Day One Biopharmaceuticals stock soars on Servier acquisition agreement

LootboxPhobia · 2026-03-06T23:09:03+00:00

Day One Biopharmaceuticals stock price surged 65.6% as Servier announced a cash acquisition at $21.50 per share, valuing the company at approximately $2.5 billion. The acquisition price represents a 68% premium over the previous day's closing price. The deal is expected to close in 2026, subject to regulatory approvals. Analysts have downgraded the company's rating to Hold, with a target price of $21.50.

LootboxPhobia

2026-03-06 23:09:03

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Investing.com – Day One Biopharmaceuticals Inc (NASDAQ:DAWN) stock surged 65.6% on Friday after the company announced that Servier would acquire it for $21.50 per share in cash, valuing the company at approximately $2.5 billion.

The acquisition price represents a premium of about 68% over Day One’s Thursday closing price and approximately 86% over the volume-weighted average price over the past month as of Thursday.

Under the terms of the merger agreement, Servier will initiate a cash tender offer to acquire all of Day One’s outstanding common shares. The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions, including a majority of Day One’s outstanding shares being tendered and U.S. antitrust approval.

This acquisition positions Servier as a leader in pediatric low-grade glioma and expands its oncology pipeline from early-stage to Phase III projects. Servier plans to fund the transaction with existing cash and investments.

The Day One board has recommended that shareholders tender their shares in the offer. Following the successful completion of the tender offer, Servier will acquire any remaining shares through a second-step merger at the same per-share price.

Jones Trading analyst Soumit Roy downgraded Day One from Buy to Hold with a target price of $21.50, up from the previous $20.00. The analyst commented, “This acquisition aligns well with our $2.4 billion to $2.6 billion valuation range and is consistent with our current $20 per share target price.”

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