Aadi Bioscience signs license agreement for ADC portfolio

Aadi Bioscience (AADI) has entered into an exclusive license agreement for development and global commercialization of a three-asset portfolio of preclinical, next-wave antibody-drug conjugates, or ADCs, in collaboration with WuXi Biologics, a global Contract Research, Development and Manufacturing Organization, and Hangzhou DAC. 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 targeting each of Protein Tyrosine Kinase 7 or PTK7, Mucin-16 or MUC16 and Seizure Related 6 Homolog or SEZ6. Aadi will pay aggregate upfront payments of $44M for in-licensing such ADC programs. Additionally, Aadi is obligated to pay cumulative development milestone payments of up to $265M, cumulative commercial milestone payments of up to $540M and single-digit royalties of sales. 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, or PIPE, financing that is expected to result in gross proceeds of approximately $100M, before deducting placement agent fees and other offering expenses. The syndicate was led by Ally Bridge Group. The PIPE financing is expected to close in 1H25, subject to stockholder vote and satisfaction of customary closing conditions.