Our Stock of the Week is LianBio (LIAN). LIAN is a China-based company focused on bringing innovative therapies to China, which is the second-largest pharmaceutical market globally at $220 billion per year.
LIAN is controlled by biotechnology hedge fund giant Perceptive Advisors. Perceptive Advisor’s strategy is to license drugs that are approved in the US and market them in China. The risk of Chinese approval is greatly reduced once the drugs are approved in the US.
The FDA is scheduled to issue a PFUFA on Thursday for Mavacamten, which is owned by Bristol Myers Squib. LIAN is partnered to market the drug in China. There is a very large market for this drug in China.
LIAN has a number of other partnerships, and we believe it has very substantial upside in the longer term, but we are looking for a short-term trade in anticipation of a favorable FDA decision on Thursday. We are not looking to hold a position into the decision but are playing the likely positive anticipation that may develop.
As always, we would not chase strength on Monday but will be aggressively trading the volatility in front of the news.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in LIAN To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.