Day One Biopharmaceuticals (DAWN) AI Stock Analysis

• Market Cap: $698.59M
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 2190.50%
• EPS Growth: 52.85%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 53
• Industry: Biotechnology
• EPS (TTM): -0.29
• Shares Outstanding: 102,431,930
• 10 Day Avg. Volume: 1,773,975
• 30 Day Avg. Volume: 1,907,671
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $23.00
• Price Target Upside: 229.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• 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

Financial Performance

Day One Biopharmaceuticals reported a robust cash position of $453.1MN, a best-in-class commercial product, and an experienced management, making it a buying opportunity.

Market Adoption

Ojemda quarterly prescriptions increased by 15%, with over 3,300 total prescriptions written in the US, highlighting strong adoption.

Product Growth

Steady growth is assumed for Ojemda with peak sales of over $500 million in the US.

Negative Factors

Earnings

The 2Q25 EPS of -$0.29, while slightly higher than consensus, reflects a challenging financial performance.

Revenue Guidance

The FY 2025 product net revenue guidance of $140M - $150M is lower than the consensus of $151.7M.

Sales Performance

Ojemda sales of $33.9M came in approximately 4.5% lower than consensus 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	187.64M	131.16M	0.00	0.00	0.00	0.00
Gross Profit	176.42M	125.88M	-383.00K	-531.00K	-199.00K	-155.00K
EBITDA	-110.08M	-217.27M	-206.06M	-141.65M	-72.56M	-43.66M
Net Income	-95.00M	-95.50M	-188.92M	-132.18M	-70.44M	-40.51M
Balance Sheet
Total Assets	519.04M	582.79M	376.05M	349.06M	289.82M	45.66M
Cash, Cash Equivalents and Short-Term Investments	453.10M	531.72M	366.35M	342.27M	284.31M	43.73M
Total Debt	3.00M	2.60M	408.00K	813.00K	220.00K	402.00K
Total Liabilities	58.20M	80.04M	29.51M	17.02M	8.67M	94.16M
Stockholders Equity	460.83M	502.75M	346.54M	-269.67M	-127.49M	-54.20M
Cash Flow
Free Cash Flow	-120.52M	-80.28M	-150.08M	-109.90M	-56.54M	-13.58M
Operating Cash Flow	-63.06M	-78.11M	-146.85M	-109.87M	-48.54M	-13.49M
Investing Cash Flow	-343.63M	-230.99M	128.38M	-255.07M	-8.00M	-92.00K
Financing Cash Flow	202.69M	203.29M	164.00M	165.90M	297.12M	29.98M

Day One Biopharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAWN, the sentiment is Positive. The current price of 6.98 is above the 20-day moving average (MA) of 6.59, above the 50-day MA of 6.62, and below the 200-day MA of 9.40, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 80.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$810.84M	―	-43.63%	―	―	-13.05%
ZYME	60 Neutral	$1.07B	―	-19.89%	―	95.94%	35.69%
XERS	55 Neutral	$1.19B	―	222.83%	―	35.62%	49.58%
Sector *	51 Neutral	$7.77B	-0.12	-39.78%	2.21%	22.68%	-1.42%
DAWN	50 Neutral	$698.59M	―	-24.75%	―	2190.50%	52.85%
NRIX	43 Neutral	$752.26M	―	-50.67%	―	41.86%	10.48%
PHVS	42 Neutral	$1.49B	―	-63.96%	―	―	-36.92%

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.