Shares of
LianBio
LIAN
were up 23.7% on Dec 19 after management announced that partner
Pfizer
PFE
exercised an option under an existing collaboration agreement.
Pfizer opted for the right to develop and commercialize sisunatovir, a respiratory syncytial virus (RSV) fusion inhibitor candidate, in Mainland China, Hong Kong, Macau and Singapore (hereinafter collectively referred to “Greater China”). Pfizer will now lead all development and commercialization activities related to sisunatovir in Greater China
In return for Pfizer exercising this option, LianBio will receive an upfront payment of $20 million, which will be released from previously restricted cash paid by Pfizer. In addition, LianBio will be eligible to receive up to $135 million in potential milestone payments and tiered low-single-digit royalties on future net product sales in Great China if the candidate is approved in the territories.
Earlier this June, Pfizer acquired privately held ReViral for a total consideration of up to $525 million, including potential milestone payments. The acquisition led to the addition of Reviral’s sisunatovir in Pfizer’s pipeline, which is being evaluated in mid-stage studies for treating RSV infections in adults and infants. The rights for developing and marketing the drug in Greater China were out-licensed to LianBio in March 2021 and were not included in the acquisition deal.
As a result of Pfizer exercising this right, LianBio will also be released from its obligations to pay any milestone or royalty payments on sisunatovir’s pipeline progress and future net product sales.
Shares of LianBio have plunged 72.9% in the year compared with the
industry
’s 19.7% decline.
Image Source: Zacks Investment Research
Pfizer is evaluating sisunatovir in a global phase II study in children. Prior to the acquisition, this candidate demonstrated the ability to reduce viral load in a mid-stage RSV human challenge study in healthy adults. The candidate has also been granted Fast Track designation in the United States. Following Pfizer’s opt-in to LianBio’s rights, Pfizer will now carry worldwide rights for sisunatovir.
LianBio entered into a strategic collaboration in 2020 with Pfizer to develop and market drugs in Greater China. The first program under development as part of this strategic collaboration is sisunatovir.
Zacks Rank & Stocks to Consider
LianBio currently carries a Zacks Rank #2 (Buy). A couple of better-ranked stock in the overall healthcare sector includes
Amarin
AMRN
and
Kamada
KMDA
. While Kamada sports a Zacks Rank #1 (Strong Buy), Amarin carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
In the past 60 days, estimates for Kamada’s 2022 loss per share have narrowed from 14 cents to 7 cents. During the same period, the earnings estimates per share for 2023 have risen from 26 cents to 42 cents. Shares of Kamada have declined 36.5% in the year-to-date period.
Earnings of Kamada beat estimates in two of the last four quarters and missed the mark twice, witnessing a negative earnings surprise of 62.50%, on average. In the last reported quarter, Kamada’s earnings beat estimates by 433.33%.
In the past 60 days, estimates for Amarin’s 2022 loss per share have narrowed from 19 cents to 13 cents. During the same period, the loss estimates per share for 2023 have narrowed from 16 cents to 8 cents. Shares of Amarin have plunged 64.7% in the year-to-date period.
Earnings of Amarin beat estimates in two of the last four quarters and missed the mark twice, witnessing a negative earnings surprise of 14.29%, on average. In the last reported quarter, Amarin’s earnings beat estimates by 200.00%.
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