Positive Growth Outlook for Day One Biopharmaceuticals Driven by Strong Q1 Performance and Strategic Initiatives

Analyst Tara Bancroft from TD Cowen maintained a Buy rating on Day One Biopharmaceuticals (DAWN – Research Report) and keeping the price target at $34.00.

Tara Bancroft has given her Buy rating due to a combination of factors that highlight the potential for Day One Biopharmaceuticals’ growth. The company reported a solid Q1 performance with Ojemda’s net product revenue aligning with expectations, despite early holiday-related challenges. The seasonal headwinds that impacted the quarter have subsided, leading to a steady increase in new patient growth, which is expected to continue throughout the year.
Furthermore, the launch of Ojemda is being compared to that of a rare disease treatment, which typically sees a more gradual adoption curve. This is due to the longer duration of therapy and the infrequency of patient visits. The company’s strategic focus on increasing physician confidence and encouraging earlier-line use of Ojemda is expected to drive future growth. Additionally, the high percentage of patients remaining on therapy and the potential to overcome entrenched off-label use of other treatments further support the positive outlook for Day One Biopharmaceuticals.

In another report released on April 17, Bank of America Securities also maintained a Buy rating on the stock with a $21.00 price target.