© Reuters.

LianBio’s shares experienced a significant surge of 124% Tuesday morning following the termination of its mavacamten licensing agreement with Bristol Myers (NYSE:) Squibb. The termination of the agreement led to a $350 million windfall for LianBio and facilitated the transfer of exclusive development and commercialization rights for the FDA-approved heart medication, Camzyos, to Bristol Myers across several Asian territories.

This development comes on the heels of Bristol Myers’ acquisition of MyoKardia (NASDAQ:) for $13 billion in 2020. The termination also absolved LianBio from agreement obligations amounting to up to $127.5 million in future milestone payments.

The termination triggered an impending strategic review by LianBio, which is expected to conclude by the first half of 2024. Today’s developments resulted in a substantial rise in LianBio’s share price from $1.39 to $3.19.

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