LianBio (NASDAQ: LIAN) stock has exhibited a notable ascent on the financial charts during the early trading hours. In the morning session, the LianBio stock recorded a significant surge of 79.14%, reaching a value of $2.49 at the most recent assessment. It is worth noting that during the preceding trading session, the LIAN stock witnessed a modest decline of 2.11%, ultimately settling at $1.39. This notable upswing in LIAN stock is the result of a noteworthy development – the company’s entrance into a strategic alliance.
Today, LianBio (LIAN) formalized a significant agreement with Bristol Myers Squibb (BMS). In accordance with the terms of this pact, BMS has been granted exclusive rights by LianBio to spearhead the development and commercialization of mavacamten within the confines of Mainland China, Hong Kong, Macau, Taiwan, Singapore, and Thailand.
This agreement marks a transition from the exclusive license agreement that LianBio had previously entered into with MyoKardia, Inc., now a wholly-owned subsidiary of BMS, back in August 2020, in pursuit of these very rights. As per the stipulations outlined in the agreement, LIAN is set to receive a one-time payment of $350 million.
Furthermore, LianBio will be absolved from its financial commitments, which could have amounted to as much as $127.5 million in pending milestone payments under the MyoKardia license agreement. In April 2023, the China National Medical Products Administration (NMPA) accorded Priority Review status to a New Drug Application (NDA) for mavacamten.
The NDA was intended for the treatment of adults afflicted by symptomatic obstructive hypertrophic cardiomyopathy (oHCM). LianBio had already secured approvals for mavacamten for the treatment of symptomatic oHCM in Macau and Singapore earlier in 2023.
The LIAN team successfully executed a meticulous clinical development and regulatory strategy within its designated regions, and has judiciously established a robust infrastructure in anticipation of the potential approval of mavacamten in China in the forthcoming year.
With BMS taking the helm as the global owner, the company is ideally poised to further enhance the value created by LianBio for mavacamten in China and enhance patient access to this vital new therapeutic offering across the specified territories. BMS also has plans to extend employment offers to select LianBio personnel who have been actively engaged in the development and commercialization of mavacamten.
In tandem with this transaction, the Board of Directors at LianBio has initiated a comprehensive strategic evaluation of the company’s trajectory. The LianBio Board of Directors anticipates furnishing an update on the results of this strategic review in the first half of 2024.
