M&A: Aadi Bioscience, Inc.

Form Type: DEFA14A

Filing Date: 2024-12-30

Corporate Action: Acquisition

Type: New

Accession Number: 000119312524286907

Comments: Aadi Bioscience, Inc. has announced several strategic transactions aimed at transforming its operational focus to precision oncology and antibody-drug conjugates (ADCs). The company has entered a definitive agreement to sell its product FYARRO and related infrastructure to Kaken Pharmaceuticals for $100 million, subject to stockholder approval and other conditions, expected to close in the first half of 2025. This sale is at a 4X multiple of FYARRO’s sales over the past year. Simultaneously, Aadi has in-licensed three preclinical ADCs from WuXi Biologics, representing a significant addition to its pipeline in precision oncology. Aadi is investing $44 million upfront for these rights, with potential milestone payments totaling $805 million, including single-digit royalties on sales. To support these initiatives, Aadi has also secured a private investment in public equity (PIPE) financing, raising another $100 million, bringing its total capital significantly. The company is positioned for a cash runway into late 2028, enabling anticipated clinical updates on the new ADC portfolio. The new board member, Baiteng Zhao, reflects the continuous strategic aim to enhance expertise in ADC development and commercialization. Aadi's commitment to deliver effective therapies for difficult-to-treat cancers is reaffirmed through these transformative acquisitions and partnerships.

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