I-Mab Transitions to US-focused Biotech with Divestment of Chinese Operations

Highlights:

1. I-Mab, a global biotech company, has announced a significant transformation by signing an agreement to divest its assets and business operations in China.
2. The transaction, as part of I-Mab's strategy to become a U.S.-based biotech, involves the transfer of its Chinese subsidiaries to a group of China-based investors and an unconsolidated affiliate, I-Mab Biopharma (Hangzhou) Co., Ltd.
3. The agreement includes a potential consideration of the RMB equivalent of up to US$80 million, contingent on the Hangzhou Company group achieving future regulatory and sales-based milestone events.
4. I-Mab will retain a right of first negotiation outside of Greater China related to several investigational new drug assets.
5. The move is part of I-Mab's focus on its ex-China markets and the U.S., signaling an intent to consolidate strategically and reallocate capital.
6. The transaction is subject to closing conditions and is expected to be completed by the end of March 2024.
7. Dr. Pamela Klein has been appointed Interim Chairperson of the Board, signaling I-Mab's continued progress toward this strategic plan.

These developments demonstrate that I-Mab is shifting its focus to the U.S. and the ex-China market, shedding its China footprint to align with the current geopolitical landscape. I-Mab's global presence includes operations in the U.S., having established R&D sites in Rockville, Maryland, and San Diego, California.