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On Wednesday, H.C. Wainwright analyst Andrew Maldonado revised the price target for Day One Biopharmaceuticals (NASDAQ:DAWN) to $36 from the previous $40 while maintaining a Buy rating on the stock. According to InvestingPro data, the company, currently valued at $1.2 billion, is trading near its 52-week low of $11.13, with shares down about 24% over the past year. Maldonado highlighted the strong launch of OJEMDA™, noting a quarter-over-quarter growth rate of 44%, which was supported by an increase in prescription volumes, improved gross-to-net revenue, and higher inventory levels. The company’s total revenue for the year reached $131.2 million, including $57.2 million in net product sales from OJEMDA™. InvestingPro analysis shows the company maintains impressive gross profit margins of nearly 98% and holds more cash than debt on its balance sheet, with a healthy current ratio of 14.6x.
Day One Biopharmaceuticals has not provided formal financial guidance for 2025, but management is concentrating on sustaining double-digit growth in new patient starts and maintaining high treatment persistence rates. At the end of 2024, total prescriptions had reached 1,647 since the launch of OJEMDA™, with around 760 to 780 written in the fourth quarter of 2024, compared to 619 in the third quarter. This increase illustrates growing prescriber confidence, as all high-priority treatment centers, which treat a third of all pediatric low-grade glioma (pLGG) patients, have now prescribed OJEMDA™ to at least one patient, a significant rise from 82% in the previous quarter.
Maldonado’s report also mentioned that key opinion leaders (KOLs) in pediatric oncology anticipate continued use of OJEMDA™ in the relapsed/refractory setting and potentially expanding into earlier-line off-label settings. The improvements in gross-to-net revenue and inventory management have also contributed to Day One’s financial performance.
In conclusion, while reiterating the Buy rating, Maldonado adjusted the price target based on the refined sales trajectory for OJEMDA™, reflecting the growth trends observed in 2024. InvestingPro reveals that analyst targets for DAWN range from $25 to $43, with three analysts recently revising their earnings estimates upward. For deeper insights into Day One Biopharmaceuticals’ financial health and growth potential, subscribers can access the comprehensive Pro Research Report, which includes detailed analysis and actionable intelligence for smarter investing decisions.
In other recent news, Day One Biopharmaceuticals reported its fourth-quarter 2024 earnings, showcasing a 44% increase in net product revenue from the previous quarter. The company achieved total revenue of $131.2 million for the full year, with $57.2 million derived primarily from sales of its flagship product, Ojemda. Analysts noted that Day One Biopharmaceuticals’ earnings per share forecast was -$0.4625, with seven upward EPS revisions in the past 90 days, indicating improved expectations. The company also emphasized its strategic focus on expanding its pipeline and global trial initiatives, including the FIREFLY-two trial and the acquisition of DAY-three zero one. Despite these positive developments, Day One Biopharmaceuticals’ stock fell by 1.88% in aftermarket trading. The company did not provide specific revenue guidance but anticipates steady growth in new patient starts for 2025. Analysts from firms like JPMorgan and Goldman Sachs showed interest in the company’s plans to drive increased depth of prescribing Ojemda. The company also reported a strong cash position, ending 2024 with $531.7 million, supporting its ongoing operations and potential pipeline expansions.
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