Aadi terminates 80% of staff after registrational Phase II trial fails

Aadi Biosciences is implementing cost-saving measures after halting its registrational Phase II PRECISION1 trial for the mTOR inhibitor nab-sirolimus. The Independent Data Monitoring Committee (IDMC) advised discontinuing the trial, as it was unlikely to meet the efficacy threshold for accelerated approval. Additionally, Aadi is pausing enrollment in two other Phase II trials of nab-sirolimus for endometrial cancer and neuroendocrine tumors.

To conserve cash, Aadi will reduce its R&D workforce by 80%, extending its cash runway into the second half of 2026. The company reported $78.6 million in cash reserves as of June 30, 2024. The announcement, made after market close on August 20, caused Aadi’s stock to drop over 30% in premarket trading.

Previously, interim data from PRECISION1 had also negatively impacted Aadi’s stock. The company plans to focus on commercializing Fyarro, nab-sirolimus’s FDA-approved therapy for PEComa, which generated $24.4 million in sales last year.