DUALITYBIO-B (09606) Surges 6% in Afternoon Trade as BD Deals Exceed $7 Billion and Company Eyes US Development Role

Stock News09-03

DUALITYBIO-B (09606) saw its share price climb more than 6% during Tuesday's afternoon trading session, buoyed by investor optimism surrounding its expanding partnership portfolio. The stock was last seen trading 5.74% higher at HK$186.1, with turnover reaching HK$143 million.

According to a research note from China Securities, DUALITYBIO has inked collaboration agreements with seven global pharmaceutical companies and innovative biotech firms, covering six molecular assets as well as its proprietary DUPAC™ linker-payload platform. The combined value of these disclosed partnership transactions exceeds $7 billion, positioning the company for substantial future revenue streams.

However, the company has only received approximately $550 million in upfront payments and milestone fees to date. This leaves more than $6.5 billion in unrecognized milestone revenue still on the table, alongside high-single-digit to low-double-digit sales royalties on commercialized products—both of which provide a solid foundation for sustained cash flow generation in the years ahead.

In a notable strategic move, DUALITYBIO has exercised its option on the B7-H3 antibody-drug conjugate (ADC), its most de-risked asset. The company will now share the development costs for DB-1311/BNT324 in the US market with BioNTech, while also sharing in the profits and losses post-commercialization. This represents a significant departure from standard business development deals that typically yield only single-digit to low-double-digit sales royalties, potentially unlocking greater value from the US commercial opportunity.

The brokerage noted that the company's product pipeline is advancing into later-stage development, with 2027 earmarked as the pivotal launch year for its first commercial products.

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