Aadi Bioscience Transforms with In-Licensing of Novel ADC Portfolio, $100 Million Sale of FYARRO® and $100 Million PIPE Financing

Core Insights - Aadi Bioscience has entered into an exclusive license agreement for a three-asset antibody-drug conjugate (ADC) portfolio developed in collaboration with WuXi Biologics and HANGZHOU DAC [1][2] - The company is selling its FYARRO product and associated infrastructure to KAKEN Pharmaceutical for $100 million, with the transaction expected to close in the first half of 2025 [11][12] - Aadi has announced a PIPE financing of$100 million to support its operations and fund clinical data for the ADC portfolio [3][14] License Agreement Details - Aadi is granted exclusive rights to patents and know-how for three preclinical ADC programs targeting PTK7, MUC16, and SEZ6, with an upfront payment of $44 million [2] - Cumulative development milestone payments could reach up to$265 million, and commercial milestone payments could total up to $540 million, along with single-digit royalties on sales [2] PIPE Financing - Aadi's PIPE financing is expected to yield gross proceeds of approximately$100 million, selling 21,592,000 shares at $2.40 per share, representing a 3.4$25.2 million in revenue over the past four quarters [11][12] - The sale is expected to provide Aadi with necessary capital to fund operations into late 2028 [14] Board Appointment - Baiteng Zhao, co-founder of ProfoundBio, has been appointed to Aadi's Board of Directors, bringing significant ADC expertise [15][16] - Zhao's experience includes a successful track record in ADC development, which will be instrumental for Aadi's future initiatives [17]