Aadi Bioscience, Inc. (AADI): BCG Matrix [Dec-2025 Updated]

You want to know where Aadi Bioscience, Inc. (now Whitehawk Therapeutics, Inc.) sits on the BCG Matrix, and the honest answer is that the entire company just cleared the board, fundamentally resetting its portfolio in early 2025. The strategic pivot means the former Cash Cow, FYARRO, is gone-sold for $100 million-and the Dogs were cut, so the business now consists almost entirely of Question Marks, which are high-risk, high-reward bets. This dramatic shift, fueled by a $100 million PIPE financing and a $44 million upfront payment for three pre-clinical Antibody-Drug Conjugates (ADCs), transforms the company from a commercial biotech with limited growth into a pure-play, clinical-stage oncology play, defintely a new profile for investors to analyze.

Background of Aadi Bioscience, Inc. (AADI)

You need to understand that Aadi Bioscience, Inc. (AADI) isn't the same company it was a year ago. As of March 2025, the company completed a massive strategic pivot, changing its name to Whitehawk Therapeutics, Inc. and its ticker to WHWK. The original Aadi Bioscience was a commercial-stage precision medicine company, founded in 2008, focused on developing therapies for cancers driven by alterations in the mTOR pathway (mammalian target of rapamycin), a critical cell growth regulator.

Its primary asset and sole commercial product was FYARRO (nab-sirolimus), an albumin-bound nanoparticle formulation of sirolimus. The U.S. Food and Drug Administration (FDA) approved FYARRO in November 2021 for treating adult patients with locally advanced unresectable or metastatic malignant perivascular epithelioid cell tumor (PEComa), a very rare, aggressive cancer. FYARRO was the only FDA-approved therapy for this ultra-rare indication, giving it a unique market position.

However, the company's financial profile showed the challenge of commercializing an ultra-orphan drug. For the full-year ended December 31, 2024, the company generated total revenue of $26.0 million from FYARRO sales, but still reported a significant net loss of $63.7 million. Honestly, that kind of burn rate isn't sustainable long-term without a massive pipeline.

So, the big shift happened in the first half of 2025. Aadi Bioscience sold the entire FYARRO business, including the drug and associated infrastructure, to KAKEN Pharmaceutical Co., Ltd. for $100 million in cash. Simultaneously, the company raised another $100 million through a Private Investment in Public Equity (PIPE) financing and in-licensed a new portfolio of three preclinical Antibody-Drug Conjugates (ADCs). This transformation means the company, now Whitehawk Therapeutics, is effectively a new entity, trading a small, commercial-stage asset for a large cash reserve and a high-risk, high-reward preclinical pipeline focused on next-generation oncology.

Aadi Bioscience, Inc. (AADI) - BCG Matrix: Stars

Aadi Bioscience, Inc. has no product or business unit that qualifies as a Star in the Boston Consulting Group (BCG) Matrix as of the 2025 fiscal year. A Star requires both high relative market share and high market growth, but the company completed a strategic pivot in the first half of 2025, divesting its only commercial asset to fully focus on an early-stage portfolio.

The company's strategy shifted from a commercial-stage entity with one approved drug, FYARRO, to a preclinical-stage oncology company centered on next-generation Antibody-Drug Conjugates (ADCs). This means all current assets are in the high-growth market (ADCs are a major oncology trend), but they possess a zero market share because they are not yet commercialized. Honestly, the entire business is now a high-potential Question Mark, not a Star.

The Divestiture of Commercial Assets

The core reason Aadi Bioscience, Inc. lacks a Star is the sale of its commercial business. In a transformative move, the company sold FYARRO, which was approved for malignant perivascular epithelioid cell tumor (PEComa), and its associated infrastructure to Kaken Pharmaceutical for $100 million in cash. This transaction, approved by stockholders in February 2025 and expected to close in the first half of 2025, removed the only source of commercial revenue and, therefore, the only product capable of holding a market share.

To be fair, the sale was a necessary step to fund the future. FYARRO's cumulative revenue over the four quarters ended September 30, 2024, was $25.2 million. Selling it for four times that annual run-rate provided immediate, non-dilutive capital to fuel the new strategic direction. Plus, the company secured an additional $100 million in a Private Investment in Public Equity (PIPE) financing, giving them a cash runway that is projected to extend into late-2028.

The Preclinical ADC Portfolio

The new focus is a three-asset portfolio of preclinical, next-wave Antibody-Drug Conjugates (ADCs) in-licensed from WuXi Biologics and HANGZHOU DAC. While the ADC market is defintely a high-growth area in oncology, these assets-targeting Protein Tyrosine Kinase 7 (PTK7), Mucin-16 (MUC16), and Seizure Related 6 Homolog (SEZ6)-are not yet in human clinical trials, let alone generating sales. They are pure research and development investments.

Here's the quick math: A Star needs high market share to generate significant cash, but these assets are consuming cash for upfront payments of $44 million and future development milestones. What this estimate hides is the potential: if one of these ADCs makes it to market and captures a large share, it could become a Star, but that is years away. For now, they are high-risk, high-reward ventures.

