YD Bio Enters into MOU to Merge with EG BioMed, Advancing DNA Methylation–Driven AI Platforms for Cancer Diagnostics and Drug Development

Rhea-AI Summary

YD Bio (Nasdaq: YDES) entered a non-binding MOU to merge with EG BioMed to build an integrated, DNA methylation–driven oncology platform combining diagnostics, real-world clinical data, and AI-enabled drug discovery.

The transaction is anticipated to close in 2026 and is subject to customary closing conditions, regulatory approvals, and definitive agreements. EG BioMed brings a DNA methylation diagnostics platform, AI biomarker algorithms, and certified clinical lab infrastructure, with clinical adoption at three affiliated Taipei Medical University centers. Expected integration benefits and revenue or cost synergies remain conditional and are not assured.

Positive

• Transaction targets platform integration across diagnostics and therapeutics
• EG BioMed platform has clinical adoption at 3 Taipei Medical University centers
• Deal aims to convert DNA methylation datasets into AI drug‑discovery assets

Negative

• Agreement is a non-binding MOU; no assurance of definitive deal
• Closing subject to regulatory approvals and customary conditions in 2026
• Expected revenue growth and synergies are conditional and may not materialize

Key Figures

Early-stage PDAC sensitivity 93.8% EG BioMed pancreatic cancer study; early-stage (I–II) PDAC detection

Late-stage PDAC sensitivity 100% EG BioMed pancreatic cancer study; late-stage PDAC detection

Specificity in controls 97.3% EG BioMed pancreatic cancer study; healthy control group

Overall accuracy 97.7% EG BioMed pancreatic cancer study; 100 PDAC / 500 controls dataset

Partner GMP plant investment NT$210 million ($6.72M) U.S. GMP plant investment linked to California facilities plan

Price change pre-news 5.67% 24h move in YDES prior to this MOU announcement

Public Warrants shares 11,500,000 shares Shares issuable upon exercise of Public Warrants per F-1/A and 424B3

Clinical adoption sites 3 medical centers EG BioMed cancer detection platform approved at Taipei Medical University affiliates

Market Reality Check

$11.66 Last Close

Volume Volume 70,497 is 1.07x the 20-day average of 66,069, indicating only modestly elevated trading interest before this news. normal

Technical Shares at $12.68 are trading below the $14.44 200-day MA, despite a 5.67% pre-news gain.

Peers on Argus

YDES was up 5.67% while key biotech peers were mixed or down (e.g., BHVN -8.06%, PHVS -6.04%, SNDX -5.29%, ABCL -1.15%, JANX +1.33%), pointing to a stock-specific move rather than a sector-wide shift.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Jan 05	Strategic roadmap update	Positive	+5.7%	Outlined 2026 clinical and commercial roadmap after key CMC and DMF milestones.
Dec 16	U.S. expansion plans	Positive	+1.0%	Announced new California operations center to support U.S. development and access.
Dec 09	Conference showcase	Positive	-18.4%	Showcased diagnostic and precision medicine portfolio at Healthcare EXPO Taiwan.
Dec 02	Clinical results update	Positive	+3.7%	Reported strong OkaiDx pancreatic trial metrics and expanded U.S. test access.
Nov 24	Regulatory milestone	Positive	+4.5%	Announced first U.S. ophthalmology entry and FDA 510(k) device clearance.

Pattern Detected

Positive operational and clinical updates have usually coincided with positive price moves, though there has been at least one sharp selloff on otherwise constructive news.

Recent Company History

Over the past months, YD Bio reported multiple milestones across diagnostics and ophthalmology. On Nov 24, 2025, it secured FDA 510(k) clearance for Exovisse contact lenses and advanced LSC exosome therapeutics. Subsequent news expanded OkaiDx testing to 44 U.S. states with strong pancreatic cancer metrics (sensitivity up to 100%, accuracy 97.7%). The company then highlighted U.S. expansion plans and a 2026 roadmap. Today’s MOU with EG BioMed extends this trajectory by aiming to integrate diagnostics, AI analytics, and drug discovery into a unified oncology platform.

Market Pulse Summary

The stock moved -8.0% in the session following this news. A negative reaction despite the strategic MOU would contrast with most prior events, where 4 of the last 5 announcements coincided with gains. The market could focus on the MOU’s non-binding status and execution risks around integrating diagnostics, AI and therapeutics. Existing registered warrant overhang from recent filings could also weigh on sentiment. Investors would likely watch for definitive agreements, regulatory clearances and concrete revenue traction from the combined platform.

