Whitehawk sells Aadi Subsidiary to Kaken for $100 million

Published 26/03/2025, 13:06
Whitehawk sells Aadi Subsidiary to Kaken for $100 million

MORRISTOWN, N.J. - Whitehawk Therapeutics, Inc. (NASDAQ: WHWK), a preclinical stage oncology therapeutics company with a current market capitalization of $48 million, announced today the completion of its strategic divestiture of Aadi Subsidiary, Inc. to Kaken Pharmaceuticals. The sale, which includes the Aadi Bioscience name, trademarks, and the FYARRO® business, was finalized for a cash payment of $100 million, along with certain customary adjustments.

The transaction follows Whitehawk’s strategic transformation initiative, which began in December 2024. With the divestiture now concluded, Whitehawk is set to focus on the development of its advanced portfolio of antibody drug conjugates (ADCs). According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt and a current ratio of 3.59x. The company anticipates that the proceeds from the sale, in addition to a recent $100 million private investment in public equity (PIPE) financing, will fund operations into 2028, though InvestingPro analysis indicates the company is currently burning through cash rapidly. This financial runway is expected to support key clinical data readouts for the company’s three ADC assets.

Whitehawk’s ADC portfolio is designed to address the limitations of first-generation ADCs, aiming to improve treatment for patients with difficult-to-treat cancers. These assets, in-licensed from WuXi Biologics, are on track for IND-enabling studies and subsequent clinical trials.

The press release also contains forward-looking statements regarding Whitehawk’s business prospects, including the development timeline of its ADC portfolio and the potential therapeutic benefits and market opportunities of its assets. InvestingPro analysis suggests the stock is currently undervalued, with 3 analysts recently revising their earnings expectations upward for the upcoming period. Subscribers to InvestingPro can access 10 additional ProTips and a comprehensive Pro Research Report for deeper insights into WHWK’s financial health and growth prospects. However, the company acknowledges that actual results may differ due to various risks and uncertainties, such as potential delays in clinical trials and the need for additional financing.

Whitehawk’s financial position, as well as its research and development plans, are detailed in its filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and subsequent Quarterly Reports on Form 10-Q.

This news article is based on a press release statement from Whitehawk Therapeutics, Inc. and does not include any promotional content or endorsement of the company’s claims.

In other recent news, Aadi Bioscience has appointed David Dornan, PhD, as its new Chief Scientific Officer. Dr. Dornan brings over 20 years of experience in oncology and antibody-drug conjugates (ADCs) to the company. This appointment aligns with Aadi’s strategic shift, which includes the sale of FYARRO® to Kaken Pharmaceuticals for $100 million and the in-licensing of an ADC portfolio from WuXi Biologics. Additionally, Aadi is undertaking a $100 million private placement financing to further develop its ADC assets. A Special Meeting of Stockholders is scheduled for February 28, 2025, to discuss these proposed transactions. Dr. Dornan’s previous roles at companies like Elevation Oncology and Genentech, where he contributed to the development of POLIVY®, highlight his expertise in advancing oncology treatments. These recent developments underscore Aadi’s focus on innovative tumor-targeting strategies using a next-generation linker-payload platform. The company’s pipeline aims to target specific proteins such as PTK7, MUC16, and SEZ6 to potentially redefine cancer treatment standards.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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