Financial Performance - FYARRO generated net product sales of $7.1 million for Q1 2025, compared to $5.4 million in Q1 2024, reflecting a 31.6% year-over-year increase[153]. - The company recorded net income of $73.0 million for the three months ended March 31, 2025, primarily due to a gain on the sale of FYARRO, compared to a net loss of $18.3 million for the same period in 2024[179][187]. - Product sales for FYARRO were $7.1 million for the three months ended March 31, 2025, an increase of $1.7 million from $5.4 million in the same period in 2024, driven by stronger demand[180]. - Total operating expenses decreased to $22.4 million for the three months ended March 31, 2025, from $24.9 million in the same period in 2024[179]. - Research and development expenses decreased to $8.8 million for the three months ended March 31, 2025, down from $13.6 million in 2024, primarily due to reduced personnel and clinical development costs[183]. - Selling, general and administrative expenses increased to $12.8 million for the three months ended March 31, 2025, from $10.6 million in 2024, largely due to higher consulting and insurance expenses related to the divestiture of FYARRO[181]. - The accumulated deficit as of March 31, 2025, was $259.6 million, reflecting ongoing losses primarily from research and development and operational costs[187]. - The company expects to continue incurring significant expenses and operating losses in the foreseeable future due to ongoing research and development activities[167][187]. Divestiture and Acquisitions - The FYARRO Divestiture resulted in a cash payment of $102.4 million to the company from KAKEN for the acquisition of Aadi Subsidiary, closing on March 25, 2025[153]. - The divestiture of FYARRO was completed on March 25, 2025, and the company no longer commercializes this product[169]. Research and Development - The company plans to submit three IND applications to the FDA by mid-2026, targeting solid tumors, cancers of female origin, and neuroendocrine cancers[150]. - The company anticipates pursuing multiple cancer indications with high potential in large patient populations through its ADC pipeline[150]. - The company plans to increase investment in research and development related to ADC Therapies, with upfront non-refundable license fees of $6.0 million and $38.0 million paid to WuXi Biologics in 2024 and 2025, respectively[169]. - The company has ongoing contracts for research and development activities, which can be modified or canceled with written notice[205]. Financing Activities - The 2024 PIPE Financing raised $94.5 million through the sale of 21,592,000 shares at $2.40 each and 20,076,500 pre-funded warrants[156]. - The company entered into a Sales Agreement with Cowen for an "at the market offering" of common stock with gross proceeds of up to $75.0 million, with no shares sold as of March 31, 2025[189]. - The Shelf Registration Statement allows the company to sell up to $150.0 million of various securities, providing flexibility for future capital needs[191]. - The 2022 PIPE Financing resulted in the sale of 3,373,526 shares at $12.50 per share, generating net proceeds of $72.2 million after expenses[192]. - Cash provided by financing activities included $100.0 million from the sale of common stock and pre-funded warrants to the 2024 PIPE Investors[200]. Leadership and Organizational Changes - The company appointed David Dornan, PhD, as Chief Scientific Officer, bringing over 20 years of oncology drug discovery experience[155]. - The company changed its name from Aadi Bioscience, Inc. to Whitehawk Therapeutics, Inc. on March 18, 2025, following the FYARRO Divestiture[156]. Cash Flow and Investments - As of March 31, 2025, the company had $231.1 million in cash, cash equivalents, and short-term investments, which is expected to support operations until 2028[167]. - For the three months ended March 31, 2025, cash used in operating activities was $11.9 million, with a net income of $73.0 million and $85.6 million in non-cash adjustments[196]. - Cash provided by investing activities for the same period was $115.5 million, primarily from the sale of business and maturities of short-term investments[194]. - The company entered into a License Agreement with WuXi Biologics, paying $6.0 million and $38.0 million for exclusive rights to certain patents and know-how[206]. Rent and Lease Expenses - The company recorded rent expenses of $0.1 million for both the Pacific Palisades and Morristown leases for the three months ended March 31, 2025[203].
Aerpio Pharmaceuticals(AADI) - 2025 Q1 - Quarterly Report