Company: WHWK
Filing Date: 2025-01-21
Form Type: PREM14A
Source: 0001193125-25-009599
Chunk: 104

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-21
Form: PREM14A
Chunk 104
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 to Aadi pursuant to the Divestiture
Agreement is $100 million on a cash-free and debt-free basis, subject to certain adjustments set forth in the Stock Purchase Agreement. Leerink Partners expressed no opinion as to any such adjustments. For purposes of its analysis and opinion,
Leerink Partners utilized the stated consideration of $100 million.

Discounted Cash Flow Analysis

A discounted cash flow analysis is a traditional valuation methodology used to derive a valuation of an asset or set of assets by calculating
the “present value” of estimated future cash flows of the asset or set of assets. “Present value” refers to the current value of future cash flows or amounts and is obtained by discounting those future cash flows or amounts by a
discount rate that takes into account assumptions and estimates of risk, the opportunity cost of capital, expected returns and other appropriate factors, and then adding the present value equivalent of the terminal value of the business at the end
of the applicable projection period. A discounted cash flow analysis is a widely accepted valuation methodology for biotechnology companies. For purposes of its discounted cash flow analysis, at the direction of Aadi, Leerink Partners relied upon
the Aadi Projections. Leerink Partners was advised by Aadi, and assumed, at Aadi’s direction, that the Aadi Projections were reasonably prepared on bases reflecting the best currently available estimates and judgments of the management of Aadi
as to the matters covered thereby. The Aadi Projections, which Aadi management directed Leerink Partners to use in deriving its financial analyses, include cash flows through 2039, which is the year that Aadi management assumed patent protections
for FYARRO will expire. Aadi advised Leerink Partners that it believed it was reasonable to forecast revenues through the patent life of FYARRO.

Leerink Partners’ discounted cash flow analysis calculated the estimated present value of the stand-alone, unlevered, after-tax free cash flows that FYARRO was forecasted to generate from January 1, 2025, through December 31, 2039, which unlevered, after-tax free cash flows were
derived from the Aadi Projections. Leerink Partners estimated the net present value of unlevered, after-tax free cash flows after fiscal year 2039 by assuming an annual decline of 50% of such cash flows in
perpetuity. These cash flows were discounted to present value as of December 31, 2024, using a discount rate ranging from 10% to