Ipsen endorses Day One, but US launch remains key

For many biotechs the long, hard struggle that results in getting your first drug approved is the easy bit, once the reality hits that you now have to pull off a commercial launch. Some investors might be forgiven for thinking that Day One Biopharmaceuticals is in this boat after getting Ojemda approved in April for a common childhood brain cancer, and wondering whether commercial activities would be better undertaken by a bigger company keen on an acquisition. The good news is that a deal with Ipsen struck today has added $111m to a cash balance of around $400m, and has taken ex-US commercialisation off Day One’s hands; Ojemda isn’t approved anywhere else, and all such activities will now be undertaken by Ipsen in return for milestones and double-digit royalties. That said, analysts continue to see the US Ojemda launch, which Day One is undertaking solo, as the key focus. Day One reckons the US population for the currently approved setting numbers 2,000-3,000 patients, and its plan is to target 200 centres where it reckons 90% of patients receive treatment. The Ipsen deal is a solid endorsement, but for many investors M&A remains the dream ticket.