By Christy Santhosh
March 6 (Reuters) – French drugmaker Servier said on Friday it would buy U.S.-based Day One Biopharmaceuticals for about $2.5 billion, expanding its brain tumor treatment portfolio.
Servier has offered $21.50 per share in cash, a premium of 68% to the stock’s last close. Shares of Day One jumped 65% in morning trade.
The deal will give the company access to Day One’s Ojemda, the only U.S. Food and Drug Administration-approved monotherapy for pediatric low-grade glioma, the most common form of brain tumor in children.
Servier already sells adult glioma drug Voranigo and the deal strengthens its presence in the space. The company has been pushing to build its rare cancer portfolio to meet its target of 10 billion euros ($11.58 billion) in annual revenue by 2030.
Ojemda was approved in 2024 in patients whose tumors progressed after prior treatment. It is now being tested as a first-line therapy, with trial results expected in the second half of 2027.
Wedbush analyst Robert Driscoll called Day One “an attractive take-out candidate”, pointing to the successful launch of Ojemda and potential for future sales if the drug is approved in the frontline setting around 2028.
The drug generated $155.4 million in sales in 2025, and is projected to bring $225 million to $250 million in 2026.
Ojemda competes with Novartis’ combination therapy Tafinlar and Mekinist, which requires daily dosing compared with Ojemda’s once-weekly regimen.
The companies said the deal is expected to close in the second quarter. Servier expects to fund the transaction through existing cash and investments.
($1 = 0.8638 euros)
(Reporting by Christy Santhosh in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila)
