Commercial-stage biopharmaceutical company Aadi Bioscience announced that it has entered into a private investment in public equity (PIPE) deal valued at $72.5 million.
Aadi, which develops precision therapies for cancers, entered into a securities purchase agreement late last month with a new accredited investor and existing inventors to issue and sell an aggregate of 3,373,526 shares of its common stock at a price of $12.50 per share.
Pre-funded warrants were to also be sold to purchase more than 2.4 million shares of common stock.
The PIPE financing was led by a life sciences-focused investment fund with participation from existing investors including Avoro Capital Advisors, Acorn Capital Advisors, Alerce Medical Technology Partners, Acuta Capital Partners, KVP Capital and members of Aadi’s management team.
“We are extremely pleased to have the support of this investor group,” Dr. Neil Desai, founder and chief executive of Aadi Bioscience, said in a statement. “These additional funds allow us to further extend our cash position into 2025.”
The company is expected to share preliminary data next year on its clinical trials focused on tumor treatments.
Aadi’s lead product is Fyarro, an FDA-approved treatment made to fight cancer cells in advanced malignant PEcoma, a rare disease characterized by soft-tissue tumors. Fyarrio is designed to block one of the signals in the cancer cells that cause PeComa to grow out of control, helping to stop cancer from growing or spreading.
Following FDA approval, Fyarro’s wholesale acquisition cost, the price of a medication set by pharmaceutical manufacturers, was marked at $6,785 for a single-use 100-milligram vial.
