DAWN Stock Forecast & Price Target

Day One Biopharmaceuticals Inc. reported substantial financial growth, achieving total revenue of $131.2 million for the year, driven by increased prescription volumes and improved gross-to-net revenue, including $57.2 million from OJEMDA net product sales. The company anticipates continued revenue expansion as prescribers become more familiar with OJEMDA's benefits and its application in earlier lines of therapy, indicating a potential increase in treatment duration. Furthermore, the positive momentum in patient enrollment for the FIREFLY-2 trial and a rise in total prescriptions to 1,647 for 2024 reflect growing confidence among prescribers, positioning Day One favorably within the growing market for targeted cancer therapies.

Day One Biopharmaceuticals Inc faces a negative financial outlook due to the regulatory classification of its therapy, OJEMDA, as a pediatric-only treatment, which has led to a significant decrease in expected gross-to-net revenue impacts from 15–18% to 12–15%. The company reported substantial net losses, totaling $65.7 million in Q4 2024 and $95.5 million for FY 2024, further exacerbated by high non-cash stock-based compensation expenses. Additionally, there are significant clinical and commercial risks associated with its product candidate DAY101, including potential efficacy issues and competition from existing therapies that may impede future sales growth.