Here's How Day One Biopharmaceuticals Stock Could Keep Climbing
There's nothing like a good clinical trial readout to get the blood pumping for a biotechnology industry that has been under a lot of pressure. The tech-laden Nasdaq Composite index may be down more than 30% this year, but that didn't stop money from pouring into Day One Biopharmaceuticals (NASDAQ: DAWN) recently.
A market reacting to positive clinical trial data for Day One's experimental brain cancer treatment, tovorafenib, pushed its stock price 126% higher on Monday, June 13. As is usually the case when a relatively unknown biotechnology stock shoots up, investors want to know if it can keep climbing.
Day One's lead candidate, tovorafenib, is an oral, brain-penetrant, highly selective pan-rapidly accelerated fibrosarcoma, or pan-RAF, kinase inhibitor. Mutant pan-RAF kinases are thought to play a key role in tumor growth for glioma patients. By shutting down pan-RAF kinases, tovorafenib could be a new way to treat this difficult disease.
Source Fool.com
