Aligos Therapeutics Inc. (NASDAQ:ALGS) shares surged 20% on Thursday after the company announced an exclusive licensing deal with Xiamen Amoytop Biotech Co., Ltd. to develop and market pevifoscorvir sodium in Greater China for the treatment of chronic hepatitis B.
As part of the agreement, Aligos will receive an upfront payment of $25 million and could earn up to $420 million in milestone payments tied to clinical progress, regulatory approvals, and sales performance. The company will also receive tiered royalties in the high single-digit range on net sales across the licensed regions, which include Mainland China, Taiwan, Hong Kong, and Macau.
Aligos will retain full rights to develop and commercialize pevifoscorvir sodium in markets outside Greater China, including the United States, Europe, South Korea, and Japan. It will also maintain the option to run clinical trials within Greater China, while Amoytop will be responsible for funding development activities in the region.
The company said the deal is expected to extend its cash runway into the fourth quarter of 2026 under its current operating plan.
Pevifoscorvir sodium is a capsid assembly modulator being developed for chronic HBV infection. The therapy is designed to inhibit viral replication, block HBV DNA integration, and reduce the cccDNA reservoir. It is currently undergoing evaluation in the Phase 2 B-SUPREME trial against tenofovir disoproxil fumarate, with a second interim analysis expected in the second half of 2026 and topline results anticipated in 2027.
Greater China is home to more than 90 million people living with hepatitis B. Amoytop is a major pharmaceutical player in China, with approved treatments such as PEGBING® for chronic HBV.
Completion of the transaction is subject to shareholder approval from Amoytop, which is expected within the next 30 days.