Denali recent pullback a buying opportunity, says Jefferies

After Denali Therapeutics (DNLI) reported DNL343 did not meet the primary or key secondary endpoints in the Phase 2/3 HEALEY trial in amyotrophic lateral sclerosis at 24 weeks, Jefferies says “this was always a low expectations, high-risk study” and argues that the recent pullback in the stock “should be a buying opportunity for a better set up for the rest of the year” into Hunter approval and launch and additional data on Sanfilippo at a future medical conference. The firm maintains a Buy rating and $45 price target on Denali shares.