Day One Biopharmaceuticals price target lowered to $40 from $45 at Piper Sandler

Piper Sandler lowered the firm’s price target on Day One Biopharmaceuticals to $40 from $45 on account of expected increase in spend with the transition to a commercial-stage company, while keeping an Overweight rating on the shares following FY24 earnings and pipeline update. Tovorafenib continues to track towards a potential April 2024 approval in r/r pLGG. Management reiterated that the review process has proceeded in-line with their expectations and that FDA engagement has been timely and productive, the firm says. The potential confirmatory FIREFLY-2 is also clearly well underway with more than 80 global sites now activated. Altogether, Piper continues to believe that tovorafenib is very well-positioned for a potential upcoming approval and sees Day One as sufficiently capitalized to realize this opportunity.