On Thursday, Aadi Bioscience, Inc. (NASDAQ:AADI) entered into an exclusive license agreement for the development and global commercialization of a three-asset portfolio of preclinical antibody-drug conjugates (ADCs), in collaboration with WuXi Biologics and Hangzhou DAC Biotechnology Co., Ltd.
Per the terms of the license agreement, Aadi is granted exclusive rights to certain patents and know-how pertaining to three preclinical ADC programs leveraging Hangzhou DAC's CPT113 linker payload technology.
Also Read: Cancer Player Aadi Bioscience Downgraded: Analyst Highlights 'Worse Than Expected' Response Rates.
Aadi will pay aggregate upfront payments of $44 million for in-licensing such ADC programs.
Additionally, Aadi will pay cumulative development milestone payments of up to $265 million, cumulative commercial milestone payments of up to $540 million, and single-digit sales royalties.
To support this transaction, Aadi entered into a subscription agreement with certain qualified institutional buyers and accredited investors for a private investment in public equity financing of approximately $100 million.
The company is selling 21.59 million shares at $2.40 per share.
In August, Aadi Bioscience announced it would halt the registration-intended PRECISION1 trial of nab-sirolimus in patients with solid tumors harboring TSC1 or TSC2 inactivating alterations.
An analysis by the Independent Data Monitoring Committee demonstrated that the study was unlikely to exceed an efficacy threshold necessary to support an accelerated approval, the key goal of this Phase 2 study.
Price Action: AADI stock is up 24.1% at $2.87 during the premarket session at last check Friday.
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