H.C. Wainwright Maintains Buy Rating on Day One Biopharmaceuticals (DAWN), Keeps PT

On June 2, analyst Andres Y. Maldonado from H.C. Wainwright maintained a Buy rating on Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN), retaining a price target of $36.00.

The analyst based the rating update on the recent FDA approval of Ojemda (tovorafenib) for BRAF-altered, relapsed, or refractory pediatric low-grade glioma (pLGG). The approval marks a significant milestone for Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN), resulting in a promising stage for its commercial launch.

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A close-up of a scientist in a laboratory environment, working on a biopharmaceutical product candidate.

The analyst reasoned that the company has optimistic revenue expectations for 2025, supported by longer treatment durations and an expanding market. Its addressable market has reached a notable 2,000-3,000 patients in the US alone.

Maldonado further supported the Buy rating by citing the potential for front-line use, pending results from the FIREFLY-2 study, which evaluates the efficacy, safety, and tolerability of tovorafenib as monotherapy.

He said that the ASCO 2025 data offers compelling evidence for the drug’s efficacy and safety, with a high patient compliance rate and manageable side effects. It also demonstrates that the effect on growth is reversible, making it significant for the long-term viability of treatment.

The analyst also reasoned that the market has an unmet need and readiness for the drug, and the initial market uptake of 1,600 prescriptions and net sales worth over $57.2 million in 2024 corroborate this need. The growing prescriber confidence and robust pricing strategy thus support the optimistic outlook.

Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) develops and commercializes targeted therapies for genetically defined cancers in patients of all ages. Its products include DAY101 and pimsertib.

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Disclosure: None.