IMAB - Tracon stock slumps ~15% after I-Mab gets favorable ruling in arbitration

2023-04-25 06:01:16 ET

I-Mab ( NASDAQ: IMAB ) said an arbitration tribunal awarded no damages to Tracon Pharmaceuticals ( NASDAQ: TCON ) related to a collaboration agreement but the company would have to pay part of Tracon's legal fees of ~$13.5M.

Chinese biotech I-Mab noted that the arbitration was relating to 1) a collaboration agreement to co-develop I-Mab's proprietary CD73 antibody uliledlimab (TJD5) (TJD5 agreement); and 2) a collaboration agreement to potentially co-develop I-Mab's bi-specific antibodies (BsAb agreement).

I-Mab said the the tribunal determined that the TJD5 agreement was terminated for a pre-agreed termination fee of $9M plus interest payable by I-Mab under the original deal, and therefore Tracon has no rights to share any future economics with I-Mab.

The arbitration award denied Tracon's damages claim of over $200M for any breach under the BsAb agreement and awarded no damages to Tracon, I-Mab added.

The tribunal also confirmed the termination of the BsAb agreement, according to the company.

However, based on the arbitration award, I-Mab will bear a portion of Tracon's legal fees and costs of about $13.5M.

"This is an important victory for I-Mab and its shareholders on multiple levels, both from a legal and business standpoint, as I-Mab successfully protected and preserved its shareholder's value and I-Mab's rights of its proprietary CD73 antibody, uliledlimab, and bi-specific antibody assets," said Andrew Zhu, president and acting CEO, I-Mab.

I-Mab intends to accelerate development and global partnership for uliledlimab and bi-specific antibody assets, which have the potential to create value for it as soon as early 2024.

TCON -15.73% to $1.50 premarket April 25

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