Keymed Bio received $257 million upfront from Gilead's $1.675 billion acquisition of Ouro Medicines, with up to $70 million in additional milestone payments and ongoing royalty potential from its licensing deal.
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Keymed Bio receives $257M upfront from Gilead's Ouro buyout
Keymed Bio received $257 million upfront from Gilead Sciences Inc.'s $1.675 billion acquisition of Ouro Medicines, the Hong Kong-listed biotech said Thursday.
The payment stems from Gilead's purchase of all outstanding equity in Ouro Medicines, which added the clinical-stage BCMAxCD3 T cell engager gamgertamig (OM336) to the US drugmaker's inflammation portfolio. Keymed, which held a stake in Ouro, is also eligible for up to $70 million in additional milestone payments tied to the deal.
Keymed's exclusive licensing agreement with Ouro from November 2024 remains in effect, with up to $610 million in milestones and tiered royalties on net sales now payable by Gilead and Lakefront Biotherapeutics NV. Lakefront, formerly known as Galapagos, acquired substantially all of Ouro's team and operational assets and will collaborate with Gilead on gamgertamig's development.
Gamgertamig is designed to deplete plasma cells and B cells through a limited subcutaneous treatment course, targeting durable disease control in severe antibody-mediated orphan diseases including autoimmune hemolytic anemia and immune thrombocytopenia. The US Food and Drug Administration has granted both Fast Track and Orphan Drug Designations for those indications. Registrational studies could begin as early as 2027.
Under the collaboration, Lakefront will run ongoing and future Phase 1/2 studies while Gilead leads registrational and late-stage trials. Gilead retains sole worldwide commercialization rights outside Greater China, with Lakefront receiving tiered royalties of 20 percent to 23 percent on net sales. Lakefront also in-licensed three preclinical autoimmune programs from Ouro, with an opt-in for Gilead at $75 million per program after clinical proof-of-concept.
The transaction provides Lakefront with relief under its 2019 option and license agreement with Gilead, enabling it to deploy at least $500 million of its cash independently, including up to $150 million for share buybacks. Lakefront expects its year-end 2026 cash balance to be approximately 2 billion euros.
The $257 million upfront payment strengthens Keymed's balance sheet and validates its partnership model with global drugmakers. Investors will watch for the initiation of registrational studies for gamgertamig, expected as early as 2027, and any further milestone payments from the licensing deal.
This article is for informational purposes only and does not constitute investment advice.
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