LianBio Shares Soar Premarket on Strategic Review, End of Bristol Pact

By Colin Kellaher

Shares of LianBio surged in premarket trading Tuesday after the biotechnology company said it was launching a strategic review after picking up $350 million from the termination of its mavacamten license agreement with Bristol Myers Squibb.

LianBio said Bristol has obtained LianBio's exclusive rights to develop and commercialize the heart drug in Mainland China, Hong Kong, Macau, Taiwan, Singapore and Thailand, in conjunction with termination the agreement LianBio inked with MyoKardia in August 2020.

Bristol Myers, which shelled out more than $13 billion in 2020 to buy MyoKardia, won U.S. Food and Drug Administration approval for mavacamten, marketed as Camzyos, in 2022.

In addition to receiving the $350 million payment, LianBio said it will be released from obligations of up to $127.5 million in remaining milestone payments under the license agreement.

LianBio said its board has initiated a comprehensive strategic review of the Princeton, N.J., company in connection with the transaction, adding that it expects to provide an update in the first half of 2024.

LianBio shares, which closed Monday at $1.39, were recently up more than 75% to $2.44 in premarket trading.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

October 24, 2023 09:07 ET (13:07 GMT)

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