KEYMED BIO-B Surges Nearly 8% in Afternoon Trading Following Gilead's Acquisition of Ouro

Stock News04-15 15:10

KEYMED BIO-B (02162) rose nearly 8% in afternoon trading. At the time of writing, the stock was up 6.95% to HK$79.25, with a turnover of HK$329 million. The movement follows news that Gilead Sciences recently acquired Ouro Medicines, with KEYMED BIO-B set to receive an upfront payment of approximately $250 million based on its stake in Ouro. In March, Gilead announced the acquisition of Ouro Medicines, whose core asset is the BCMAxCD3 bispecific antibody CM336, for an upfront payment of $1.675 billion and potential milestone payments of up to $500 million. Due to KEYMED BIO-B's shareholding in Ouro, the company is entitled to an upfront payment of about $250 million and potential milestone payments of up to $70 million. Additionally, Gilead will continue to honor the previously signed collaboration agreement, which includes potential milestone payments of up to $610 million and sales royalties. Guosen Securities issued a research report stating that due to Gilead's acquisition of Ouro, KEYMED BIO-B will receive a $250 million upfront payment, leading to a significant upward revision of its 2026 profit forecast and the addition of a 2028 profit forecast. The company is projected to achieve revenues of RMB 2.74 billion, RMB 2.15 billion, and RMB 2.67 billion for 2026-2028, with net profits attributable to shareholders of RMB 800 million, RMB 70 million, and RMB 430 million, respectively. The core product, Spukibart, is expected to see rapid sales growth after being included in the national medical insurance catalog, and the subsequent innovation pipeline is progressing smoothly. The "Outperform" rating is maintained.

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