Key Terms

dna methylation medical

"advancing DNA methylation-based cancer detection technology and ophthalmologic innovations"

A chemical tag added to DNA that acts like a sticky note on a recipe, changing whether a gene is read without altering the underlying genetic code. For investors, DNA methylation matters because these tags can serve as measurable biomarkers for disease diagnosis, risk prediction, and treatment response, and they can be targets for drugs or diagnostic tests—factors that influence clinical value, regulatory approval, and market potential.

biomarker medical

"cancer diagnostics and AI-driven biomarker analytics"

A biomarker is a measurable indicator found in the body, such as in blood or tissues, that provides information about health, disease, or how the body responds to treatment. For investors, biomarkers can signal the potential success or risk of medical products or therapies, influencing the value of related companies and industry trends. They act like signals or clues that help assess the progress of medical advancements and their market impact.

ai-enabled drug discovery technical

"real-world clinical data generation, and AI-enabled drug discovery"

AI-enabled drug discovery uses computer algorithms that learn from large amounts of biological and chemical data to spot promising candidate medicines, predict how they behave, and prioritize which to test in the lab. Think of it as a smart assistant that sifts through a huge library to find the most likely winners faster than humans alone. For investors, it can shorten development time, lower early-stage costs, and change a drug program’s risk and potential value.

dna methylation profiling medical

"EG BioMed’s core technology is based on DNA methylation profiling, a powerful epigenetic approach"

DNA methylation profiling is a laboratory method that maps small chemical tags placed on DNA that act like sticky notes telling genes when to be more or less active. For investors, these patterns can serve as reliable disease markers, help identify which patients are likely to respond to a therapy, and underpin diagnostic tests or targeted treatments—making it a potential driver of product value, clinical success, and market opportunity.

epigenetic medical

"DNA methylation profiling, a powerful epigenetic approach that captures cancer-associated"

Epigenetic describes changes that alter how genes are turned on or off without changing the underlying DNA sequence, similar to flipping light switches or adjusting software settings that control a machine. For investors, epigenetic mechanisms matter because they create new targets for drugs, diagnostics, and therapies that can modify disease processes or patient responses, potentially leading to novel products, market opportunities, and long-term revenue streams.

ai-powered drug development technical

"transform DNA methylation datasets into strategic assets for AI-powered drug development"

AI-powered drug development uses advanced computer algorithms to analyze biological data, predict how molecules will behave, and help design and prioritize potential medicines much faster than traditional lab work. For investors this matters because it can lower research costs, shorten timelines, and increase the chance of finding promising drug candidates—like using a powerful map and detective together to find the best route—while still carrying scientific and regulatory risks that affect the value of drug companies.

patient stratification medical

"support AI-based target discovery, patient stratification, and recurrence-risk prediction"

Patient stratification is the practice of grouping patients into subgroups based on shared characteristics — such as symptoms, test results, or likely response to treatment — so therapies and trials can be targeted more precisely. For investors, it matters because better matching of treatments to the right patients can raise the chances of clinical success, reduce time and costs in development, and increase the likelihood of regulatory approval and profitable market adoption, much like tailoring a product to the right customer segment.

recurrence-risk prediction medical

"patient stratification, and recurrence-risk prediction"

A recurrence-risk prediction is a medical test or statistical tool that estimates the likelihood a disease will return after treatment by analyzing patient information such as symptoms, lab tests, imaging or genetic data. For investors, it matters because more accurate predictions can change clinical trial design, treatment use, regulatory decisions and the size and pricing of a market—think of it like a weather forecast that helps doctors and companies plan for future storms.

AI-generated analysis. Not financial advice.

Taipei, Taiwan, Jan. 06, 2026 (GLOBE NEWSWIRE) -- YD Bio Limited (“YD Bio” or the “Company”) (Nasdaq: YDES), a biotechnology company advancing DNA methylation-based cancer detection technology and ophthalmologic innovations, today announced that the Company has entered into a Memorandum of Understanding (the “MOU”) to merge with EG BioMed, a biotechnology company specializing in DNA methylation–based cancer diagnostics and AI-driven biomarker analytics. The proposed merger represents a strategic step in building an integrated, data-driven oncology platform spanning early cancer detection, real-world clinical data generation, and AI-enabled drug discovery. The MOU is non-binding and there can be no assurance that the parties will enter into definitive agreements, obtain required approvals, or consummate the merger on the terms contemplated or on any particular timeline. Any integration benefits, including potential revenue growth, platform expansion, or cost synergies, remain subject to numerous assumptions and risks and may not be realized¹. The transaction is anticipated to close in 2026, subject to customary closing conditions, regulatory approvals, and the finalization of definitive agreements.

