Analyst action
H.C. Wainwright reduced its price target on Day One Biopharmaceuticals (NASDAQ: DAWN) to $22 from $25 while maintaining a Buy recommendation on the shares. The firm’s adjustment comes as investors track both the commercial rollout of OJEMDA and a slate of clinical-readout milestones the company has scheduled through 2027.
Market context and valuation
Day One is currently valued at approximately $1.23 billion. Over the past six months the stock has climbed roughly 72%, with sell-side targets observed in a range from $17 to $29. These targets reflect differing analyst views on commercialization trajectory and pipeline progress.
Commercial performance
The company reported full-year 2025 net product revenue of $155.4 million for OJEMDA, representing 172% year-over-year growth after the drug’s April 2024 approval for relapsed/refractory BRAF-altered pediatric low-grade glioma. Quarterly momentum continued into the fourth quarter, when revenue reached $52.8 million, supported by rising prescription volumes and growing familiarity among treating physicians.
Prescription data show 1,394 prescriptions in the fourth quarter and a total of 4,635 prescriptions for 2025, an increase of 181% versus 2024. The business unit sustained an 89% gross profit margin, a metric that highlights the product’s current pricing strength.
Guidance and analyst comparisons
Day One reaffirmed its U.S. revenue guidance for fiscal 2026 at $225 million to $250 million. The midpoint of that guidance modestly exceeds the analyst consensus of $236.6 million. In the latest quarter the company’s $52.8 million in revenue also topped the analyst estimate of $45.86 million.
Clinical development and milestones
On the clinical front, updated long-term follow-up from the pivotal FIREFLY-1 trial reported a 53% objective response rate, a median duration of response of 19.4 months, and a median time to next treatment of 42.6 months.
Day One has been active on the acquisition and advancement front. It acquired emiltatug ledadotin, a B7-H4-targeted antibody-drug conjugate (ADC) currently in Phase 1 for adenoid cystic carcinoma, with data anticipated in mid-2026. The company is also advancing DAY301, a PTK7-targeted ADC, and expects initial clinical data in the second half of 2026.
Enrollment in the Phase 3 FIREFLY-2 frontline pediatric low-grade glioma trial is expected to complete in the first half of 2026, with topline results projected for mid-2027.
What this means for investors
The analyst adjustment to the price target reflects updated expectations for valuation while leaving the investment rating unchanged. Key commercial metrics and upcoming clinical readouts will likely remain focal points for market participants as they reassess revenue trajectories and pipeline de-risking over the next 12 to 24 months.