0001193125-26-104158
SEC filingWhitehawk Therapeutics Inc reported a net loss of $20.6 million for FY 2025, a significant improvement from a $63.7 million net loss in FY 2024, primarily driven by an $87.3 million gain on the sale of its FYARRO business. Total revenue was $7.1 million, a sharp decline from $26.0 million in the prior year, reflecting the divestiture of the FYARRO commercial product in March 2025. The company incurred substantial operating expenses of $121.5 million, dominated by $91.0 million in research and development costs for its new ADC pipeline. Cash and short-term investments totaled $145.7 million at year-end, providing runway for clinical development of its three investigational ADC therapies targeting PTK7, MUC16, and SEZ6.
Whitehawk Therapeutics reported a net loss of $20.6 million for FY 2025, a substantial improvement from the $63.7 million net loss in FY 2024. This improvement was primarily driven by an $87.3 million gain on the sale of the FYARRO business, which closed on March 25, 2025. Total revenue declined 73% year-over-year to $7.1 million from $26.0 million, reflecting the divestiture of the commercial FYARRO product. The company recorded a comprehensive loss of $20.5 million, which includes a $104,000 unrealized gain on investments. Operating loss was $114.4 million, with total operating expenses of $121.5 million, including $91.0 million in research and development and $29.8 million in selling, general and administrative expenses.
Revenue consisted entirely of product sales from the FYARRO business, which generated $7.1 million in net sales for FY 2025 compared to $26.0 million in FY 2024. The 73% year-over-year decline reflects the divestiture of this business in March 2025. Two customers represented 37% and 60% of total revenue for FY 2025. With the FYARRO divestiture complete, the company no longer has commercial revenue streams and has transitioned to a pure clinical-stage development company focused on its ADC pipeline. The company's future revenue will depend on successful development and potential commercialization of its three ADC therapies.
The company reported a loss from operations of $114.4 million, with operating expenses significantly exceeding revenue. Research and development expenses increased 78% year-over-year to $91.0 million, reflecting increased investment in the ADC pipeline following the WuXi Biologics license agreement. Selling, general and administrative expenses decreased 19% to $29.8 million. Cost of goods sold was $760,000, representing product costs for FYARRO sales. The company's operating margin was negative, as expected for a clinical-stage biopharmaceutical company without commercialized products. Other income of $93.8 million, primarily from the gain on sale of business, offset a portion of the operating losses.
Net cash used in operating activities was $97.4 million for FY 2025. Investing activities provided $11.9 million in cash, primarily from $101.3 million in proceeds from the sale of business, partially offset by $148.7 million in purchases of short-term investments. Financing activities provided $94.4 million in cash, mainly from the $100.0 million PIPE financing completed in March 2025. The company ended the year with $37.6 million in cash and cash equivalents and $108.1 million in short-term investments, totaling $145.7 million in liquid assets. Total assets were $150.8 million, with total liabilities of $14.5 million and stockholders' equity of $136.3 million. Management believes current resources provide sufficient funds for at least twelve months of operations.
The company has transitioned to a clinical-stage oncology therapeutics company focused on developing three next-generation antibody-drug conjugates (ADCs) targeting PTK7, MUC16, and SEZ6. HWK-007 (PTK7) and HWK-016 (MUC16) have IND applications cleared by the FDA with Phase 1 trials actively recruiting, with data readouts expected in the first half of 2027. HWK-206 (SEZ6) IND submission is planned for mid-2026. The company utilizes an outsourced virtual model for clinical development and manufacturing, with partnerships with WuXi Biologics and Hangzhou DAC. Key risks include clinical trial outcomes, regulatory approvals, competition from other ADC developers, intellectual property protection, and the need for additional financing to support operations beyond the next twelve months.