LianBio on Tuesday said it plans to “wind down” its operations, including a sale of remaining assets and a reduction in force, delisting from Nasdaq and issuance of special cash dividend.
The Princeton-based biotechnology company announced that its board of directors had completed its comprehensive strategic review of the company and decided to initiate the wind-down of its operations.
The company expects to reduce its workforce by over 50 full-time employees, or approximately 50% of its current employee base, in the first quarter of 2024, with additional workforce reductions occurring over the course of 2024 following the transition of assets to partners and the fulfillment of the company’s transition services obligations. The complete dissolution expected to occur during the first half of 2027.
The company plans to maintain a core group of employees necessary to implement an organized wind-down of the company and support its efforts to maximize the value of the company’s remaining business and assets.
In parallel with the wind-down of operations, the board declared a special cash dividend in the amount of $4.80 per ordinary share, including ordinary shares represented by American depositary shares, for an aggregate cash dividend amount of approximately $528 million.
“In October 2023, the board of directors initiated a comprehensive strategic review of the Company, including numerous options for the future of the company, as our commitment to represent the best interests of LianBio and shareholders,” Konstantin Poukalov, founder and executive chairman of LianBio’s board, said.
