ALPHAMAB-B (09966) saw its stock price surge more than 12% during early trading hours, reaching a high of 8.32 Hong Kong dollars with a trading volume of 7.62 million Hong Kong dollars. As of the latest update, shares were up 12.43%.

This rally follows the announcement by ALPHAMAB-B that its wholly-owned subsidiary, Jiangsu Alphamab Biopharmaceuticals Co., Ltd., has entered into a licensing agreement with Pathos AI, Inc. The agreement covers the company's independently developed first-in-class (FIC) novel drug, JSKN016, a TROP2/HER3 bispecific antibody-drug conjugate (ADC).

Under the terms of the licensing deal, ALPHAMAB-B grants Pathos an exclusive license to research, develop, manufacture, and commercialize JSKN016 globally, excluding mainland China, Hong Kong, Macau, and Taiwan. Pathos will be responsible for all associated development and commercialization costs. In return, ALPHAMAB-B is entitled to a non-refundable upfront payment of $125 million, along with milestone payments based on certain development and commercialization progress, totaling up to $2.093 billion. Additionally, the company will receive royalties as a high single-digit to low double-digit percentage of annual net sales in the licensed territory.

As part of this collaboration, ALPHAMAB-B has also received a warrant from Pathos, allowing it to subscribe for shares of Pathos' preferred stock at a total subscription price of $62.5 million, subject to adjustments based on the overall transaction terms.