ALGS Stock Rallies 16% After-Hours On $25M Cash Boost From China Hepatitis B Drug Deal

• Under the licensing deal signed earlier this year, Aligos granted Xiamen Amoytop Biotech exclusive rights to develop and sell its experimental hepatitis B treatment drug, pevifoscorvir sodium, in Greater China.
• Under the deal, Aligos is eligible for up to $420 million in milestone payments tied to clinical, regulatory, and sales achievements.
• Aligos Therapeutics had $54.9 million in cash, cash equivalents and short-term investments as of March 31, 2026.

Shares of Aligos Therapeutics (ALGS) rose 21% in after-hours trading on Monday after the company announced it had received a $25-million upfront payment from its Chinese licensing partner.

The payment gives Aligos non-dilutive funding as it advances its pipeline of treatments for liver and viral diseases. Aligos Therapeutics had only $54.9 million in cash, cash equivalents, and short-term investments as of March 31, 2026.

The Licensing Deal

Under the licensing deal signed earlier this year, Aligos granted Xiamen Amoytop Biotech exclusive rights to develop and sell its experimental hepatitis B treatment, pevifoscorvir sodium, in Greater China. Aligos keeps full rights to the drug in the United States, Europe, Japan, South Korea, and all other markets.

Under the deal, Aligos is eligible for up to $420 million in milestone payments tied to clinical, regulatory and sales achievements. It will also earn tiered royalties in the high single digits on net sales in the licensed region.

The treatment has already received Breakthrough Therapy Designation from Chinese regulators, which can speed up the approval process. A joint steering committee between the two companies is now overseeing the program. As part of the broader collaboration, the partners also plan to start clinical testing in China of another Aligos drug candidate in the third quarter of this year.

How Did ALGS Retail Traders React?

On Stocktwits, retail sentiment around ALGS stock jumped from ‘neutral’ to ‘bullish’ over the past 24 hours, while message volume stayed at ‘high’ levels.

A Stocktwits user opined that the stock is highly undervalued.

“Cash-in now, but the real read is whether this deal de-risks the story and adds validation for the asset. Market will watch follow-through on the platform, not just the headline,” another user wrote.

ALGS stock has fallen by about 37% year-to-date. 

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