Aadi Bioscience, Inc. (AADI)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 revenue was $7.24M, essentially flat sequentially (+0.4% QoQ) and up 14.4% YoY; GAAP net loss was $18.27M and GAAP EPS was -$0.67, reflecting higher R&D and SG&A as the company pivoted to ADCs .
• The company relaunched as Whitehawk Therapeutics, in-licensed three ADC assets (PTK7, MUC16, SEZ6), and executed a $100M PIPE; cash and investments at 12/31/24 were $47.24M, with post-close cash expected to be $170–$180M and runway guided to 2028, a material extension from prior quarters .
• FYARRO Q4 sales were $7.2M; momentum in the FYARRO business continued through Q3, but management executed a strategic divestiture to Kaken, consistent with the ADC-focused transformation, pending close in 1H25 .
• Guidance pivoted to ADC IND timelines: management aims to file three U.S. INDs within 15 months (HWK-007 2H25; HWK-016 by YE25), with a stated goal to reach meaningful Phase 1 data for all three programs under current funding, a key stock catalyst path for 2025–2026 .
• Consensus estimates from S&P Global were unavailable for AADI; beat/miss assessment vs Street cannot be determined. We attempted to retrieve EPS and revenue consensus, but SPGI mapping for AADI was missing [GetEstimates error].

What Went Well and What Went Wrong

What Went Well

• Transformation executed: name change to Whitehawk Therapeutics, ADC in-licensing (PTK7, MUC16, SEZ6), and $100M PIPE financing — “a transformative moment as we reintroduce ourselves as Whitehawk… swiftly advance our portfolio of promising ADC assets” .
• Cash runway materially extended: post-transactions cash guided to $170–$180M and runway into 2028, enabling INDs and Phase 1 data inflections; “we expect to have cash and cash equivalents in the range of $170–$180 million… cash will fund operations into 2028” .
• FYARRO commercial execution through Q3: net product sales of $7.2M (+17% QoQ, +21% YoY) and ~90% reorder rate; Q4 FYARRO sales were $7.24M (+14.4% YoY), sustaining revenue while executing the strategic pivot .

What Went Wrong

• Operating leverage deteriorated in Q4: SG&A rose to $11.05M and R&D to $14.35M, driving a wider net loss of $18.27M and EPS -$0.67, vs Q3 net loss $12.55M; increased costs reflect ADC in-process R&D and legal/consulting expenses .
• Clinical program shifts and wind-down: PRECISION1 was wound down, with patients transitioned to expanded access; while strategic, it removes a nearer-term data catalyst from legacy programs .
• Estimates visibility lacking: S&P Global consensus mapping for AADI was unavailable, limiting ability to benchmark results vs Street and complicating external expectations tracking [GetEstimates error].

Financial Results

Quarterly Income Statement Summary (USD Millions, unless noted)

Notes:

• Gross profit and margin are calculated from revenue minus COGS using reported figures (citations to source line items provided).

Revenue Trajectory and Comparisons

Segment/Product Breakdown (FYARRO)

KPIs and Balance Sheet Highlights

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Today marks a transformative moment as we reintroduce ourselves as Whitehawk Therapeutics… Our goal is to bring all three assets to IND in the next 15 months… our robust balance sheet will enable us to see these three assets through early clinical inflections.” — David Lennon, CEO .
• “We ended 2024 with $47.2 million in cash, cash equivalents and short-term investments… Following the close… we expect to have cash… $170–$180 million… FYARRO net product sales were $7.2 million for the fourth quarter (+14% YoY).” — Scott Giacobello, CFO .
• “We are advancing 3 clinically validated tumor targets using next-generation ADC technology with the goal of outperforming first-generation predecessors… file 3 U.S. INDs within 15 months… fund operations into 2028.” — David Lennon, CEO .

Q&A Highlights

• Modality differentiation: Management contrasted MUC16-targeted ADC vs Regeneron’s CD3 bispecific TCE, highlighting potential avoidance of cytokine release syndrome and benefits of stable linker technology in their ADC approach .
• Target prevalence and expression: PTK7 broadly and deeply expressed across multiple cancers; MUC16 increases with disease progression and can be monitored via CA125; SEZ6 expressed across small cell lung cancer, with AbbVie’s SEZ6 ADC noted; management aims for meaningful Phase 1 data for all three programs within current funding .

Estimates Context

• We attempted to retrieve S&P Global consensus for Q4 2024 EPS and revenue, but SPGI mapping for AADI was unavailable; as a result, beat/miss vs Street cannot be assessed [GetEstimates error].

Key Takeaways for Investors

• The strategic pivot is complete: Whitehawk is now an ADC-focused company with three preclinical assets and clear IND timelines, shifting the investment narrative from FYARRO to oncology ADC platform execution .
• Liquidity is a differentiator: $100M PIPE plus FYARRO sale proceeds extend runway to 2028, reducing near-term financing risk and enabling multiple clinical catalysts across 2025–2026 .
• Near-term operating losses reflect investment in ADC pipeline: Elevated Q4 SG&A and R&D should be evaluated in context of portfolio build; watch for expense normalization post-divestiture .
• Catalysts: IND filings (HWK-007 2H25; HWK-016 by YE25), initial Phase 1 data, and clarity on FYARRO transaction close; stock likely reacts to timely execution and early efficacy/safety signals .
• Competitive positioning: Management emphasizes advanced linker-payload (TOPO1, CPT113) and target selection vs first-gen ADC benchmarks; track differentiation vs emerging competitors (e.g., Regeneron MUC16 bispecific, AbbVie SEZ6 ADC) .
• Estimates visibility gap: With consensus unavailable, monitor company-provided milestones and internal metrics rather than Street beat/miss dynamics until coverage improves [GetEstimates error].

Appendix: Source Documents

• Q4 2024 earnings call transcript (Whitehawk Therapeutics; formerly Aadi) .
• Q4/FY 2024 8-K and press release (Ex. 99.1), including condensed financial statements .
• Q3 2024 press release (financials and commercial metrics) .
• Q2 2024 press release (financials and pipeline update) .
• ADC portfolio transformation and financing press release (Dec 19, 2024) .