French pharmaceutical company Servier announced on Thursday the successful completion of its tender offer to acquire all of the issued and outstanding shares of common stock of Day One Biopharmaceuticals Inc (Nasdaq:DAWN), a US biopharmaceutical company focused on developing and commercialising targeted therapies for people of all ages with life-threatening diseases, for USD21.50 per share.

The transaction represents total equity value of approximately USD2.5bn.

This acquisition strengthens Servier's position in low-grade glioma and expands its position in oncology with the addition of a marketed product and pipeline focused on rare cancers.

Day One's portfolio includes OJEMDA (tovorafenib), an FDA-approved medicine in paediatric low-grade glioma, the most common form of childhood brain tumour. Day One already markets the product in the United States and has licensed the rights outside the US to Ipsen.

Servier said that this addition also strengthens its oncology pipeline from early clinical to Phase 3. As well as tovorafenib, which is being investigated in additional indications, Day One's pipeline includes Emi-Le (emiltatug ledadotin), a novel antibody drug conjugate (ADC), and DAY301, a targeted therapy in rare cancers.