Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 146

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 146
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 criteria for validating ADC targets established by the Strategic Transaction Committee, Aadi’s management team centered in on three assets of WuXi Biologics,
targeting each of PTK7, MUC16 and SEZ6. Given that the preclinical status of these programs and length of time to clinical trials would be critical to understanding value, representatives of Aadi engaged in discussions with Wuxi Biologics to
determine the specific status of each program and determine timing to human clinical studies, and to assess the likelihood of delivering these programs to human trials in the timeline preferred by Strategic Transaction Committee.

On August 6, 2024, the Strategic Transaction Committee held a meeting to discuss strategic opportunities with Aadi’s management team. At the
meeting, Aadi’s management presented the potential opportunity to in-license from Wuxi Biologics a portfolio of three preclinical ADC assets leveraging Hangzhou DAC’s CPT113 linker-payload technology
targeting the ADC Programs, each of PTK7, MUC16 and SEZ6. The Strategic Transaction Committee and Aadi’s management team discussed, among other things, the characteristics of the ADC Programs; the investment thesis and diversified value
proposition with respect to acquiring the ADC Programs; the timing of clinical milestones; transaction considerations and indicative deal terms to be included in a proposed non-binding term sheet; and
financing strategy in connection with the opportunity. As presented by management, the non-binding term sheet would include the following key terms and conditions: an upfront payment of $40 million; up to
an aggregate of $251 million in clinical milestone payments, including up to $11 million in near-term clinical milestones; up to an aggregate of $540 million in commercial milestone payments; running royalties during the agreed upon
royalty term ranging from low-single-digit to upper-single-digit percentages of annual net sales of licensed products in the agreed upon territory; and an exclusivity period lasting through September 23,
2024. Following discussion, the Strategic Transaction Committee confirmed that it

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was supportive of the management team presenting to Aadi’s board of directors regarding the delivery of a non-binding term sheet to WuXi Biologics on
the terms presented and conducting confirmatory due diligence on the ADC Programs. At this time, the Strategic Transaction Committee and Aadi’s management team deprioritized all strategic opportunities under consideration other than the
potential transaction with WuXi Biologics in respect of the ADC Programs.

On August 8, 2024, Aadi’s