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In a significant move, Whitehawk Therapeutics, Inc. has completed the sale of its subsidiary, Aadi Subsidiary, Inc., to KAKEN INVESTMENTS INC. The transaction, which was finalized on Monday, resulted in a cash payment of $102.4 million to Whitehawk Therapeutics following adjustments under the terms of the stock purchase agreement. According to InvestingPro data, this cash injection is crucial as the company has been quickly burning through its cash reserves, despite maintaining more cash than debt on its balance sheet.
The deal, originally announced on December 19, 2024, was part of Whitehawk’s strategic repositioning. The sale aligns with the company’s focus on streamlining operations and concentrating on its core business areas. The cash infusion from the divestiture is expected to provide additional capital for Whitehawk to invest in its ongoing pharmaceutical preparations and research. With a current market capitalization of $48 million and trading at a low revenue multiple, InvestingPro analysis suggests the stock is currently undervalued, with 10+ additional ProTips available for subscribers.
KAKEN INVESTMENTS INC., along with KAKEN PHARMACEUTICAL CO., LTD, are the new owners of the shares of Aadi Subsidiary, Inc. The details of the purchase agreement were disclosed in a prior report filed with the Securities and Exchange Commission on December 20, 2024, which is incorporated by reference into the current report.
As required by SEC regulations, Whitehawk Therapeutics intends to file pro forma financial information reflecting the divestiture’s impact within four business days.
The sale of Aadi Subsidiary, Inc. represents a significant shift for Whitehawk Therapeutics, a Delaware-incorporated company with headquarters in Morristown, New Jersey. The company, which trades under the NASDAQ ticker WHWK, has undergone several name changes in its history, previously known as Aadi Bioscience, Inc., Aerpio Pharmaceuticals (NASDAQ:WHWK), Inc., and ZETA ACQUISITION CORP II.
Investors and stakeholders are keeping a close eye on how this divestiture will shape Whitehawk’s financial landscape and strategic direction moving forward. With a current ratio of 3.59, the company’s liquid assets exceed its short-term obligations, providing some financial flexibility. The information in this article is based on a press release statement from the SEC filing and enhanced with real-time financial metrics from InvestingPro.
In other recent news, Whitehawk Therapeutics, Inc. has completed the sale of its Aadi Subsidiary to Kaken Pharmaceuticals for $100 million. This transaction is part of Whitehawk’s strategic transformation plan and includes the sale of the Aadi Bioscience name, trademarks, and the FYARRO® business. The proceeds from this sale, along with a $100 million private investment in public equity, are expected to fund Whitehawk’s operations into 2028, supporting the development of its antibody drug conjugates (ADCs). Whitehawk’s ADC portfolio, in-licensed from WuXi Biologics (HK:2269), is aimed at addressing limitations in first-generation ADCs and is progressing toward clinical trials.
Additionally, Aadi Bioscience, Inc. has appointed David Dornan, PhD, as its new Chief Scientific Officer. Dr. Dornan brings over 20 years of experience in oncology and ADC development to the company. Aadi is focusing on a next-generation linker-payload platform as part of its strategic shift, which also includes the sale of FYARRO® to Kaken Pharmaceuticals. These developments are expected to advance Aadi’s ADC pipeline, which targets specific proteins in cancer treatment. A Special Meeting of Stockholders is scheduled to discuss the proposed sale and financing.
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