Day One pullback brings attractive entry point, says H.C. Wainwright

Day One Biopharmaceuticals shares are down 40% year-to-date on "misplaced investor fears" of FDA approval for tovorafenib, H.C. Wainwright analyst Andres Maldonado the analyst tells investors in a research note. The analyst continues to view the program as approvable and expects additional data presented at this year’s American Society of Clinical Oncology meeting to reinforce its "strong clinical profile." Tovorafenib’s performance has set itself apart from most glioma studies, which tend to have a negative reflexive investor response given its poor clinical track record, the analyst tells investors in a research note. Even if tovorafenib’s overall response rate were to drop 50%-60% at ASCO’ 23, it still has an 80% probability of success in the progressive pediatric low-grade glioma setting, says the firm. It reiterates a Buy rating on Day One with a $45 price target saying the pullback in shares provides an attractive entry point.