KEYMED BIO-B(02162): The holding company Ouro Medicines has been acquired by Gilead, with expected maximum revenue of approximately $320 million.

KEYMED BIO-B (02162) Announcement, the company holds approximately 15% minority interest in Ouro Medicines through its wholly-owned subsidiary Hong Kong Yi Qiao, which is accounted for in the company's consolidated financial statements as financial assets measured at fair value with changes in fair value recognized in the current period profit and loss. Ouro Medicines has informed the company that on March 23, 2026, the buyer Gilead Sciences, Inc. has agreed to acquire Ouro Medicines through a merger. Upon completion, the group will no longer hold any equity interest in Ouro Medicines. The merger agreement stipulates that the initial payment at completion will be $1.675 billion (adjustable as customary), with additional milestone payments not exceeding $500 million, totaling up to $2.175 billion. The directors believe that the merger confirms the significant potential of the group's comparable best-in-class T cell engager (TCE) platform as shown in CM336/OM336. Additionally, this transaction will allow the group to accelerate the global development of CM336/OM336, making it a potential best-in-class TCE for the treatment of various highly unmet needs in autoimmune diseases, thereby unlocking and expanding its global market value. As of December 31, 2025, the group recorded unrealized fair value gains of $10 million from its equity interest in Ouro Medicines. The expected benefits from the merger include: (i) an initial payment of approximately $2.5 billion; and (ii) milestone payments not exceeding approximately $700 million, totaling up to approximately $3.2 billion, dependent on regulatory and performance milestones. The exact amount to be recognized in the group's comprehensive income statement will be subject to review, hence may differ from the figures stated in this announcement. The funds received will further bolster the company's cash reserves for the rapid commercialization of core products and the continued research and development of future pipeline potentials. The exclusive license agreement with Ouro Medicines and Ouro Medicines Ltd (formerly known as Platina Medicines Ltd, a wholly-owned subsidiary of Ouro Medicines) for CM336/OM336 and future developments will remain effective as per its terms, and the group will continue to benefit from the exclusive licensing arrangement. The company believes that the merger will significantly enhance the competitive position of CM336/OM336 in the global market. The directors (including independent non-executive directors) consider the merger agreement to have been negotiated and concluded by the buyer and Ouro Medicines on fair terms and normal commercial practices, deemed fair and reasonable, with the agreement terms and proposed transactions aligning with the overall interest of the company and its shareholders.