Form 4: Day One Bio CCO Sells Shares for Tax Liability

Day One Biopharmaceuticals' Chief Commercial Officer, Lauren Merendino, sold shares to cover tax obligations arising from the vesting of Restricted Stock Units.

Summary

• Lauren Merendino, Chief Commercial Officer of Day One Biopharmaceuticals, Inc. (DAWN), reported changes in her beneficial ownership.
• On August 15, 2025, she acquired a total of 10,536 shares of common stock through the settlement of Restricted Stock Units (RSUs).
• On August 18, 2025, she sold 3,766 shares of common stock at a weighted average price of $6.7671 per share.
• The sale was explicitly for the sole purpose of covering the reporting person's tax liability associated with the RSU settlements.
• Following these transactions, her direct beneficial ownership of common stock is 41,931 shares.
• She also holds 47,939 unvested Restricted Stock Units.

Sentiment

Score: 5

Explanation: The filing reports a routine insider transaction related to executive compensation and tax obligations. It does not contain information that would significantly alter the perception of the company's financial health or strategic direction, thus indicating a neutral sentiment.

Positives

• The vesting of Restricted Stock Units (RSUs) indicates the continued provision of service by a key executive.
• The sale of shares was for a specific, non-discretionary purpose (tax liability), not a general divestment, which is a common practice for executive compensation.

Future Outlook

Remaining Restricted Stock Units (RSUs) are scheduled to vest in quarterly installments on February 15, May 15, August 15, and November 15, subject to the reporting person's continued service to the Issuer.

Management Comments

• The sale of shares is for the sole purpose of covering the Reporting Person's tax liability with respect to the settlement of RSUs.

Industry Context

This Form 4 filing is a routine disclosure of insider stock transactions, specifically related to executive compensation and tax obligations. Such transactions are common across all industries for publicly traded companies and do not typically reflect changes in broader industry trends or competitive positioning.

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine, tax-related insider transaction and does not signal a change in company fundamentals or management confidence.
• Employees: No direct impact indicated.

Next Steps

• Continued vesting of remaining Restricted Stock Units (RSUs) on future quarterly dates (February 15, May 15, August 15, November 15), contingent on continued service.

Key Dates

Recommendation

The filing details a routine insider transaction where the Chief Commercial Officer sold shares to cover tax liabilities from RSU vesting. This is a common and expected event for executive compensation and does not indicate a change in the company's fundamentals or management's confidence, thus a 'hold' recommendation is appropriate.

Keywords

Day One Biopharmaceuticals, DAWN, Insider Trading, Form 4, Restricted Stock Unit, RSU, Stock Sale, Tax Liability, Lauren Merendino, Chief Commercial Officer