Press Release May 18, 2021

Aerpio Pharmaceuticals and Aadi Bioscience Enter into a Definitive Merger Agreement

The Life Sciences team advised Aerpio Pharmaceuticals, Inc. (Nasdaq: ARPO) on its definitive merger agreement with Aadi Bioscience, Inc.

Aerpio is a biopharmaceutical company focused on developing compounds that activate Tie2.

Aadi is a privately-held biopharmaceutical company focusing on precision therapies for genetically-defined cancers with alterations in mTOR pathway genes.

Following the closing of the proposed merger, Aerpio will change its name to “Aadi Bioscience, Inc.” and the combined public company will focus on advancing Aadi’s lead product candidate, FYARROTM (sirolimus albumin-bound nanoparticles for injectable suspension; nab-sirolimus; ABI-009).

In support of the merger, Aerpio has entered into subscription agreements to raise $155 million in a Private Investment in Public Equity (PIPE) financing. Under the terms of the merger agreement, shareholders of Aadi will receive shares of newly issued Aerpio common stock. On a pro forma basis, shareholders of Aadi will own approximately 66.8% and shareholders of Aerpio will own approximately 33.2% of the combined company upon the closing of the merger, prior to the additional PIPE financing transaction. Following the closing of the concurrent PIPE financing, Aerpio shareholders will own approximately 14.7% of the combined company. The actual allocation is subject to adjustment based on Aerpio’s cash balance at the time of closing.

The Goodwin team included Danielle Lauzon, Andrew Goodman, James Xu, Tevia Pollard, Karin Yoo, and Sebastien Miao (Corporate, Public M&A), Janet Andolina (Tax), and Sarah Bock (ERISA & Executive Compensation).

For more details, read the press release.