GICS Sector : Healthcare
Aadi Bioscience, Inc., a clinical-stage biopharmaceutical company, engages in developing and commercializing precision therapies for genetically defined cancers with alterations in mTOR pathway genes.Its lead drug candidate, FYARRO is a form of sirolimus bound to albumin.Aadi is evaluating FYARRO in cancers with known mTOR pathway activation, including tumor agnostic indications targeting specific genomic alterations that activate the mTOR pathway.
Whitehawk Therapeutics, formerly Aadi Biosciences, reported its fourth quarter and full-year 2024 earnings, showcasing a mix of financial performance and strategic progress. The company ended the year with $47.2 million in cash and expects to bolster its balance sheet to $170-180 million post-transactions, providing a runway into 2028. However, the net loss widened to $18.3 million for the quarter and $63.7 million for the year, reflecting increased R&D expenses tied to its in-licensing agreements. On the positive side, FYARRO sales grew 14% in Q4 and 7% for the full year, demonstrating continued momentum in its commercial franchise.
Publication Date: May -04
Whitehawk’s transformation into a next-generation antibody-drug conjugate (ADC) platform is underway, with a focus on three promising candidates: HWK-007, HWK-016, and HWK-206. These assets target PTK7, MUC16, and SEZ6, respectively, addressing large cancer populations with potentially higher therapeutic indices. Management highlighted the improved efficacy of its novel TOPO1 payload and stable linker chemistry, which have shown a 16-45% improvement in objective response rates compared to first-gen ADCs. As Dr. Dave Lennon noted, “Our ADC portfolio is designed to target validated tumor biology with minimal off-target toxicity, positioning us for significant clinical benefits across multiple cancer types.”</h6> <h6>Competitive Positioning and Market Opportunity</h6> <p>Whitehawk’s focus on less competitive targets such as PTK7, MUC16, and SEZ6 is a strategic differentiator. PTK7 is broadly expressed in multiple cancers, while MUC16’s expression increases with disease progression in gynecological cancers, offering a clear biomarker strategy. SEZ6, meanwhile, has shown high expression in small cell lung cancer, as evidenced by AbbVie’s program. With plans to file three U.S. INDs in the next 15 months, Whitehawk is well-positioned to be first or second to market in these indications, enhancing its competitive edge.
Whitehawk’s valuation metrics reflect its growth potential and strategic transformation. The company currently trades at a P/S ratio of 3.11 and an EV/EBITDA of -0.83, indicating a premium for its pipeline and platform. With a cash runway extending into 2028, Whitehawk has the financial flexibility to advance its ADC portfolio without near-term funding pressures. Analysts estimate 7.9% revenue growth for next year, though the company’s actual EPS of -0.67 fell short of consensus estimates of -0.3, reflecting higher R&D investments.
Aadi Bioscience Relaunches as Whitehawk Therapeutics Marking Evolution into ADC Company
Mar -18
Aadi Bioscience to Report Fourth Quarter and Full-Year 2024 Results and Corporate Update
Mar -14
Aadi Bioscience, Inc. (AADI) Expected to Beat Earnings Estimates: Should You Buy?
Mar -05
Aadi Bioscience Announces Closing of $100 Million PIPE Financing
Mar -04
Aadi Bioscience Announces Approval of All Proposals at Special Meeting of Stockholders
Mar -03
All You Need to Know About Aadi Bioscience (AADI) Rating Upgrade to Buy
Feb -26
Aadi Bioscience to Present at the TD Cowen 45th Annual Healthcare Conference
Feb -24
Aadi Bioscience Appoints David Dornan, PhD, as Chief Scientific Officer
Feb -18
Growing incidence of rare tumors, increasing adoption of targeted therapies, and FYARRO's potential to address unmet medical needs in malignant PEComa and other rare tumors drive the market growth.
AYVAKIT is an oral tyrosine kinase inhibitor for the treatment of gastrointestinal stromal tumors (GIST) and other cancers.
FYARRO is an mTOR inhibitor for the treatment of advanced malignant perivascular epithelioid cell tumors (PEComa).
Nemtab is an oral, small molecule inhibitor of the enzyme glutaminase, which is expected to be developed for the treatment of various cancers.
Aadi Bioscience, Inc. has a moderate threat of substitutes due to the availability of alternative treatments for rare cancers.
Aadi Bioscience, Inc. has a low bargaining power of customers due to the lack of alternative treatment options for rare cancers.
Aadi Bioscience, Inc. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for raw materials.
Aadi Bioscience, Inc. has a high threat of new entrants due to the growing demand for rare cancer treatments and the availability of funding for biotech startups.
Aadi Bioscience, Inc. operates in a highly competitive industry with multiple players vying for market share in the rare cancer treatment space.
| Value | |
|---|---|
| Debt Weight | 6.26% |
| Debt Cost | 3.95% |
| Equity Weight | 93.74% |
| Equity Cost | 7.49% |
| WACC | 7.26% |
| Leverage | 6.68% |
Value: 7.4
Growth: 8.0
Quality: 7.0
Yield: 0.0
Momentum: 10.0
Volatility: 1.0
1-Year Total Return ->
Value: 7.8
Growth: 4.8
Quality: 3.0
Yield: 0.0
Momentum: 6.0
Volatility: 3.0
1-Year Total Return ->
Value: 8.0
Growth: 5.4
Quality: 4.5
Yield: 0.0
Momentum: 3.5
Volatility: 2.0
1-Year Total Return ->
Value: 8.0
Growth: 5.4
Quality: 6.0
Yield: 0.0
Momentum: 2.0
Volatility: 1.3
1-Year Total Return ->
Value: 9.6
Growth: 5.4
Quality: 5.2
Yield: 0.0
Momentum: 0.5
Volatility: 2.0
1-Year Total Return ->
Value: 9.4
Growth: 2.3
Quality: 4.9
Yield: 0.0
Momentum: 0.5
Volatility: 0.7
1-Year Total Return ->