Shanghai Startup Lands $325 Million Nasdaq IPO to Advance Phase 3 Assets

Two-year-old Lianbio has raced to Wall Street, raising $325 million in its initial public offering. The Shanghai-based startup now has a sizable fortune to take its Phase 3 assets to the regulatory finish line.

The company offered 20.31 million American depositary shares (ADS) priced at $16, the midrange price between $15 and $17. This puts the biotech at an estimated value of $1.68 billion. The company is also offering underwriters a 30-day option to buy an additional 3 million ADSs at the IPO price.

The joint bookrunners in the Monday offering are Goldman Sachs, Jefferies, and BofA Securities. Following its Nasdaq debut, LianBio will begin trading under the ticker symbol “LIAN”.

Capital to Boost Candidates 

LianBio is expected to funnel most of the proceeds into advancing their pipeline candidates, some of which are nearing regulatory approval in China.

There are three candidates in Phase 3 trials:

1. Mavacamten, a treatment for obstructive hypertrophic cardiomyopathy (abnormal thickening of the heart muscle),
2. Infagratinib, for first- and second-line cholangiocarcinoma (cancer of the bile duct), and
3. TP-03, for demodex blepharitis (eyelid inflammation and severe dry eye caused by mite bites)

Including those three, LianBio has a total of nine assets, covering indications for oncology, ophthalmology, respiratory, inflammatory, and cardiovascular diseases.

The remaining funds will be used to support the launch of new drugs and commercial sales. The company will also use funds to expand business development and in-licensing opportunities.

In-Licensing Business Model

Founded in 2019 by Perceptive Advisors, LianBio gained attention with its in-licensing business model, which focused on obtaining assets for greater China and other Asian markets.

Last August, the startup paid $40 million upfront for the rights to develop and commercialize mavacamten from MyoKardia (later acquired by Bristol-Myers Squibb for $13.1 billion). The same day, LianBio paid $26.5 million to BridgeBio to distribute two assets, infagratinib and SHP2 inhibitor BBP-398, in China and the surrounding region. The deal also gave LianBio priority access in the territory to 20 development candidates from Bridgebio.

Later on, the company would go on a spate of collaborations with Pfizer, Nanobiotix, ReViral, Lyra Therapeutics, Landos Biopharma, and Tarsus Pharmaceuticals for drug development and distribution.

Author

Joy Lin

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