NEW YORK – Day One Biopharmaceuticals on Tuesday priced an underwritten public offering of 10,000,000 shares of its common stock at a price of $15.00 per share.
The gross proceeds from the offering are $150 million, and after deducting underwriting discounts and commissions and other offering expenses, Day One expects net proceeds of $140.7 million. The offering will close on Friday.
The underwriters will also have the option to purchase an additional 1,500,000 shares at the public offering price for 30 days after the offering closes. JP Morgan, Cowen, and Piper Sandler are acting as the joint bookrunning managers for the offering, and Wedbush PacGrow is acting as the lead manager for the offering.
The proceeds will be used to fund Day One's two ongoing clinical trials: the Phase II FIREFLY-1 study, evaluating its pan-RAF inhibitor tovorafenib in pediatric patients with relapsed low-grade glioma, and the Phase II FlRELIGHT-1 trial, studying its MEK inhibitor pimasertib alone or plus tovorafenib in recurrent or progressive solid tumors with activating RAF alterations.
The funds will also be used to initiate the firm's upcoming randomized Phase III FIREFLY-2 clinical trial, which will compare tovorafenib to chemotherapy in newly diagnosed pediatric patients with low-grade glioma with RAF alterations.
However, Day One does not expect the proceeds to be sufficient to fund any of its drug candidates through regulatory approval, the firm said in a filing with the US Securities and Exchange Commission. The company expects it will need to raise "substantial additional capital" to commercialize its candidates. But, it does expect the proceeds will fund the company's operations into 2025.
The company reported positive initial results from its Phase II trial of tovorafenib in pediatric low-grade glioma this week, showing more than half (64 percent) of 22 patients in the trial responded to the treatment. Further data from this trial is expected later this year and could support a new drug application submission to the US Food and Drug Administration.
Day One also said that funds from the offering will be used for other research and development costs, potential strategic acquisitions or licensing deals, working capital, capital expenditures, and other general corporate purposes.