Aadi Bioscience expects that pipeline adjustments and the workforce reduction will extend its cash runway into at least the second half of 2026.
Aadi Bioscience, a precision oncology company, is laying off 80% of its R&D staff as it focuses on preserving cash while maximizing its commercial business, the company announced Tuesday.
According to a Wednesday SEC filing, Aadi is letting go 22 employees, representing 32% of its total workforce, by the end of the fourth quarter. An SEC filing earlier this month noted that as of June 30, Aadi had 70 full-time employees, including 48 in R&D. It is unclear at this time whether Aadi has already experienced workforce reductions since June, or if the company plans additional layoffs beyond the 22 noted in this week’s filing, to bring the newly announced layoffs to 80% of current R&D staff.
The company has locations in Pacific Palisades, California, and Morristown, New Jersey. Neither the Tuesday announcement nor the Wednesday filing indicated if the layoffs are affecting one or both sites.
In its announcement, Aadi shared that it’s halting its PRECISION1 trial of nab-sirolimus in patients with solid tumors harboring TSC1- or TSC2-inactivating alterations, as the trial is unlikely to meet the efficacy threshold needed to support an accelerated approval. The company noted that the approximately 25 patients in the trial who are still benefiting from nab-sirolimus will be eligible for transition to a planned expanded access protocol.
To further preserve cash runway, according to the announcement, Aadi will pause new enrollment, but continue dosing previously enrolled patients, in two ongoing Phase 2 trials of nab-sirolimus for advanced or recurrent endometrioid-type endometrial cancer and neuroendocrine tumors.
The company expects that the pipeline adjustments and R&D workforce reduction will extend its cash runway into at least the second half of 2026, according to the announcement.
According to the Wednesday SEC filing, Aadi estimates it will incur nonrecurring charges of approximately $2.2 million to $2.5 million in connection with the layoff, primarily consisting of severance payments, employee benefits contributions and related costs. The company expects to incur most of these charges in the third quarter.
