Day One Biopharmaceuticals (DAWN) AI Stock Analysis

• Market Cap: $673.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: N/A
• EPS Growth: 56.10%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.35
• Shares Outstanding: 101,362,465
• 10 Day Avg. Volume: 1,271,733
• 30 Day Avg. Volume: 1,406,890
• PEG Ratio: -0.14
• Price to Book (P/B): -5.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.82
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 3.28
• Enterprise Value/Gross Profit: 8.61
• Enterprise Value/Ebitda: -1.46
• 1Y Price Target: $28.14
• Price Target Upside: 323.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 50 Neutral
• Price Target: ―

Day One Biopharmaceuticals shows strong growth potential, particularly with the success of OJEMDA and a solid cash position. However, consistent net losses, negative technical indicators, and a challenging valuation due to ongoing losses present significant risks. The strong momentum from recent earnings highlights provides some optimism, balancing out the weaker financial and technical aspects.

Positive Factors

Earnings

Incremental ASCO data supports our launch trajectory, indicating a favorable risk/reward setup for Day One as Ojemda enters its first half of commercial sales post-FDA approval.

Financial Performance

Day One Biopharmaceuticals reported a robust cash position of $473 million, a best-in-class commercial product, an experienced management team, and is currently at its lowest valuation in over 30 months, presenting a buying opportunity with a holding period of at least 12 months.

Market Position

Reaffirming commercial trajectory: real-world momentum mirrors clinical confidence, with over 1,600 prescriptions written and $57.2M in net sales achieved, validating market readiness and unmet need.

Negative Factors

Market Concerns

Pressure on the stock is from concerns around the adoption rate in 2025, as management mentioned that the sales ramp would be similar to a rare disease drug due to infrequency of treatment decisions.

Regulatory Risks

Downside risks include timeline setbacks for upcoming readouts, regulatory setbacks, and the development of other pan-BRAF inhibitors from competitors.

Sales Performance

Ojemda TRx trends were slightly below expectations.

Day One Biopharmaceuticals Business Overview & Revenue Model

Company Description

Day One Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops and commercializes targeted therapies for patients with genetically defined cancers. Its lead product candidate is DAY101, an oral brain-penetrant type II pan-rapidly accelerated fibrosarcoma kinase inhibitor that is in Phase II clinical trial for pediatric patients with relapsed/progressive low-grade glioma. The company is also developing Pimasertib, an oral small molecule inhibitor of mitogen-activated protein kinase kinases 1 and 2. Day One Biopharmaceuticals, Inc. was incorporated in 2018 and is headquartered in South San Francisco, California.

How the Company Makes Money

Day One Biopharmaceuticals makes money primarily through the development and eventual commercialization of its oncology therapies. The company invests in research and development to create novel cancer treatments, which, upon successful clinical trials and regulatory approval, can be marketed and sold. Revenue streams include potential product sales, licensing agreements, and partnerships with larger pharmaceutical companies for the co-development or commercialization of their therapies. Additionally, Day One may secure funding through grants, collaborations, and strategic alliances that provide financial support during the clinical development stages.

Day One Biopharmaceuticals Financial Statement Overview

Summary

Day One Biopharmaceuticals demonstrates growth potential with a notable revenue increase, but consistent net losses and reliance on external financing are key challenges. While the balance sheet shows some recovery, the company must focus on achieving operational profitability and stronger cash flows to enhance financial stability.

Income Statement

Day One Biopharmaceuticals has shown a significant increase in revenue in the latest year, but they still operate at a net loss, reflecting a negative net profit margin. The EBIT and EBITDA margins are also negative, indicating ongoing operational challenges in achieving profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting conservative leverage. However, the negative equity in previous years indicates past financial instability. Recent improvements in equity position show progress, but the equity ratio suggests a need for further strengthening.

Cash Flow

Cash flow from operations remains negative, yet there is notable improvement in free cash flow growth. The cash flow from financing reflects reliance on external funding, which could pose risks if not managed effectively.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
161.92M	131.16M	0.00	0.00	0.00	0.00
	Gross Profit
153.76M	125.88M	-383.00K	-531.00K	-199.00K	-155.00K
	EBIT
-191.57M	-217.27M	-206.06M	-146.91M	-72.74M	-13.78M
	EBITDA
-189.60M	-217.27M	-206.06M	-141.65M	-72.56M	-43.66M
	Net Income Common Stockholders
-69.08M	-95.50M	-188.92M	-132.18M	-70.44M	-40.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
473.02M	531.72M	366.35M	342.27M	284.31M	43.73M
	Total Assets
534.36M	582.79M	376.05M	349.06M	289.82M	45.66M
	Total Debt
2.92M	2.60M	408.00K	813.00K	220.00K	402.00K
	Net Debt
-30.44M	-122.37M	-230.38M	-84.45M	-284.09M	-43.33M
	Total Liabilities
54.84M	80.04M	29.51M	17.02M	8.67M	94.16M
	Stockholders Equity
479.51M	502.75M	346.54M	-269.67M	-127.49M	-54.20M
Cash Flow		Free Cash Flow
-165.47M	-80.28M	-150.08M	-109.90M	-56.54M	-13.58M
	Operating Cash Flow
-87.38M	-78.11M	-146.85M	-109.87M	-48.54M	-13.49M
	Investing Cash Flow
-352.89M	-230.99M	128.38M	-255.07M	-8.00M	-92.00K
	Financing Cash Flow
203.24M	203.29M	164.00M	165.90M	297.12M	29.98M

Day One Biopharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAWN, the sentiment is Negative. The current price of 6.64 is below the 20-day moving average (MA) of 6.66, below the 50-day MA of 6.90, and below the 200-day MA of 11.14, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 19.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAWN.

Day One Biopharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVXL	62 Neutral	$685.54M	―	-40.13%	―	―	-3.08%
NRIX	60 Neutral	$907.97M	―	-64.16%	―	-30.25%	-5.92%
XERS	60 Neutral	$704.68M	―	222.83%	―	29.88%	35.11%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
ZYME	53 Neutral	$888.71M	―	-29.80%	―	85.05%	15.96%
DAWN	50 Neutral	$673.05M	―	-17.80%	―	―	56.10%
PHVS	42 Neutral	$910.04M	―	-51.85%	―	―	0.71%

Day One Biopharmaceuticals Corporate Events

Day One Biopharmaceuticals Reports 2024 Financial Results

On February 25, 2025, Day One Biopharmaceuticals announced its financial results for the fourth quarter and full year 2024, reporting OJEMDA net product revenues of $29.0 million for Q4 and $57.2 million for the year. The company ended 2024 with $531.7 million in cash and investments, and highlighted the approval of OJEMDA as a catalyst for growth. Significant achievements included the Exclusively Pediatric designation for OJEMDA, progress in clinical trials, and increased R&D and SG&A expenses. The announcement reflects Day One’s strategic positioning for long-term growth and its commitment to advancing pediatric cancer treatments.