AAA Day One initiates IPO process

Day One initiates IPO process

Day One Biopharmaceuticals, a US-based cancer drug developer which counts conglomerate Access Industries and pharmaceutical firm Takeda as investors, has filed to raise $100m in an initial public offering.

Founded in 2018, Day One was incubated by venture capital firm Canaan and is developing drug treatments for cancer patients of all ages, with an initial focus on children.

The company’s lead product candidate, DAY101, is being developed to treat progressive low-grade glioma, which Day One claims is the most common type of brain tumour diagnosed in children. It will use the IPO proceeds to fund clinical trials and pre-commercialisation activities for DAY101.

Canaan’s Canaan XI fund is the largest shareholder in Day One, with a 21.2% stake, followed by Access Industries’ AI Day 1 vehicle and Atlas Venture’s Fund XI, with 16.9% stake each. Takeda’s Millennium Pharmaceuticals subsidiary has a 12% stake in the company while RA Capital Management owns 5.9%.

RA Capital led Day One’s $130m series B round in February 2021, with investments from Access Industries subsidiary Access Biotechnology, Canaan, Boxer Capital, BVF Partners, Franklin Templeton, Janus Henderson Investors, Perceptive Advisors, Viking Global Investors, Atlas Venture and funds and accounts advised by T Rowe Price.

The company had emerged from stealth in May 2020, with $60m of series A funding from Access Biotechnology, Atlas Venture and Canaan.

JP Morgan, Cowen, Piper Sandler and Wedbush PacGrow have been appointed as underwriters for the offering, which is set to take place on the Nasdaq Global Market.