In another rather ugly session in today’s equity markets, it’s good practice to look for winners. Today, investors in Day One Biopharmaceuticals (NASDAQ:DAWN) are definitely winning. As of early afternoon trading, DAWN stock has more than doubled, signaling some positive news has been released.
Such is the case with this biopharma player. Today, the company announced positive results from a study of its treatment for specific pediatric tumors. The company’s Phase 2 FIREFLY-1 trial for tovorafenib (DAY101) showed a meaningful response rate of 64% among the 22 patients enrolled in the study, and a clinical benefit rate of 91%.
These sorts of efficacy rates are impressive, and suggest this trial has legs. The company expects to enroll 400 patients in an upcoming Phase 3 trial. Today, investors appear to be pricing in overall success with this drug, as evidenced by the doubling of this company’s share price overnight.
Let’s dive a bit more into what was announced, for investors interested in DAWN stock right now.
DAWN Stock Soars on Positive Clinical Trial Results
In addition to these response rate and benefit rate metrics, there’s more encouraging news coming out of this study. Out of the 22 patients studied, six reported a stable disease, with 14 experiencing partial responses. These responses included tumor shrinkage, which ranged between 19% and 43%.
No safety issues or adverse effects were reported. Accordingly, given the rather positive results this drug provided, additional studies on longer-term treatment using tovorafenib appear to be warranted.
Today, investors appear to like what they’re seeing with this data. All indications are that this drug could be set up well for Food and Drug Administration (FDA) approval. Of course, time will tell if this is the case.
That said, DAWN stock is one that’s certainly piqued the interest of many investors. Indeed, I’m one such investor, and this stock has found its way onto my watch list today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.