Day One Biopharmaceuticals Inc. (NASDAQ:DAWN) is one of the 10 Stocks to Watch Right Now.
Day One soared to a new three-year high on Friday, as investors gobbled up shares following news that it is set to merge with France-based Servier for $2.5 billion.
In a joint statement, Day One Biopharmaceuticals Inc. (NASDAQ:DAWN) and Servier said that they have entered into a definitive agreement under which the latter would acquire the former’s shares at a price of $21.50 apiece. The figure marked a 68 percent upside from its latest closing price.
Photo by Pietro Jeng on Pexels
Following the news, shares of Day One Biopharmaceuticals Inc. (NASDAQ:DAWN) at intra-day trade soared to its highest price of $21.23 before paring a few cents to finish the session just up by 65.88 percent at $21.20 apiece.
According to the companies, they expect to close the transaction in the second quarter of the year, subject to customary closing conditions
“Servier’s successful track record in rare cancers and its commitment to advancing targeted therapies make it the ideal home for our portfolio as part of Day One’s mission to bring medicines to patients of all ages with life-threatening diseases,” Day One Biopharmaceuticals Inc. (NASDAQ:DAWN) CEO Jeremy Bender said.
“Joining Servier represents a unique opportunity to extend the reach of our science and our lead program in pediatric low‑grade glioma. Importantly, Servier’s dedication to the rare disease community preserves the patient‑first mindset that has defined our company since the beginning and has driven our deep commitment to the communities we serve,” he noted.
While we acknowledge the potential of DAWN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. Follow Insider Monkey on Google News.
