Promising Future for Day One Biopharmaceuticals: Buy Rating on Ojemda’s Potential in Pediatric Brain Tumors

J.P. Morgan analyst Anupam Rama maintained a Buy rating on Day One Biopharmaceuticals (DAWN – Research Report) today and set a price target of $29.00.

Anupam Rama has given his Buy rating due to a combination of factors that highlight the promising future of Day One Biopharmaceuticals. The company’s lead product, Ojemda, has shown significant potential in treating relapsed pediatric low-grade glioma (pLGG), which is the most common brain tumor in children. The data presented at ASCO 2025 reinforced the clinical profile of Ojemda, particularly in terms of its efficacy and manageable side effects, such as low-grade rashes that resolve within a few months.
Furthermore, the market potential for Ojemda is substantial, with an estimated peak sales of over $600 million in the U.S. for the relapsed/refractory setting alone. The company’s strategy to expand the use of Ojemda in both front-line and broader solid tumor settings, along with its recent in-licensing of the MEK inhibitor pimasertib, adds to its growth prospects. The analyst’s price target of $29 is based on a discounted cash flow analysis, taking into account the long-term potential and current undervaluation of DAWN shares.

In another report released on May 14, Bank of America Securities also maintained a Buy rating on the stock with a $20.00 price target.