(RTTNews) - Shares of Aadi Bioscience (AADI) were up over 70% at $3.99 in after-hours trading following the announcement of a series of transformative deals.
First is the company's exclusive license agreement for a promising three-asset portfolio of next-wave antibody-drug conjugates (ADCs) with WuXi Biologics and Hangzhou DAC Biotechnology.
As per the agreement terms, Aadi has been granted global development and commercialization rights to three preclinical ADCs targeting PTK7, MUC16, and SEZ6, developed through a collaboration between WuXi Biologics and HANGZHOU DAC.
This deal requires Aadi to make an upfront payment of $44 million for the in-licensing of the ADC programs, along with cumulative development milestone payments of up to $265 million, cumulative commercial milestone payments of up to $540 million, and single-digit royalties on sales.
To facilitate the deal, Aadi has entered into a subscription agreement with certain qualified institutional buyers and accredited investors for private investment in public equity ("PIPE") financing, which is expected to generate gross proceeds of around $100 million.
As part of the PIPE financing, the company is selling an aggregate of 21.59 million shares of its common stock for $2.40 each and pre-funded warrants to purchase up to an aggregate of 20.08 million shares of common stock for $2.3999 per Pre-Funded Warrant share. The PIPE financing is expected to close in the first half of 2025.
In a separate transaction, Aadi's wholly owned subsidiary, Aadi Subsidiary, Inc., will be acquired by Japan-based KAKEN Pharmaceutical Co., Ltd. for $100 million, including all its assets, such as FYARRO.
FYARRO, an FDA-approved drug for the treatment of malignant perivascular epithelioid cell tumor (PEComa), generated net product sales of $7.2 million for the third quarter of 2024, compared to $5.96 million in the year-earlier quarter.
AADI closed Thursday's (Dec.19.2024) trading at $2.32, up 1.31%. In after-hours trading, the stock was up by 71.98% at $3.99.
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