The company TYK MEDICINES-B (02410) has announced a strategic partnership with Qilu Pharmaceutical.
On July 21, 2026, following the trading day, the company entered into a license and cooperation agreement alongside a supply and commercialization agreement with Qilu or its designated affiliates.
The agreements are focused on the joint development, production, and commercialization of the active pharmaceutical ingredient (API) for the innovative drug candidate TY-9591 within China.
Under the terms of the license and cooperation pact, the company will receive an upfront payment totaling approximately RMB 700 million.
This sum includes roughly RMB 400 million from a related share subscription agreement and potential milestone payments of up to RMB 2.06 billion, contingent upon achieving regulatory approvals and expanding the drug's indications.
In conjunction with the licensing deal, the investor has agreed to subscribe for new H-shares in the company.
A total of approximately 63.2227 million H-shares will be issued to the subscriber at a price of HK$7.30 per share, amounting to a total cash consideration of about RMB 400 million or its equivalent in USD/HKD.
This subscription price represents a discount of roughly 13.30% compared to the closing price of HK$8.42 per H-share on the Hong Kong Stock Exchange on July 21, 2026.
The subscribing entity is a wholly-owned subsidiary of Qilu Pharmaceutical, serving as its investment holding platform.
Upon completion of the transaction, Qilu Pharmaceutical will hold a 14.26% stake in the company.
TYK MEDICINES-B believes that the proposed strategic collaboration under the agreements will deliver long-term benefits and enhance capital efficiency for its research and development efforts.
The board of directors is confident that the partnership with Qilu will significantly advance the drug development, manufacturing, and commercialization process.
The company views these agreements as a crucial step in establishing a long-term, stable relationship with a reputable pharmaceutical firm in China, which will facilitate the commercialization of its products in the designated region.
This move is seen as a key initiative to leverage Qilu's expertise and network to achieve the company's commercial milestones.
The net proceeds from the share subscription, estimated at approximately HK$460 million, will provide additional capital support for the company's overall business operations.
These funds are allocated as follows: about 50% will be used for Phase II and Phase III clinical trials of TY-0540 as a monotherapy for platinum-resistant ovarian cancer; 40% is designated for Phase II and Phase III clinical trials of TY-0540 in combination with fulvestrant for CDK4/6-resistant breast cancer; and the remaining 10% is earmarked for working capital and general corporate purposes.
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