On June 2, analyst Soumit Roy from JonesTrading maintained a Buy rating on Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) and retained the price target of $26.00.
The analyst supported the positive rating with Ojemda’s potential, which is a prescription medicine that treats certain brain tumor types. He reasoned that its ability to facilitate growth recovery in children under 12 years old highlights a key concern associated with its long-term adoption.
A closeup of pills in a pharmacy, representing the high quality medications of the company.
According to him, physicians at ASCO exhibited willingness to prescribe the drug as a first-line treatment because of its convenient once-weekly dosing in an outpatient setting, which distinguishes it from the other demanding requirements of chemotherapy.
Roy further reasoned that Ojemda has a favorable side effect profile when compared to other MEK inhibitors, as it causes less severe rashes that typically dissipate within a few months. He stated that it is a preferable option over chemotherapy for parents because of its reversible effect on growth suppression.
The drug’s use in treating pediatric glioma patients is also promising because of a lack of severe adverse events like intratumoral hemolysis and the continued durability of response post-discontinuation.
Day One Biopharmaceuticals, Inc. develops and commercializes targeted therapies for genetically defined cancers in patients of all ages. Its products include DAY101 and pimsertib.
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