LianBio (OTCMKTS: LIANY), one of China’s prominent biotechnology firms, has announced plans to wind down its operations following a strategic review in light of challenging biotech market conditions. This decision initiates a gradual process that includes the divestiture of remaining pipeline assets, delisting from NASDAQ, and deregistration as a corporate entity. Approximately 50% of the company’s 100-member workforce will be laid off immediately.
The company anticipates that most liquidation activities will conclude by the end of 2024, which will involve fulfilling transitional service obligations under existing agreements and phasing out ongoing clinical trials. In a final gesture to shareholders, the board has declared a special cash dividend of USD 4.80 per ordinary share, amounting to approximately USD 528 million in total cash distribution.
Founded in August 2020 with backing from New York-based Perceptive Advisors, LianBio raised USD 310 million in a Series A funding round led by notable investors, including RA Capital, Venrock Healthcare Capital Partners, and CMG-SDIC Capital. The funding facilitated a series of in-licensing agreements and partnerships aimed at developing innovative cardiovascular and oncology therapies in Greater China and other Asian markets. However, the company faced setbacks in recent months, losing rights to several key molecules due to acquisitions by multinational corporations. Notable losses include the cardiomyopathy drug mavacamten, transferred to Bristol-Myers Squibb, and the RSV therapeutic candidate sisunatovir, which was acquired by Pfizer. Additionally, rights to the oncology drug NBTXR3 were taken over by Johnson & Johnson following a global partnership with its originator.
LianBio plans to complete its business liquidation, including asset sales and employee dismissals necessary for an orderly wind-down, by the end of 2024, with a complete dissolution expected in the first half of 2027.- Flcube.com
