Konnoi-B(02162.HK) Proposes to Sell Stake in Ouro Medicines

Gelonghui March 24 — Connaissance-B (02162.HK) announced that its wholly owned subsidiary, One Bridge Hong Kong, holds approximately 15% minority interest in Ouro Medicines, which is recorded as a financial asset measured at fair value with changes recognized in profit or loss in the company’s consolidated financial statements. Ouro Medicines has informed the company that on March 23, 2026, the buyer (Gilead Sciences, Inc. NASDAQ: GILD) has agreed to acquire Ouro Medicines through a merger. Following completion, the group will no longer hold any equity interest in Ouro Medicines. The merger agreement stipulates that the initial payment at closing will be US$1.675 billion (subject to customary adjustments), with contingent milestone payments not exceeding US$500 million, for a total maximum of US$2.175 billion.

Ouro Medicines is a Delaware-incorporated company primarily engaged in the development and commercialization of CM336/OM336. As of the date of this announcement, the group holds approximately 15% of Ouro Medicines’ equity (on a fully diluted and conversion basis). To the best of the company’s knowledge, Ouro Medicines and its other shareholders are independent third parties.

The directors believe that the merger confirms the significant potential of the group’s best-in-class T-cell engager (TCE) platform demonstrated by CM336/OM336. Additionally, this transaction will enable the group to accelerate the global development of CM336/OM336, positioning it as a potential best-in-class TCE for treating various autoimmune diseases with high unmet needs, thereby unlocking and expanding its global market value.

As of December 31, 2025, the group recognized an unrealized fair value gain of US$1 million from its equity interest in Ouro Medicines. Expected proceeds from the merger include: (i) an initial payment of approximately US$250 million; and (ii) contingent milestone payments not exceeding approximately US$70 million, with a total potential of up to US$320 million, depending on regulatory and performance milestones achieved. The actual amount recognized in the group’s consolidated income statement is subject to audit and may differ from the figures stated in this announcement. Upon receipt of these funds, the company’s cash reserves will be further strengthened to rapidly advance the commercialization of core products and the development of subsequent pipeline potentials.