Aligos Therapeutics Inc. (NASDAQ:ALGS) saw its shares rise 20% on Thursday after revealing an exclusive licensing pact with Xiamen Amoytop Biotech Co., Ltd. that grants Amoytop rights to develop and commercialize pevifoscorvir sodium in Greater China for the treatment of chronic hepatitis B virus infection.
Under the terms of the agreement, Aligos will receive an upfront cash payment of $25 million. The company is also eligible to receive up to $420 million tied to clinical, regulatory, and sales milestones, in addition to tiered, high single-digit royalties on net sales in the licensed territories, which are Mainland China, Taiwan, Hong Kong, and Macau.
Aligos will keep development and commercialization rights for pevifoscorvir sodium in the United States, Europe, South Korea, Japan, and other markets outside the licensed Greater China territories. The company also retains the ability to conduct clinical trials within Greater China even as Amoytop assumes funding responsibility for its regional development program.
Company commentary indicates that the transaction supports Aligos’ financial plan, extending its cash runway into the fourth quarter of 2026 based on the current operating plan.
Pevifoscorvir sodium is being developed as a capsid assembly modulator for chronic HBV infection. The molecule is designed to block hepatitis B virus replication, to prevent HBV DNA integration, and to reduce the covalently closed circular DNA, or cccDNA, reservoir. The agent is currently being evaluated in the Phase 2 B-SUPREME study against tenofovir disoproxil fumarate.
The program’s next clinical milestones include a second interim analysis, expected in the second half of 2026, and topline data planned for 2027.
Greater China represents a substantial regional burden for HBV, with more than 90 million people living with the infection, according to the information provided by the company. Amoytop is described as a leading Chinese pharmaceutical company with commercially approved therapeutics, including PEGBING®, to treat chronic HBV infection.
The closing of the deal remains conditional on Amoytop obtaining approval at a Shareholders’ Meeting, which the agreement anticipates will occur within 30 days.
From a financing and program-management standpoint, the deal transfers regional development funding to Amoytop while preserving Aligos’ global rights outside Greater China and maintaining Aligos’ role in clinical study activity within the region. The arrangement delivers immediate liquidity through the upfront payment, potential upside through milestone and royalty payments, and a stated extension of Aligos’ cash runway under its current operating assumptions.