Servier is expanding its cancer drug prospects through the $2.5 billion acquisition of Day One Biopharmaceuticals, a biotech with a commercialized therapy for a type of pediatric glioma and clinical-stage assets that fit the French company’s business strategy of pipeline and revenue growth, particularly in oncology.
Per acquisition terms announced Friday, Servier will pay $21.50 in cash for each share of Day One, which is a 68% premium to the stock’s Thursday closing price. When Day One went public in 2021, it priced its shares at $16 each.
Suresnes, France-based Servier has set a goal of reaching €10 billion in annual revenue by 2030, a target that includes €4 billion from oncology drugs. David Lee, CEO of U.S. subsidiary Servier Pharmaceuticals, said in an interview last year that much of that goal can be achieved with life cycle management, finding new indications for the drugs the company already has. Ongoing clinical trials are testing drug combinations that could bring existing Servier drugs to more types of cancer. But Lee said growth will also come from business deals.
“We do want to make acquisitions ideally synergistic to our current portfolio, but we’re very open to areas that are really novel, innovative,” he said.
Day One’ main asset is Ojemda, a small molecule approved as a second-line treatment for pediatric low-grade glioma, a type of brain cancer affecting children. This drug complements a Servier portfolio that includes Voranigo, which has FDA approval for treating two rare types of brain cancer.
Ojemda’s 2024 accelerated FDA approval covered its use as a second-line treatment. A Phase 3 study is ongoing that could support expanding the drug to first-line use. Day One, named for the “day one talk” physicians have with patients and families about a cancer diagnosis and treatment plan, reported $155.4 million in Ojemda sales in 2025, the product’s first full year on the market. Paris-based Ipsen licensed rights to Ojemda outside of the U.S.; a European regulatory decision for the drug is expected this year.
Antibody drug conjugates (ADCs) make up Day One’s pipeline. Months after Ojemda’s approval, Day One licensed a drug now called DAY301, an ADC that targets the protein PTK7 on cancer cells. Day One holds global rights to this drug, excluding Greater China, where Shanghai-based MabCare Therapeutics retains rights. DAY301 is currently in Phase 1 testing in solid tumors in adults and pediatric patients.
Day One expanded its ADC prospects last year, agreeing to buy Mersana Therapeutics in a deal that could reach up to $285 million in value if milestones are met. Mersana’s main asset was emilatug ledadotin (emi-le), an ADC that targets B7-H4. Other companies developing ADCs for this target include GSK, which acquired its contender in a business deal. Pfizer was pursuing B7-H4 but has since discontinued programs for the target.
In an email sent to Day One employees Friday morning, CEO Jeremy Bender said Servier will enable Ojemda to reach many more patients as part of the French company’s growing global footprint.
“Servier has made incredible strides in cancer innovation and shares our aspirations to address real unmet needs by integrating the patient voice at every stage of the medicine life cycle,” Bender wrote. “Servier’s team is truly excited about the planned acquisition and looks forward to incorporating Ojemda and our growing pipeline into its growth plans.”
Servier is privately held and governed by a nonprofit foundation. The company’s three core therapeutic areas are oncology, neurology, and cardiometabolism and venous diseases. Servier made a big splash in oncology by acquiring Shire’s cancer business for $2.4 billion in 2018. Three years later, Servier acquired the clinical-stage oncology assets of Agios Pharmaceuticals for $1.8 billion up front. The targeted therapies from Agios have since won FDA approval, Tibsovo for a rare type of blood cancer and Voranigo for astrocytoma and oligodendroglioma.
Servier reported €6.9 billion (about $8 billion) in total revenue for the 2024/2025 fiscal year. Oncology is its fastest growing therapeutic area. About €2.2 billion ($2.5 billion) in revenue for the year came from oncology products, a 54.6% increase compared to the prior fiscal year. While Servier’s annual report does not break down revenue by product, it attributes much of the oncology revenue growth to Voranigo. Lee said this drug is projected to become a blockbuster seller. The report also lists 22 clinical-stage programs and 12 research projects in oncology, which is more than Servier’s other therapeutic areas combined.
The Servier annual report states a goal of secure one new marketing authorization per year in oncology. Business deals could help the company achieve that. Nearly a year ago, Servier reached a deal to develop a Black Diamond Therapeutics small molecule designed to target RAS and RAF alterations in solid tumors. Last May, Servier acquired global rights to a BioNova Pharmaceuticals menin inhibitor in development for leukemias. Last September, Servier paid Ideaya Biosciences $230 million up front for rights outside of the U.S. to darovasertib, which is in late-stage development for a rare type of eye cancer.
Servier’s latest acquisition requires a majority of Day One stockholders to tender their shares. The deal must also pass regulatory muster. The companies expect to complete the transaction in the second quarter of this year.
Image: CGToolbox, Getty Images
