KEYMED BIO-B (HKEX: 02162) has announced that the previously disclosed merger agreement concerning the sale of its minority stake in Ouro Medicines has been formally completed. The company has received an initial payment totaling $257 million.

According to the terms of the merger agreement, Gilead Sciences has acquired all equity in Ouro Medicines for an upfront cash payment of $1.675 billion, with the potential for up to $500 million in additional milestone payments.

The company has been informed that, under an arrangement between Gilead and Lakefront Biotherapeutics NV (Euronext & Nasdaq: LKFT, formerly Galapagos), the two parties will equally share the upfront payment and the potential $500 million in milestone payments.

As a shareholder in Ouro Medicines, KEYMED BIO-B has received approximately $257 million from the initial payment and is entitled to receive up to a further $70 million in potential milestone payments.

Furthermore, the exclusive license agreement established between KEYMED BIO-B and Ouro Medicines in November 2024 remains in effect. The responsibility for the associated milestone payments, which could total up to $610 million, and tiered royalties on net sales now falls to Gilead and Lakefront.

As part of this transaction, Lakefront has acquired the majority of Ouro Medicines' team and operational assets. Lakefront will collaborate with Gilead on the continued development of CM336/OM336.

Lakefront will be responsible for the ongoing and future Phase I/II clinical studies for CM336/OM336, while Gilead will lead the registration and later-stage studies. Gilead will retain exclusive global commercialization rights for the asset, excluding the Greater China region.