In a report released today, Ami Fadia from Needham maintained a Buy rating on Day One Biopharmaceuticals, with a price target of $16.00.
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Ami Fadia has given his Buy rating due to a combination of factors surrounding Day One Biopharmaceuticals’ strategic acquisition of Mersana Therapeutics. This acquisition introduces Emi-Le, an antibody-drug conjugate (ADC) targeting B7-H4, into Day One’s pipeline. Emi-Le is currently being evaluated in a Phase 1 study and shows promise as a potential best-in-class monotherapy for adenoid cystic carcinoma (ACC), a rare and aggressive cancer with no FDA-approved treatments.
The acquisition deal, valued at approximately $285 million, is seen as a positive strategic move for Day One. The transaction is expected to be financially viable, supported by existing cash resources, and the initial Phase 1 data presented at ASCO 2025 has slightly de-risked the ADC. This acquisition is anticipated to strengthen Day One’s oncology portfolio, enhancing its growth prospects and justifying the Buy rating.
In another report released on November 7, J.P. Morgan also maintained a Buy rating on the stock with a $27.00 price target.