• No current revenue stream from the new assets exists.
• Upfront licensing payments totaled $44 million.
• Potential future milestone payments could reach up to $805 million.
• The focus is on clinical data readouts expected by late-2028.

The strategic action is clear: you must value Aadi Bioscience, Inc. based on its pipeline's net present value (NPV) and its cash position, not on current commercial performance. The Star category is empty for now, but the company is spending to buy into a new, high-growth market. Finance: Model the ADC pipeline's probability-adjusted NPV by the end of the quarter.

Aadi Bioscience, Inc. (AADI) - BCG Matrix: Cash Cows

You're looking for a reliable, high-margin asset that funds the rest of the business-the classic Cash Cow. Honestly, Aadi Bioscience, Inc. (now operating as Whitehawk Therapeutics) has no Cash Cow as of the 2025 fiscal year. The sole revenue-generating product, FYARRO (nab-sirolimus) for PEComa, was strategically divested to Kaken Pharmaceutical in a Q1 2025 transaction. This move eliminated the recurring revenue stream that defines a Cash Cow, but it did provide a substantial, one-time cash infusion to pivot the company's focus.

A true Cash Cow is a market leader in a low-growth market, generating significant free cash flow with minimal reinvestment. FYARRO was a commercial product, but Aadi Bioscience was still operating at a significant net loss. Their full-year 2024 revenue from the product was only $26.0 million, which was insufficient to cover their operating expenses, leading to a net loss of $63.7 million for the year. The sale was a necessary financial maneuver to secure the company's runway, not the passive milking of a mature, profitable asset.

The FYARRO Divestiture: Trading Revenue for Runway

The decision to sell FYARRO was a clear, calculated trade-off: immediate cash for future potential. The product had a high market share in the niche malignant perivascular epithelioid cell tumor (PEComa) market, but its growth prospects were limited after the failure of the broader solid tumor trial (PRECISION1). So, the company monetized the asset, securing a massive cash injection that fundamentally changed its financial profile. This one-time cash is now the fuel, not the perennial income source.

Here's the quick math on the pivot:

• FYARRO was sold to Kaken Pharmaceutical for a headline price of $100 million in Q1 2025.
• The final cash payment, following purchase price adjustments, was approximately $102.4 million.
• This cash, plus a separate $100 million Private Investment in Public Equity (PIPE) financing, created a new cash reserve expected to be between $170 million and $180 million.
• This new cash position is projected to fund operations into late 2028, giving the company a long runway for its new Antibody-Drug Conjugate (ADC) pipeline.

Financial Impact of the Cash Cow Exit

The divestiture means Aadi Bioscience is now a preclinical-stage company again, focused on developing novel oncology therapies. This strategic shift means the recurring revenue line is gone, but the capital expenditure for commercial infrastructure is also eliminated. The Cash Cow concept simply doesn't apply to a company that has intentionally sold its only commercial product to fund high-risk, high-reward research and development (R&D). The focus is now on turning their new ADC programs into future Stars, not on maintaining a current Cash Cow. This was a defintely necessary move for survival.

What this estimate hides is the loss of the commercial team and infrastructure, which Kaken Pharmaceutical acquired. The table below shows the stark contrast between the former revenue stream and the capital secured in 2025.

The critical action for you, the investor, is to re-evaluate the company based on its preclinical pipeline and cash runway, not on its former commercial status. The Cash Cow is gone; now it's all about the Question Marks.

Aadi Bioscience, Inc. (AADI) - BCG Matrix: Dogs

The legacy pipeline for nab-sirolimus (Fyarro) in indications other than PEComa are the clearest Dogs. These assets were consuming capital with low probability of success, forcing the company to cut R&D headcount by 80% and pivot entirely. The company made the right call to cut losses and refocus capital on its new Antibody-Drug Conjugate (ADC) pipeline.

These programs represented a classic 'cash trap' scenario: low market share potential in crowded oncology fields and low growth prospects based on clinical data. The decision to halt enrollment and divest these assets was a crucial, albeit painful, move to secure the company's long-term financial health.

PRECISION1 Trial Halted

The most significant Dog was the registration-intended PRECISION1 trial for nab-sirolimus in mTOR inhibitor-naïve malignant solid tumors harboring TSC1 or TSC2 inactivating alterations. An analysis by the Independent Data Monitoring Committee in August 2024 determined the study was unlikely to exceed the efficacy threshold necessary to support an accelerated approval. Continuing this trial would have been a poor capital allocation choice, effectively throwing good money after bad. The company immediately halted the trial, though approximately 25 patients who were still benefiting were transitioned to an expanded access protocol. This action, combined with other cuts, initially extended the cash runway from the fourth quarter of 2025 into at least the second half of 2026.

