By Ben Glickman
LianBio, a biotechnology company, has recently received an unsolicited buyout offer from Concentra Biosciences, which is owned by Tang Capital, a minority shareholder of LianBio. The offer consists of $4.30 in cash per share of the company and a contingent value right that entitles the holder to 80% of the proceeds from any licensing or disposition of LianBio’s programs.
Concentra Biosciences, with Tang Capital as its controlling shareholder, seeks to acquire 100% of LianBio’s equity through this non-binding proposal. However, the deal is still subject to due diligence and would require a minimum of $515 million in cash and equivalents to be available at closing.
As of September 30th, LianBio reported having cash and cash equivalents worth $103.5 million. Additionally, they recently announced that they would earn $350 million from terminating an agreement with Bristol Myers Squibb for the licensing of heart-drug mavacamten in China and other Asian markets.
In light of these developments, LianBio has been conducting a strategic review alongside their ongoing discussions with Bristol Myers.
