| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | 4.63 | -59 |
| Graham-Dodd Method | 0.27 | -98 |
| Graham Formula | n/a |
Day One Biopharmaceuticals, Inc. (NASDAQ: DAWN) is a clinical-stage biopharmaceutical company focused on developing targeted therapies for genetically defined cancers, particularly in pediatric and young adult populations. Headquartered in South San Francisco, California, the company’s lead candidate, DAY101, is a brain-penetrant pan-RAF kinase inhibitor in Phase II trials for relapsed/progressive low-grade glioma. Additionally, Day One is advancing Pimasertib, a MEK1/2 inhibitor, further diversifying its oncology pipeline. Operating in the high-growth biotechnology sector, Day One leverages precision medicine to address unmet needs in rare cancers, positioning itself as an emerging player in pediatric oncology. With a market cap of approximately $635 million, the company combines innovative science with strategic clinical development, attracting investor interest in niche oncology markets.
Day One Biopharmaceuticals presents a high-risk, high-reward investment opportunity given its clinical-stage focus on pediatric oncology, a niche with significant unmet needs. The company’s lead candidate, DAY101, shows promise in treating low-grade glioma, but its success hinges on Phase II trial outcomes and eventual FDA approval. Financially, Day One reported a net loss of $95.5 million in its latest fiscal year, with $124.9 million in cash reserves, suggesting a runway that may require additional funding. The negative beta (-1.241) indicates low correlation with broader markets, potentially offering diversification benefits. Investors should weigh the potential for breakthrough therapies against the inherent risks of clinical setbacks, regulatory hurdles, and cash burn typical of biotech firms.
Day One Biopharmaceuticals competes in the targeted oncology space, differentiating itself through a focus on pediatric and genetically defined cancers. Its lead asset, DAY101, targets the RAF kinase pathway—a mechanism also explored by competitors like Roche (Tafinlar) and Pfizer (Braftovi). However, DAY101’s brain-penetrant properties and pediatric application carve out a unique niche. The company’s pipeline depth is limited compared to larger oncology-focused biotechs, but its specialization in rare cancers reduces direct competition. Day One’s strategic emphasis on biomarker-driven therapies aligns with industry trends toward precision medicine, though its reliance on a single late-stage candidate (DAY101) introduces pipeline concentration risk. Partnerships or acquisitions could bolster its position, but for now, its competitive edge lies in clinical execution and the unmet need in pediatric low-grade glioma.