Aadi Bioscience gains on licensing agreement for cancer drugs

WuXi Biologics (Cayman)

20/12/2024 11:20

** Shares of Aadi Bioscience  AADI.O  rise about 40% to
$3.25 in premarket trading
    ** AADI says that it entered into an agreement with
China-based biotech firms WuXi Biologics  2269.HK  and HANGZHOU
DAC to develop and potentially sell three experimental
antibody-drug conjugates (ADCs) treatments 
        ** AADI will pay $44 mln upfront and $805 mln in
milestone payments under the agreement to the firms 
  
    ** Separately, company is selling its FDA-approved cancer
treatment, Fyarro, to KAKEN Pharmaceutical  4521.T  for $100 mln
    ** AADI expected to raise about $100 mln through private
investment in public equity (PIPE) financing 
        ** Proceeds from the sale of the cancer drug and PIPE
financing are expected to fund company's operations into late
2028 - AADI 
  
    ** As of last close, stock has risen about 15% YTD

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com;))