NEW YORK – Day One Biopharmaceuticals on Wednesday priced an initial public offering of 10,000,000 shares of its common stock at $16 per share.
The offering will bring in $160 million before underwriting discounts, commissions, and other expenses. Net proceeds are expected to be $135.5 million or around $156.4 million if the underwriters exercise their option to purchase an additional 1.5 million shares.
The shares are expected to begin trading on the Nasdaq Global Select Market under the ticker symbol “DAWN" on May 27.
JP Morgan, Cowen, and Piper Sandler are joint bookrunning managers for the offering. Wedbush PacGrow is the lead manager for the offering.
The South San Francisco-based firm plans to use the proceeds to support development of its pan-RAF inhibitor, DAY-101. It will use up to $100 million for several studies involving DAY-101, including a Phase II study in pediatric low-grade glioma, a Phase III trial in front-line, pediatric low-grade glioma, and a Phase II study in RAS/RAF-altered, adult solid tumors, according to its registrational filing with the US Securities and Exchange Commission.
Day One will also spend between $20 million and $40 million on a Phase Ib/II study exploring the activity of DAY-101 in combination with pimasertib, a MEK inhibitor it licensed from Merck KGaA, in adults with MAPK-altered solid tumors. The company expects to begin this trial in the first quarter of 2022.
The raised funds will also go toward further development or acquisitions of preclinical and clinical programs, Day One said in the SEC filing. Since its founding in November 2018, Day One has raised $190 million in two funding rounds, most recently raising $130 million in February.