ROCKVILLE, Md. - I-Mab (NASDAQ: IMAB), a global biotech company specializing in cancer immunotherapies and biologics, announced today that it has reached definitive agreements to divest its Chinese subsidiaries. This move is part of I-Mab's strategy to realign its focus on the U.S. and other markets outside China.
The company's Chinese operations will be sold to I-Mab Biopharma (Hangzhou) Co., Ltd., an unaffiliated entity, and a consortium of China-based investors for up to $80M, contingent on future milestones. This transaction will see I-Mab Shanghai's equity transferred on a cash-free and debt-free basis. Additionally, I-Mab Biopharma Hong Kong Limited will exchange its equity interests in the Hangzhou Company to extinguish approximately $183M in repurchase obligations.
I-Mab will retain the ex-China rights to its clinical stage assets, including givastomig, uliledlimab, and TJ-L14B, while maintaining its NASDAQ listing. The company also holds a right of first negotiation outside of Greater China for three investigational new drug candidates.
The Special Committee to the Board of Directors, consisting of independent directors, led the transaction's evaluation and negotiation. The Board, advised by Kroll, LLC, and acting upon the Special Committee's unanimous recommendation, approved the transaction, which is expected to close by the end of March 2024.
Following the divestiture, the Hangzhou Company will acquire I-Mab's drug assets in China, including rights for several drug candidates, and assume responsibility for the R&D center and manufacturing facility operations.
Concurrent with this agreement, I-Mab participated in the Hangzhou Company's Series C fundraising with a $19M equity interest subscription. Post-transaction, I-Mab will own less than 10% of the Hangzhou Company's registered capital.
In line with its U.S. focus, I-Mab announced key management changes. Pamela Klein, M.D., will become the Interim Chairperson as Jingwu Zang, M.D., Ph.D., departs to lead the Hangzhou Company. Andrew Zhu, M.D., Ph.D., will also step down, and Joseph Skelton has been appointed as the new Chief Financial Officer.
This strategic realignment is aimed at streamlining operations, reducing costs, and mitigating risks while preserving capital for key priorities and potential new opportunities.
The information in this article is based on a press release statement from I-Mab.
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