I-Mab (NASDAQ: IMAB), a biotech company transitioning to a U.S.-based entity, has announced plans to divest all its assets in China. The company has entered into agreements with I-Mab Biopharma (Hangzhou) Co., Ltd and a consortium of Chinese investors to sell its operations in China, including its remaining equity interest in I-Mab Biopharma Co., Ltd (I-Mab Shanghai), for a total consideration of up to $80 million in renminbi equivalent. The deal includes future regulatory and sales-based milestone provisions to be met by the Hangzhou firm.
Post-divestiture, I-Mab will continue to advance its existing pipeline outside of China, which includes candidates such as eftansomatropin alfa, felzartamab, uliledlimab, givastomig, and lemzoparlimab. I-Mab Hangzhou will acquire development rights for these molecules in Greater China and will assume all future development costs. Meanwhile, the U.S. entity will retain a right of first negotiation for three investigational new drugs emerging from the Shanghai R&D center.
Founded in Shanghai in 2014 by Dr. Zang Jingwu, former head of GSK’s China R&D center, I-Mab has garnered support from investors like C-Bridge Capital (CBC Group). The company announced its global ambitions with the establishment of a Maryland office in 2018 and subsequently listed on Nasdaq in January 2020. I-Mab partnered with AbbVie in 2022 for the anti-CD47 antibody lemzoparlimab, although AbbVie returned ex-China rights to the drug in September 2023. Other notable pipeline candidates include the Phase I Claudin 18.2/4-1BB bispecific antibody givastomig and the Phase II CD73 monoclonal antibody uliledlimab. Notably, the growth hormone eftansomatropin alfa completed a Phase III trial in China last year and is poised for launch later this year.
Dr. Zang will step down as board chairman at I-Mab to lead the Hangzhou entity, while I-Mab CEO Raj Kannan, appointed in June 2023, characterized the divestiture as a significant milestone aimed at sharpening the company’s focus on U.S. and ex-China markets, alongside reducing operational costs.- Flcube.com
