I-Mab Announces 1H 2024 Financial Results, Pipeline Progress, and Business Updates

I-Mab, a U.S.-based global biotech company specializing in advanced immunotherapies for cancer, recently presented its financial results for the first half of 2024 and shared significant progress in its clinical pipeline. The company has restructured to operate primarily from the United States, completing the divestiture of its Chinese operations and transitioning to a U.S.-based leadership and auditing framework. This restructuring included appointing new key executives and shifting to U.S.-based auditors.

Dr. Sean Fu, interim CEO, emphasized the company's successful execution of its strategic plan, which included the divestiture of Chinese operations and advancing its oncology programs. Key personnel changes featured the addition of Phillip Dennis, an expert in lung cancer, as Chief Medical Officer, and Joseph Skelton, an experienced investment banker, as Chief Financial Officer.

The company's pipeline has shown promising developments. Uliledlimab, a CD73 antibody, received IND clearance, paving the way for combination studies in the U.S. targeting first-line metastatic non-small cell lung cancer (mNSCLC). Previously, a Phase 2 study indicated a 63% overall response rate in patients with high CD73 expression. Future studies will explore combinations with pembrolizumab and chemotherapy, with patient enrollment expected to start in early 2025.

Givastomig, a Claudin 18.2 x 4-1BB bispecific antibody, is under Phase 1b trials focused on metastatic gastric cancer. Early data indicated positive responses in patients whose tumors were refractory to previous treatments. A collaboration with Bristol Myers Squibb aims to further explore this drug's efficacy in combination with nivolumab and chemotherapy, with results anticipated in the latter half of 2025.

Ragistomig, another bispecific antibody targeting PD-L1 and 4-1BB, demonstrated promising results in early trials, showing significant responses in patients with advanced solid tumors. The Phase 1 study continues, aiming to further validate these findings.

Financially, I-Mab reported having $207.5 million in cash and equivalents as of June 30, 2024, providing a runway until 2027. The company also completed a significant share repurchase program totaling $5.2 million. However, I-Mab did not generate revenue for the first half of 2024, a decline from the previous year when revenues came from a now-terminated collaboration with AbbVie.

Research and development expenses increased to $10.8 million in the first half of 2024, driven by costs related to clinical trials for uliledlimab and givastomig. Administrative expenses rose to $14.3 million due to legal fees and costs associated with establishing a new operational model. Despite these increases, the net loss from continuing operations decreased significantly compared to the same period in 2023.

I-Mab's divestiture of its Chinese operations, completed on April 2, 2024, marked a strategic shift for the company. This move included the transfer of equity interest in I-Mab Shanghai and resulted in a gain of $31.9 million. The transaction also involved settling obligations and investments in the newly independent entity, now known as Tianjing Biopharma.

Additionally, I-Mab continues to be involved in litigation concerning trade secret claims against Inhibrx and Dr. Brendan Eckelman, seeking damages for alleged misappropriation. The trial is set for October 2024.

In conclusion, I-Mab's transition to a U.S.-based entity and focused progress in its clinical pipeline positions it well for future milestones. The company's robust cash position and strategic collaborations indicate a promising trajectory in developing innovative cancer therapies.