Paused Phase 2 Trials: EEC and NETs

The two other Phase 2 trials for nab-sirolimus also fall into the Dogs category, as their enrollment was paused to conserve cash. These studies were investigating nab-sirolimus in advanced or recurrent Endometrioid Endometrial Cancer (EEC) in combination with letrozole, and in Neuroendocrine Tumors (NETs). To be fair, the company continued dosing the patients already enrolled, but stopping new enrollment effectively ended the expansion program for these indications. At the time of the pause, the EEC trial had 20 patients enrolled and the NETs trial had 10 patients enrolled, numbers too small to drive significant near-term market share or growth.

Strategic Divestiture and Financial Impact (2025)

The financial impact of shedding these Dogs was immediate and profound, culminating in a radical strategic pivot in the third quarter of 2025. This move transformed Aadi Bioscience, Inc. from a hybrid commercial/R&D entity back into a pure-play research platform focused on its new ADC pipeline. The most telling action was the sale of the FYARRO business segment, which generated an $87.3 million gain and led to the complete cessation of product sales. This single action, which eliminated the commercial focus on the one 'Cash Cow' product (Fyarro in PEComa), underscores just how much the company needed to shed the cash-consuming R&D Dogs to survive and pivot. The R&D workforce was cut by 80% to align with the reduced and refocused nab-sirolimus pipeline.

Here's the quick math on the pivot's impact:

What this estimate hides is the true cost of the legacy R&D burn before the cuts. The elimination of these low-probability programs allowed the company to secure a long-term runway into 2028, a defintely necessary step for a biotech focused on early-stage development. The cash infusion was a direct result of divesting the commercial operations (the former Cash Cow) and the associated R&D liabilities (the Dogs), allowing a fresh start.

Actionable Insight

The lesson here is clear: ruthlessly cut Dogs that fail to meet efficacy thresholds or regulatory requirements, even if it means a complete strategic overhaul. This is a prime example of a biotech company executing a necessary portfolio cleanup to survive.

• Halt enrollment in trials if efficacy signals are weak.
• Divest low-growth assets to generate non-dilutive capital.
• Reallocate capital to high-growth, high-potential programs (in this case, the ADC pipeline).

Aadi Bioscience, Inc. (AADI) - BCG Matrix: Question Marks

The entire new strategic direction of the company, now Whitehawk Therapeutics, Inc., is built around the 'Question Marks' quadrant. This is where the in-licensed portfolio of three pre-clinical Antibody-Drug Conjugates (ADCs) sits. They have zero current market share (low share) but are squarely positioned in the high-growth, high-interest ADC oncology space (high growth). This is a massive, high-risk bet, but it is the only path to becoming a Star.

To fund this pivot, the company executed a series of transactions in early 2025, effectively selling its former commercial asset, FYARRO, for a clean exit and raising fresh capital. The upfront cost for this new future was significant, but the financing secured a long runway. Here's the quick math: the $44 million upfront payment to WuXi Biologics and Hangzhou DAC Biotechnology for the licensing rights was immediately covered by the $100 million Private Investment in Public Equity (PIPE) financing closed in March 2025, plus the $100 million cash from the sale of the FYARRO business. This capital infusion provides an anticipated operational runway extending into late-2028, insulating the company from immediate financial pressures.

The High-Growth, High-Burn Portfolio

The ADC pipeline represents a total potential deal value of up to $849 million if all development and commercial milestones are hit, a staggering figure that underscores the high-stakes nature of this strategic shift. These assets are capital-intensive, which is the hallmark of a Question Mark. You are consuming cash now for the promise of massive future returns. This is defintely reflected in the 2025 financial results.

For the third quarter of 2025, the company reported a net loss of $17.7 million, a widening loss that confirms the cost of advancing a pre-clinical pipeline. Research and Development (R&D) expenses for Q3 2025 surged to $14.3 million, an increase of 43.5% year-over-year, demonstrating the aggressive investment into these programs to push them toward the clinic. The goal is to move these assets quickly from Question Marks to Stars by achieving key milestones.

• High-Growth Market: The Antibody-Drug Conjugate (ADC) market in oncology is one of the fastest-growing segments in biopharma.
• Low Market Share: Zero revenue and zero market share, as all three assets are in the pre-clinical stage.
• High Investment: The total potential value of the licensing deal is up to $849 million.
• Accelerated Burn: Q3 2025 R&D expenses hit $14.3 million, up 43.5% year-over-year.

Strategic Investment Breakdown (2025 Fiscal Year Data)

The three ADC assets utilize Hangzhou DAC Biotechnology's CPT113 linker payload technology, targeting specific, clinically validated tumor proteins. The immediate action is to file Investigational New Drug (IND) applications to start human trials, the critical step to de-risking a Question Mark.

The strategy is clear: invest heavily and fast, or these assets will become Dogs. The company has essentially traded a small, stable Cash Cow (FYARRO) for three high-potential Question Marks, betting everything on the next-generation ADC technology to achieve a dominant market position in the future. The two planned Investigational New Drug (IND) submissions (HWK-007 and HWK-016) by the end of 2025 are the first critical milestones that will either validate the investment or increase the risk of them becoming Dogs.

Next Step: R&D Team: Finalize all Chemistry, Manufacturing, and Controls (CMC) documentation for the HWK-007 and HWK-016 IND submissions by December 15, 2025.