I-Mab Seeks Multibillion-Dollar Cancer Drug Partnership

(Bloomberg) — I-Mab is seeking a partner to jointly develop a cancer drug in the U.S. and Europe as the Chinese firm aims to replicate the success of last year’s $2.9 billion deal with AbbVie Inc., according to people familiar with the matter.

The Shanghai-based drug developer is working with advisers and is in talks with several global pharmaceutical companies over a potential deal for its Uliledlimab, or TJD5, treatment that could be worth a few billion dollars, the people said, asking not to be identified because the matter is private.

A potential collaboration agreement would involve an upfront cash payment as well as so-called milestone payments based on achieving performance targets, the people said. I-Mab would also get royalties from future sales of the drug, they said.

Uliledlimab is a humanized CD73 antibody for use in cancer treatment. This month, I-Mab presented positive data from its U.S. Phase I study in combination with Swiss drugmaker Roche Holding AG’s atezolizumab, or Tecentriq, in patients with advanced tumors. The combined treatment is safe and well tolerated with no dose-limiting toxicity, according to a statement.

The potential partner would lead the clinical and commercial effort for the drug both in the U.S. and Europe, while I-Mab would retain the rights to develop and sell it in Asia, the people said. The Chinese company could also consider keeping a minority stake over the rights of the drug in the Western world, they said.

I-Mab aims to announce a partnership agreement as early as the next few quarters, the people said. The company is also considering raising equity via a secondary listing in China on the back of the partnership deal, they said. The Nasdaq-traded firm said in March it was considering additional equity listings on Greater China exchanges such as Shanghai and Hong Kong.

Details such as the size, structure and timing of the deal are still under consideration and haven’t been finalized, the people said.

I-Mab’s U.S.-traded shares rose as much as 2.6% Monday. An I-Mab representative didn’t immediately respond to requests for comment sent during a public holiday in China.

A deal could be similar to I-Mab’s partnership with U.S. pharmaceutical company AbbVie last year. As part of that agreement, North Chicago, Illinois-based AbbVie won an exclusive global license to develop and sell I-Mab’s cancer-fighting drug lemzoparlimab, also known as TJC4, outside Greater China. Separately, I-Mab also announced at the time that a consortium led by Hillhouse Capital had agreed to invest $418 million through a private placement.

The company raised $114 million in a U.S. initial public offering last year. Its shares have jumped by more than half this year, giving the company a market value of about $5.5 billion.

Contact editor Michael Bellart (michaelbellart@caixin.com)

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