Whitehawk Therapeutics Reports No Revenue and Increased Operating Expenses in Latest 10-Q Filing

Whitehawk Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no revenue from product sales during the quarter, a notable decline from $6.2 million in the same period last year. For the six months ending June 30, 2025, total revenue was $7.1 million, down from $11.5 million in the prior year. The decrease in revenue is attributed to the divestiture of its lead product, FYARRO, which was sold to KAKEN Investments in March 2025 for $102.4 million, resulting in a net gain of $87.4 million recognized in the current fiscal period.

Operating expenses surged to $54.7 million for the three months ended June 30, 2025, compared to $21.8 million in the same period last year. This increase was primarily driven by a substantial rise in research and development expenses, which reached $48.8 million, up from $13.1 million in the prior year. The spike in R&D costs is largely due to the upfront license fees paid to WuXi Biologics for the development of three next-generation antibody drug conjugates (ADCs). Selling, general, and administrative expenses also decreased slightly to $5.9 million from $7.9 million, reflecting cost-cutting measures following the divestiture.

The company’s balance sheet showed a significant improvement in liquidity, with cash and cash equivalents totaling $144.9 million as of June 30, 2025, compared to $28.7 million at the end of 2024. This increase is attributed to the proceeds from the FYARRO divestiture and a private investment in public equity financing completed in March 2025. Total assets rose to $180.8 million, while total liabilities decreased to $8.8 million, down from $17.8 million at the end of 2024, indicating a strengthened financial position.

Whitehawk's operational focus has shifted towards the development of its ADC therapies, with plans to submit three investigational new drug applications to the FDA by mid-2026. The company aims to leverage its expertise in oncology to target significant cancer indications with unmet needs. Management believes that the current cash reserves will support operations into 2028, although they anticipate continued net losses as they invest heavily in R&D.

Looking ahead, Whitehawk Therapeutics is positioned to capitalize on its new ADC portfolio while managing the transition from its previous business model centered around FYARRO. The company remains committed to advancing its clinical programs and achieving regulatory milestones, although it acknowledges the need for additional financing to support ongoing operations and strategic objectives in the future.