Aadi Bioscience (NASDAQ:AADI) was downgraded to Neutral from Overweight at Piper Sandler after it announced that mid-stage study of its solid tumors candidate was unlikely to meet its goal.

The company was also downgraded last week at Jefferies to Hold on the same reason.

AADI stock is down 5% today.

Aadi Bioscience said last week that phase 2 trial of Fyarro (nab-sirolimus), its candidate for solid tumors, is unlikely to meet the efficacy threshold for accelerated approval and the decision to halt the PRECISION1 trial was based on analysis by an Independent Data Monitoring Committee.

Piper Sandler said, “There still remains the commercial Fyarro business, with a strategic review now ongoing on how to realize maximum potential value there. Nevertheless, we note here that this business has largely reached a steady state (estimate FY24 revenues of $24.3M; flat Y/Y). In light of the PRECISION1 outcome, we are downgrading AADI shares to Neutral and lowering our PT to $1.75 from $5.00.”