Movement Alert|Luye Pharma Rises 5.29% in Regular Trading, Convertible Bond Redemption and Clinical Progress Fuel Rally

Market Focus07-14

On July 14, Luye Pharma rose 5.29% in regular trading, trading at HK$2.19/share, with turnover of HK$95.30 million.

On the news front, the company completed early redemption of all outstanding $180 million 6.25% convertible bonds due 2028 on July 6, with all bonds redeemed and cancelled, effectively eliminating potential equity dilution pressure. Concurrently, the company previously completed issuance of $180 million 5.25% convertible bonds due 2031, successfully executing a debt swap that reduced financing costs by 100 basis points.

Additionally, the company's self-developed first-in-class drug LY03015, a VMAT2 inhibitor and Sigma-1R agonist for tardive dyskinesia, achieved positive Phase 2 clinical results in China, meeting the primary endpoint with a 76.5% response rate at the highest dose — nearly double historical data for current first-line treatments. Merchants Securities maintained a Strong Buy rating, citing plans to advance LY03015 into Phase 3 trials in both China and the U.S.

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