Day One Biopharmaceuticals, Inc. ((DAWN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Day One Biopharmaceuticals’ recent earnings call conveyed a positive sentiment, highlighting robust revenue growth and promising clinical data. The company demonstrated a strong trajectory with increased prescriptions and raised revenue guidance, although challenges such as a high gross-to-net ratio and limited impact from EAP patients were acknowledged.
Quarterly Revenue Growth
Day One Biopharmaceuticals reported a significant achievement with $38.5 million in net product revenue for Q3 2025, marking a 15% increase from the previous quarter. This growth represents the strongest quarterly performance for the company in 2025, showcasing its successful market strategies.
Steady Prescription Growth
The company experienced an 18% growth in total prescriptions, surpassing 1,200 prescriptions. This was complemented by a nearly 20% increase in new patient starts quarter-over-quarter, indicating a growing acceptance and demand for their products.
Raised Revenue Guidance
Reflecting confidence in its growth trajectory, Day One Biopharmaceuticals raised its full-year revenue guidance to a range of $145 million to $150 million for 2025. This adjustment underscores the company’s optimistic outlook for its flagship drug, OJEMDA.
Positive Clinical Data
The 2-year FIREFLY-1 data included in the OJEMDA label showed a manageable safety profile and a durable clinical benefit, with the median duration of response increasing from 13 to 18 months. This data supports the drug’s efficacy and safety.
NCCN Guideline Inclusion
Tovorafenib’s addition to the National Comprehensive Cancer Network adult glioma treatment guidelines as a Category 2A recommended treatment option marks a significant milestone, potentially enhancing its adoption in clinical practice.
Limited EAP Patient Impact
Despite the valuable insights provided by EAP patients, they currently represent a small fraction of Day One’s business, indicating a limited impact on the company’s commercial operations.
High Gross-to-Net Ratio
The company reported a high gross-to-net ratio, attributed to short-term increases in Medicaid rebates following a price increase. This factor presents a challenge in the company’s financial landscape.
Forward-Looking Guidance
The earnings call highlighted significant growth metrics for OJEMDA, with net product revenue increasing by 15% quarter-over-quarter. The company anticipates further insights from the 3-year FIREFLY-1 data, with a presentation scheduled at the Society for Neuro-Oncology Annual Meeting. These developments emphasize the strong commercial trajectory and expanding prescriber base for OJEMDA.
In summary, Day One Biopharmaceuticals’ earnings call reflected a positive outlook, driven by strong revenue and prescription growth, promising clinical data, and strategic advancements. While challenges such as a high gross-to-net ratio persist, the company’s raised revenue guidance and inclusion in NCCN guidelines highlight its potential for continued success.