LianBio, a troubled biotechnology company, has recently revealed its decision to wind down its operations, prompting a significant boost in its share prices by nearly 17% during premarket trading on Tuesday.
Winding Down Operations
LianBio's American Depositary Shares (ADS) are currently trading at $4.72, having remained within the range of $3.50 to $4.50 since late October. As part of its wind-down plan, the company's board has declared a special cash dividend of $4.80 per share.
Struggles and Challenges
Based in Shanghai, LianBio has faced considerable challenges in achieving profitability. In its third-quarter earnings report, the company revealed ongoing operating losses and an accumulated deficit of $540.2 million as of September 30.
Departure of Key Executives
In December, LianBio experienced the departure of its chief executive and chief financial officers. This development occurred shortly after the board opted not to pursue an unsolicited buyout offer from Concentra Biosciences, which had proposed a price of $4.30 per share.
Projected Timeline for Wind-Down
LianBio anticipates that the wind-down process, including staff layoffs and the sale of pipeline assets, will be completed by the end of 2024. Consequently, the ADS is expected to be delisted from the Nasdaq Global Market in March.
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