This Micro Cap Biotech Stock Is Tracking Its Biggest Intraday Gains In 11 Months – Here’s Why A China Deal Has Retail Buzzing

• Pevifoscorvir Sodium is an experimental drug that is currently in a mid-stage clinical trial, with further results expected in 2026 and 2027.
• Aligos will receive an upfront payment of $25 million and could earn up to $420 million in milestone payments.
• After the deal, the biotech firm expects its current cash, cash equivalents, and investments to support operations into the fourth quarter of 2026.

Shares of Aligos Therapeutics (ALGS) surged nearly 20% in pre-market trading on Thursday, after the biotech firm announced a licensing deal with Xiamen Amoytop Biotech to develop and commercialize its hepatitis B drug candidate, Pevifoscorvir Sodium, in Greater China.

If the pre-market levels hold, ALGS shares would record their biggest intraday gains since May 12, 2025.

Pevifoscorvir Sodium is an experimental drug being developed to treat chronic hepatitis B by targeting different stages of the virus. The drug is currently in a mid-stage clinical trial, with more results expected in 2026 and 2027.

Aligos Could Earn Up To $420 Million

Under the agreement, Aligos will receive $25 million upfront and could earn up to $420 million in milestone payments, along with royalties on future sales. Amoytop will fund development and handle commercialization across the region, including Mainland China, Hong Kong, Taiwan, and Macau. Aligos will retain rights to the drug in other global markets, including the U.S., Europe, South Korea, and Japan.

As a result of this agreement, Aligos expects its current cash, cash equivalents, and investments to support operations into the fourth quarter (Q4) of 2026.

Aligos said that combining Pevifoscorvir Sodium with Amoytop’s Pegbing could yield better treatments.

“Additionally, we believe that combining Pevifoscorvir Sodium with Amoytop’s drug PEGBING®, along with our ongoing ASO collaboration, will enable differentiated combination regimens and more personalized treatment approaches for patients with chronic HBV infection across Greater China,” said Lawrence Blatt, Chairman, President, and CEO of Aligos Therapeutics.

The deal targets a large market, with more than 90 million people affected by chronic hepatitis B in Greater China.

How Did Retail Traders React?

Retail sentiment on Stocktwits remained ‘bullish’ over the past 24 hours, amid ‘extremely high’ message volumes.

One user said the stock is retesting its resistance levels and sees potential upside beyond $12.20.

Another user noted that despite a “relatively small” upfront fee, it is sufficient to extend the company’s runway.

Year-to-date, the stock has lost around 25%.

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