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Aadi Bioscience Transforms with In-Licensing of Novel ADC Portfolio, $100 Million Sale of FYARRO® and $100 Million PIPE Financing
ADCAgree Realty(ADC) Prnewswire·2024-12-19 23:30

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, focusing on preclinical ADC programs targeting PTK7, MUC16, and SEZ6 [1][2] - The company is selling its FYARRO product and associated infrastructure to KAKEN Pharmaceutical for 100million,withthetransactionexpectedtocloseinthefirsthalfof2025[11][12]−AadihasannouncedaPIPEfinancingof100 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 the ADC portfolio development into late 2028 [3][14] License Agreement Details - Aadi will pay 44millioninupfrontpaymentsfortheADCprogramsandisobligatedtopayupto44 million in upfront payments for the ADC programs and is obligated to pay up to 265 million in development milestone payments and up to 540millionincommercialmilestonepayments,alongwithsingle−digitroyaltiesonsales[2]−TheADCassetsutilizeHANGZHOUDAC′sCPT113platform,whichfeaturesastableyetcleavablelinkerdeliveringaTopoisomeraseIinhibitorpayload,positioningthemcompetitivelyamongnext−generationADCplatforms[6][7]FinancialTransactions−ThePIPEfinancinginvolvesthesaleof21,592,000sharesat540 million in commercial milestone payments, along with single-digit royalties on sales [2] - The ADC assets utilize HANGZHOU DAC's CPT113 platform, which features a stable yet cleavable linker delivering a Topoisomerase I inhibitor payload, positioning them competitively among next-generation ADC platforms [6][7] Financial Transactions - The PIPE financing involves the sale of 21,592,000 shares at 2.40 per share, representing a 3.4% premium to the closing price on December 19, 2024 [3][4] - The net proceeds from the PIPE financing and the sale of FYARRO are expected to fund operations into late 2028, including anticipated clinical data readouts for the ADC portfolio [14] Management and Board Changes - Baiteng Zhao, co-founder and former CEO of ProfoundBio, has been appointed to Aadi's Board of Directors, bringing significant expertise in ADC development [15][16] - Zhao expressed optimism about the potential of the ADC targets and the advanced linker-payload platform, indicating Aadi's strong position to impact patient outcomes [17] Product and Market Focus - The ADC portfolio targets tumor markers that are overexpressed in various cancers, including non-small cell lung cancer and cancers of female origin, aiming to improve treatment outcomes [7][8] - The collaboration with WuXi Biologics and HANGZHOU DAC emphasizes the innovative approaches in ADC development, leveraging advanced discovery technologies [10]