KEYMED BIO-B (02162) announced that the company, through its wholly-owned subsidiary, holds an approximately 15% minority equity interest in Ouro Medicines, which is recorded in the company's consolidated financial statements as a financial asset at fair value through profit or loss. Ouro Medicines has informed the company that on March 23, 2026, the buyer, Gilead Sciences, Inc., has agreed to acquire Ouro Medicines via a merger. Following the completion of the transaction, the group will no longer hold any equity interest in Ouro Medicines.

The merger agreement stipulates an upfront payment of $16.75 billion at closing, subject to customary adjustments, and contingent milestone payments of up to $5 billion, bringing the total maximum consideration to $21.75 billion. The board believes the merger validates the significant potential of the group's best-in-class T-cell engager platform, as demonstrated by CM336/OM336.

Furthermore, the transaction will enable the group to accelerate the global development of CM336/OM336, positioning it as a potential best-in-class TCE for treating various autoimmune diseases with high unmet medical needs, thereby unlocking and expanding its global market value.

As of December 31, 2025, the group recorded an unrealized fair value gain of $1 million from its equity interest in Ouro Medicines. The expected proceeds to the group from the merger include an upfront payment of approximately $250 million and contingent milestone payments of up to approximately $70 million, with a total maximum of around $320 million, dependent on the achievement of regulatory and performance milestones.

The exact amount to be recorded in the group's consolidated income statement is subject to audit and may differ from the figures disclosed in this announcement. Upon receipt, the funds will further strengthen the company's cash reserves, accelerating the commercialization of core products and the research and development of subsequent pipeline assets.

The exclusive license agreement with Ouro Medicines and its wholly-owned subsidiary concerning CM336/OM336 will continue in effect according to its terms, and the group will continue to benefit from the exclusive licensing arrangement. The company believes the merger will significantly enhance the competitive position of CM336/OM336 in the global market.

The board, including independent non-executive directors, considers the merger agreement to have been negotiated on an arm's length basis, concluded on normal commercial terms, and to be fair and reasonable. The terms of the agreement and the transactions contemplated therein are in the overall interests of the company and its shareholders.