Aadi Bioscience Signs Exclusive ADC Licensing Agreement with WuXi Biologics and HANGZHOU DAC

• Aadi Bioscience has entered an exclusive licensing agreement for a portfolio of preclinical ADCs with WuXi Biologics and HANGZHOU DAC, granting exclusive rights to three ADC programs targeting cancer.

• The company has also secured a $100 million PIPE financing to support this collaboration, which includes $44 million in upfront payments.

Aadi Bioscience, Inc. has entered into a significant licensing agreement with WuXi Biologics and HANGZHOU DAC Biotechnology Co., Ltd., aimed at developing and commercialising a portfolio of next-generation antibody-drug conjugates (ADCs). This collaboration gives Aadi exclusive rights to three preclinical ADC programs, which are designed to target key cancer-related proteins: Protein Tyrosine Kinase 7 (PTK7), Mucin-16 (MUC16), and Seizure Related 6 Homolog (SEZ6).

The agreement grants Aadi access to HANGZHOU DAC’s cutting-edge CPT113 linker payload technology, an advanced ADC platform. As part of the agreement, Aadi will make upfront payments totalling $44 million for the rights to these programs. In addition, the company has committed to milestone payments that could reach up to $265 million during the development phase and up to $540 million in commercial milestone payments, along with royalties on sales.

To fund this licensing agreement, Aadi also announced a private investment in public equity (PIPE) financing, raising approximately $100 million. The PIPE financing includes the sale of 21.6 million shares of Aadi’s common stock, at a price of $2.40 per share, with the offering led by Ally Bridge Group and supported by new and existing investors. The financing is expected to close in the first half of 2025, subject to stockholder approval.

David Lennon, PhD, President and CEO of Aadi Bioscience, expressed his excitement about the deal: “I’m thrilled to announce our partnership with WuXi Biologics and HANGZHOU DAC to bring forward this thoughtfully selected ADC portfolio. With our next wave ADC portfolio, we aim to build upon earlier therapies to deliver improved outcomes for people living with cancer.”