Aadi Bioscience downgraded to Hold from Buy at Jefferies

Jefferies analyst Roger Song downgraded Aadi Bioscience to Hold from Buy with a price target of $1.50, down from $11, after Aadi announced it will halt the registration-intended PRECISION1 trial of nab-sirolimus in patients with solid tumors harboring TSC1 or TSC2 inactivating alterations as an analysis by the Independent Data Monitoring Committee demonstrated that the study was unlikely to exceed an efficacy threshold necessary to support an accelerated approval. It is “disappointing” that the TSC1/TSC2 agnostic pivotal study did not show approvable efficacy, and the firm removed TSC1/TSC2 related revenue from its model, but notes that the company continues label-expanding effort with two ongoing Phase 2 studies in EEC and NETs.