Strategic Rationale and Vision for the Future: From Single Technologies to a Platform-Based Biotech Ecosystem

As precision medicine and AI-driven drug development continue to reshape the biotechnology industry, competitive advantage is increasingly defined by the ability to integrate high-quality biological data, advanced analytics, and clinical execution. The Company believes that, if completed, the merger with EG BioMed could result in the acceleration of its anticipated transition from a technology-focused company into a platform-based biotech organization anchored in clinically validated molecular data; however, expected benefits remain subject to successful execution, data generation, regulatory pathways, and market adoption, none of which can be assured. EG BioMed brings to the combined entity a robust DNA methylation diagnostics platform, AI-based biomarker algorithms, and certified clinical laboratory infrastructure, providing the Company with a critical upstream engine for both diagnostics’ commercialization and therapeutic innovation.

By unifying diagnostics, therapeutics, real-world clinical data, and AI intelligence, the Company aims to reduce development risk, accelerate time-to-market, and build a scalable oncology innovation ecosystem addressing cancer from early detection through treatment monitoring and recurrence prevention, subject to successful execution and regulatory and market outcomes.

Synergies: Leveraging DNA Methylation Data for AI-Driven Drug Discovery

EG BioMed’s core technology is based on DNA methylation profiling, a powerful epigenetic approach that captures cancer-associated molecular changes with high sensitivity. Its platform has demonstrated strong clinical performance in early cancer detection, including pancreatic cancer—one of the most lethal malignancies with significant unmet medical needs. Beyond diagnostics, the merger enables YD Bio to transform DNA methylation datasets into strategic assets for AI-powered drug development. These clinically validated epigenetic datasets will be used to support AI-based target discovery, patient stratification, and recurrence-risk prediction. By applying advanced AI models to methylation-driven disease mechanisms, YD Bio aims to develop novel therapeutic approaches with the potential to reduce cancer recurrence and improve long-term patient outcomes.

“Prior to this announcement, EG BioMed’s cancer detection platform was approved for clinical adoption at three affiliated medical centers of Taipei Medical University. It is now being integrated into hospital workflows to assist clinicians in monitoring treatment response, disease progression, and recurrence,” said Dr. Ethan Shen, Chairman and CEO of the Company.” The Company notes that early use at these centers may demonstrate clinical and economic value, which could support wider adoption across additional institutions. Broader uptake, if achieved, may contribute to diagnostics revenue growth and inform future therapeutic development.

About YD Bio Limited

YD Bio Limited is a biotechnology company focused on advancing clinical trials, new drug development, cancer prevention diagnostics, and limbal stem cell and exosome therapies with the potential to transform the treatment of diseases with high unmet medical need. The Company is committed to improving patient outcomes through scientific innovation and precision medicine. In addition to its R&D efforts, YD Bio Limited is a recognized supplier of clinical trial drugs and has expanded into the development and distribution of post-market auxiliary products. For more information, please visit the Company’s website: ir.ydesgroup.com

Forward-Looking Statements

This press release contains forward-looking statements, including, among others, statements regarding the Company’s entrance into a non-binding MOU with EG BioMed, potential merger, including its expected timing, approvals, and potential synergies and platform benefits. Forward-looking statements are based on current expectations, estimates, forecasts, and projections and are not guarantees of future performance. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. Actual results may differ materially due to a variety of factors, including regulatory decisions and feedback; the ability to enter into definitive agreements, obtain required approvals, satisfy closing conditions, consummate the transaction on the anticipated timeline or at all, and successfully integrate the businesses. The Company undertakes no obligation to update any forward-looking statements, except as required by law. The Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the U.S. Securities and Exchange Commission.

For investor and media inquiries, please contact:
YD Bio Limited
Investor Relations
Email: investor@ydesgroup.com

WFS Investor Relations Inc.
Email: services@wealthfsllc.com
Phone: +1 628 283 9214

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¹ Note to Company: Consider making explicit that the MOU is non-binding / binding, that no assurances can be given that definitive agreements will be entered into / transaction will close on a specific timeline.

FAQ

What did YD Bio (YDES) announce on January 6, 2026 about EG BioMed?

YD Bio announced a non-binding MOU to merge with EG BioMed to build a DNA methylation–driven oncology platform, with an anticipated close in 2026.

How will the proposed YDES and EG BioMed merger affect diagnostics capabilities?

The merger would combine YD Bio with EG BioMed’s DNA methylation diagnostics, AI biomarker algorithms, and certified clinical lab infrastructure to expand diagnostics and clinical data generation.

Has EG BioMed’s platform been used clinically as part of the YDES announcement?

Yes. EG BioMed’s cancer detection platform was reported as clinically adopted at three affiliated Taipei Medical University centers and integrated into hospital workflows.

When is the YD Bio (YDES) and EG BioMed transaction expected to close?

The companies anticipate the transaction to close in 2026, subject to customary closing conditions and regulatory approvals.

What are the main risks investors should note about the YDES MOU?

Key risks: the MOU is non-binding, there is no assurance definitive agreements will be reached, and expected synergies or revenue impacts are conditional.