Aadi Bioscience, Inc. reported its financial results for the third quarter of 2024, highlighting a notable increase in product sales and a reduction in net losses compared to the same period in the previous year. For the three months ended September 30, 2024, the company generated total revenue of $7.2 million, up from $5.9 million in Q3 2023, primarily driven by net product sales of its lead product, FYARRO, which amounted to $7.2 million for the quarter. Year-to-date, total revenue reached $18.7 million, slightly higher than $18.0 million for the same period in 2023.
Despite the revenue growth, Aadi Bioscience reported a net loss of $12.5 million for Q3 2024, an improvement from the $16.3 million loss in Q3 2023. The accumulated deficit as of September 30, 2024, stood at $314.4 million. The company’s total operating expenses for the quarter were $20.6 million, down from $23.8 million in the prior year, reflecting a decrease in selling, general, and administrative expenses, which fell to $7.2 million from $11.2 million.
The company’s cash and cash equivalents decreased significantly to $30.5 million as of September 30, 2024, from $62.9 million at the end of 2023. This decline is attributed to cash used in operating activities, which totaled $44.5 million for the nine months ended September 30, 2024, compared to $50.0 million for the same period in 2023. Aadi expects its current cash resources to support operations into the second half of 2026.
Strategically, Aadi Bioscience announced a workforce reduction of approximately 32% in August 2024, resulting in the termination of 22 employees. This decision was made following the halt of the PRECISION1 trial due to interim analysis indicating a low likelihood of meeting efficacy thresholds for accelerated approval. The company is also undergoing a comprehensive strategic review to maximize shareholder value, considering options such as mergers or liquidation.
Additionally, the collaboration with Mirati Therapeutics was mutually terminated in May 2024, leading to the discontinuation of a Phase 1/2 study. The company continues to face challenges in clinical trials, including paused enrollment in two Phase 2 trials for advanced endometrial cancer and neuroendocrine tumors, with initial efficacy signals expected to be assessed in Q4 2024.
Overall, Aadi Bioscience is navigating a complex landscape of clinical development and financial management while focusing on the commercialization of FYARRO, which remains the only mTOR inhibitor approved for advanced malignant PEComa.
About Aadi Bioscience, Inc.
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