Core Viewpoint - Via Biotechnology (01873) announced a $1.5 billion acquisition agreement with Swedish Orphan Biovitrum AB (Sobi) for Arthrosi, with an upfront payment of $950 million and up to $550 million in regulatory and commercial milestone payments, expected to close in the first half of 2026 [1] Group 1: Financial Impact and Stock Performance - Via Biotechnology anticipates a maximum investment return of approximately $40 million from the transaction, contingent on regulatory approvals and commercialization milestones [6] - Following the announcement, Via Biotechnology's stock opened at a high of HKD 2.21, reflecting a 13.92% increase, but the stock price later declined, indicating market volatility [6][10] - The stock has experienced a significant decline of 44.95% since reaching a high of HKD 3.27 on October 8, with a minimum price of HKD 1.8 on November 24 [6][10] Group 2: Market Sentiment and Trading Volume - The recent stock price increase was characterized by a "volume-price rise" pattern, with daily trading volumes exceeding 20 million shares during the price increase phase [7] - However, the October rally showed signs of weakness, with declining trading volumes, indicating a lack of market confidence and leading to subsequent price drops [7][8] - The proportion of profitable shares held by investors decreased from 100% on October 8 to 24.69% by December 12, suggesting a shift in market sentiment [10] Group 3: AI and Business Model Developments - Via Biotechnology has been integrating AI into its drug development services, with AI-related orders now accounting for 12% of new signed orders, reflecting a growing trend [13] - The company has adopted an "Equity for Service" model, investing in high-potential biotech startups in exchange for equity, which has resulted in significant returns and a robust product pipeline [14] - As of the first half of 2025, Via Biotechnology has invested in 93 companies, with 18 achieving partial or full exits, and a total of 228 product pipelines, indicating a strong growth trajectory [14] Group 4: Valuation and Investment Considerations - After two months of declining stock prices, Via Biotechnology's price-to-sales (PS) ratio stands at 2.05, significantly below the industry average of 8.66, suggesting it is undervalued [17] - The company’s fundamentals are improving, and the current valuation presents an opportunity for investors to consider [17]