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Why Is LianBio (LIAN) Stock Up 130% Today?
Shares of $LianBio (LIAN.US)$ — which focuses on “developing and commercializing medicines for cardiovascular, oncology, opthalmology, and inflammatory diseases in China and other Asian countries” — are soaring on Tuesday. Earlier this morning, the company announced a key agreement with $Bristol-Myers Squibb (BMY.US)$ regarding exclusive rights to a cardiovascular therapeutic. Subsequently, LIAN stock is up more than 130% as of this writing.
According to the accompanying press release, Bristol-Myers obtained exclusive rights from LianBio to develop and commercialize its mavacamten therapeutic in mainland China, Hong Kong, Taiwan, Macau, Thailand and Singapore. This move follows a prior (and now terminated) exclusive licensing agreement LianBio previously entered into with MyoKardia, which is now a wholly owned subsidiary of Bristol-Myers Squibb.
As part of the agreement, LianBio will receive a one-time payment of $350 million. Furthermore, the biotech company will be released from payment obligations of up to $127.5 million in remaining milestone payments, which fell under the prior MyoKardia agreement.
According to information published by the National Library of Medicine, mavacamten “is a novel, first-in-class molecule used to manage and treat patients with obstructive hypertrophic cardiomyopathy ( $Hutchmed (China) (HCM.US)$ ).”
LIAN Stock Enjoys a Robust Credibility Spike
Earlier this year, LIAN stock enjoyed a significant rise in its share price. Subsequently, choppy price action saw it move to below parity for the year prior to the recent announcement. Now, on a year-to-date (YTD) basis, LIAN is up more than 100%, demonstrating that patience can sometimes yield big returns in the biotech space.
Earlier this year, LIAN stock enjoyed a significant rise in its share price. Subsequently, choppy price action saw it move to below parity for the year prior to the recent announcement. Now, on a year-to-date (YTD) basis, LIAN is up more than 100%, demonstrating that patience can sometimes yield big returns in the biotech space.
On a fundamental note, Bristol-Myers acquiring the mavacamten therapeutic also lends some exceptional credibility to LianBio. CEO Yizhe Wang, Ph.D. said that in the past three years, the biotech has worked closely with Bristol-Myers to bring the drug to patients in Asia.
Why It Matters
Within the past three months, only one analyst — Bank of America’s Geoff Meacham — has covered LIAN stock on TipRanks, pegging it as a “buy” with a $6 price target. This estimate still implies about 85% upside potential. Earlier in the trailing-year period, two other analysts have also covered LIAN with “buy” ratings.
Within the past three months, only one analyst — Bank of America’s Geoff Meacham — has covered LIAN stock on TipRanks, pegging it as a “buy” with a $6 price target. This estimate still implies about 85% upside potential. Earlier in the trailing-year period, two other analysts have also covered LIAN with “buy” ratings.
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