Oppenheimer still not a buyer of Day One Biopharmaceuticals despite selloff

Oppenheimer analyst Matthew Biegler notes that Day One Biopharmaceuticals’ shares have traded down about 25% since Friday. The firm would still not be a buyer despite the selloff. It seems the revelation of the endpoint change in FIREFLY-2 has opened a Pandora’s box that now touches broadly on tovorafenib’s approvability and its addressable market, it argues. Oppenheimer still believes accelerated approval is on the table, but says there are more risks it hasn’t considered. The firm is hearing convincing evidence that BRAF-fusions tend to be easier to treat than their V600E cousins. That revelation, if true, would explain why Oppenheimer’s own estimates of the addressable market differed from the company’s-and lend more credence to its conservative versus base case scenario. The firm reiterates a Perform rating on the shares.