LianBio Shares Soar Premarket on Strategic Review, End of Bristol Pact
October 24 2023 - 9:22AM
Dow Jones News
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 colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 24, 2023 09:07 ET (13:07 GMT)
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