I-Mab Declares Positive Outcome In Arbitration Relating To Agreements With Tracon Pharma

I-Mab, a clinical-stage biopharmaceutical company committed to the discovery, development, and commercialization of novel biologics, announced the positive outcome of its arbitration with Tracon Pharmaceuticals (Tracon) relating to (1) the collaboration agreement to co-develop I-Mab's proprietary CD73 antibody, uliledlimab (TJD5) (the "TJD5 Agreement"), and (2) the collaboration agreement to potentially co-develop I-Mab's bi-specific antibodies (the "BsAb Agreement"). The arbitration ruling brought an end to the multi-year dispute between I-Mab and Tracon.

The judgement concluded that the TJD5 Agreement was terminated for a pre-agreed termination fee of $9 million plus interest owed by I-Mab under the original TJD5 Agreement, and Tracon has no rights to share any future economics with I-Mab as a result. The arbitration ruling entirely rejected Tracon's baseless damages claim of more than $200 million for any breach of the BsAb Agreement and awarded Tracon no damages. The Tribunal also confirmed the BsAb Agreement's cancellation.

According to the arbitration ruling, I-Mab will be responsible for a part of Tracon's legal fees and costs, which total nearly $13.5 million. Through accelerated clinical development and ongoing worldwide partnership conversations, the resolution is critical for I-Mab to maintain and further realise the value of uliledlimab and the bi-specific antibody repertoire. "This is an important victory for I-Mab and its shareholders on multiple levels, both legally and commercially," said Dr. Andrew Zhu, president and acting CEO of I-Mab. "I-Mab successfully protected and preserved its shareholder's value as well as I-Mab's rights to its proprietary CD73 antibody, uliledlimab, and bi-specific antibody assets."

With these issues resolved, I-Mab may now accelerate the development and global partnership for uliledlimab and bi-specific antibody assets, which have the potential to generate significant value for the company as early as 2024. The arbitral ruling is final and binding on the parties, and I-Mab plans to seek confirmation of the award as soon as possible. I-Mab is a dynamic global biotech firm focusing only on the discovery, development, and, soon, commercialization of innovative or highly differentiated biologics in the immuno-oncology and autoimmune disease therapeutic areas. Through innovation, the company's objective is to offer transformational medications to patients all across the world.