Huatai Securities: Gilead's acquisition of Ouro reflects the value of the KEYMED platform

Huatai Securities published a report stating that KEYMED BIO-B (02162.HK) announced that Gilead will make an initial payment of USD 1.675 billion and a milestone payment of USD 500 million to acquire Ouro, which is the NewCo carrying the overseas rights for CM336. Upon completion of the transaction, KEYMED will receive USD 250 million as an initial payment and USD 70 million as a milestone based on its equity in Ouro, while continuing to enjoy sales revenue sharing rights for CM336.

The firm believes that this acquisition is an important milestone for KEYMED's TCE platform value recognized by MNC, which will significantly accelerate the global value realization of CM336: (1) Gilead has a strong global clinical and commercialization network, and in recent years has continued to increase its investment in the BCMA target and autoimmune fields, with CM336 having synergistic potential with its existing pipeline; (2) CM336 has outstanding efficacy and safety data, and its global progress in autoimmune indications is in the leading tier; (3) The transaction will directly bring cash flow back to KEYMED, strongly supporting the research and commercialization of other core pipelines.

The firm reiterates its positive outlook on the continued valuation realization of assets such as Siponimod, CMG901, and CM512. It maintains a "Buy" rating with a target price of 91.08 yuan