French pharmaceutical giant Servier is acquiring Day One Biopharmaceuticals (Nasdaq: DAWN) for approximately $2.5 billion in equity value — a 68% premium over the March 5 closing price — to expand its rare disease oncology portfolio.

The all-cash deal values Day One at $21.50 per share, representing an 86% premium over the one-month volume-weighted average price. Day One's pipeline centers on pediatric low-grade glioma, a rare childhood brain cancer with limited treatment options. Servier, which employs over 20,000 people and generated 6.9 billion euros in revenue in fiscal 2024/25, is using the acquisition to deepen its oncology franchise.

The deal is expected to close in Q2 2026, subject to majority shareholder approval and U.S. antitrust clearance. Goldman Sachs and Baker McKenzie are advising Servier; Centerview Partners and Fenwick & West are advising Day One.

For the healthcare M&A market, the premium signals continued strong demand for rare disease assets — particularly in pediatric oncology, where unmet need is acute and regulatory pathways (orphan drug designation, priority review) create favorable economics. The deal follows a broader trend of large pharma using acquisitions to fill pipeline gaps as blockbuster drug patents approach expiration.

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