LianBio Strikes $350M Deal with BMS for Mavacamten Rights in Asia, Shares Surge 117%

On October 24, LianBio announced that it had reached an agreement with Bristol-Myers Squibb (BMS) to grant BMS exclusive rights to develop and commercialize mavacamten in markets including mainland China, Hong Kong, Macau, Taiwan, Singapore, and Thailand. The exclusive licensing agreement previously signed by LianBio with MyoKardia (now a wholly-owned subsidiary of BMS) in August 2020 to obtain the aforementioned rights will also be terminated simultaneously.

According to the terms of the agreement, LianBio will obtainA one-time consideration of $350 millionMoreover, according to the license agreement previously signed between LianBio and MyoKardia, the remaining milestone payment obligation of $127.5 million will also be waived.

In April 2023, the National Medical Products Administration (NMPA) of China accepted the New Drug Application (NDA) for mavacamten for the treatment of adult patients with symptomatic obstructive hypertrophic cardiomyopathy (oHCM) and granted it priority review. Additionally, mavacamten was approved this year in the Macao Special Administrative Region of China and in Singapore for the treatment of adult patients with symptomatic oHCM.

LianBio Chief Executive Officer Dr. Wang Yizhe said:"Over the past three years, we have been working closely with BMS with the aim of bringing mavacamten to patients in Asia. The LianBio team has successfully executed the clinical development and registration strategy for mavacamten in the licensed regions and is fully prepared for the drug’s market launch. Mavacamten is expected to receive marketing approval in China next year. As the global rights holder of this product, BMS will be well-positioned to further enhance patient access to this innovative drug in these regions, building on the value created by LianBio for mavacamten in the Chinese market."

Adam Lenkowsky, Chief Commercial Officer of Bristol-Myers Squibb, stated:"Expanding our business footprint in China by providing high-quality innovative drugs to patients with serious diseases is a key strategic goal for the company. oHCM significantly impacts patients' quality of life, so we are excited to build on the strong foundation laid by LianBio with the aim of bringing mavacamten to more patients worldwide."

BMS is expected to provide job positions for certain employees of LianBio who are responsible for the development and commercialization of mavacamten.

At the same time as signing this deal, LianBio's board of directors has initiated a comprehensive strategic review of the company’s business internally. The results of the strategic review are expected to be announced by LianBio's board of directors in the first half of 2024.

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