I-Mab tanks as AbbVie amends terms of collaboration

Shares of China-based immuno-oncology-focussed biotech I-Mab Biopharma (Nasdaq: IMAB) plunged more than 13% to $6.90 yesterday, after the company revealed in a filing with the Securities and Exchange Commissions that AbbVie (NYSE: ABBV) has discontinued a Phase I trial of I-Mab's anti-CD47 monoclonal antibody lemzoparlimab, which the US pharma major in-licensed for an upfront $180 million 2020.

The parties will continue to collaborate on the global development of anti-CD47 antibody therapy under the agreement. I-Mab will be eligible to receive, and AbbVie will pay, up to $1.295 billion in the development, regulatory and sales milestone payments, and the tiered royalties at rates from mid-to-high single digit percentages on global net sales outside of Greater China for certain new anti-CD47 antibodies currently in development, or the original milestone payments and tiered royalties previously disclosed in the company’s Form 20-F for the fiscal year 2021 for other licensed products. I-Mab has the exclusive right to develop and commercialize all licensed products under the agreement in Greater China.

AbbVie will discontinue the global Phase Ib study of lemzoparlimab combination therapy with azacitidine (AZA) and venetoclax, in patients with myelodysplastic syndrome (MDS) and acute myelocytic leukemia (AML). This decision was not based on any specific or unexpected safety concerns.