Aadi Bioscience to Sell Fyarro and Infrastructure for $100M

Aadi Bioscience has agreed to sell its subsidiary, including the cancer treatment drug Fyarro and associated infrastructure, to Kaken Pharmaceutical for $100M. The transaction is expected to close in 1H25, subject to certain conditions. The deal is expected to fund Aadi's operations into late-2028.

Aadi Bioscience (NASDAQ: AADI) recently announced a significant transaction that is set to transform its financial landscape. The company has entered into an agreement to sell its subsidiary, including the promising cancer treatment drug Fyarro and associated infrastructure, to Kaken Pharmaceutical for $100 million [1]. This strategic move is expected to close in the first half of 2025, subject to certain conditions, and will provide Aadi with the necessary funds to sustain its operations into late 2028 [1].

The transaction is part of a larger deal that includes an exclusive license for a three-asset portfolio of preclinical antibody-drug conjugates (ADCs) from WuXi Biologics and HANGZHOU DAC Biotechnology [1]. Aadi will pay an aggregate of $44 million for the in-licensing of these ADC programs, which target Protein Tyrosine Kinase 7 (PTK7), Mucin-16 (MUC16), and Seizure Related 6 Homolog (SEZ6) [1]. The company is also obligated to pay cumulative development milestone payments of up to $265 million, cumulative commercial milestone payments of up to $540 million, and single-digit royalties of sales [1].

To support this transaction, Aadi has entered into a private investment in public equity (PIPE) financing with qualified institutional buyers and accredited investors, resulting in gross proceeds of approximately $100 million [1]. The company is selling an aggregate of 21,592,000 shares of its common stock at a price of $2.40 per share, representing a premium of approximately 3.4% to the closing price on December 19, 2024, on Nasdaq [1].

This strategic move by Aadi Bioscience is expected to provide the company with the necessary funds to sustain its operations and fund the anticipated clinical data for its ADC portfolio. With the expertise of WuXi Biologics and HANGZHOU DAC Biotechnology, Aadi is well-positioned to bring these promising therapies to market and continue its growth in the competitive biopharmaceutical industry.

References:
[1] Aadi Bioscience Transforms with In-Licensing of Novel ADC Portfolio, $100 Million Sale of FYARRO® and $100 Million Pipe Financing. (2024, December 19). Retrieved from https://www.biospace.com/press-releases/aadi-bioscience-transforms-with-in-licensing-of-novel-adc-portfolio-100-million-sale-of-fyarro-and-100-million-pipe-financing/