I-Mab to divest China operations

Immuno-oncology firm I-Mab Biopharma (Nasdaq: IMAB) saw its shares slip 4.5% to $1.91 pre-market today, as it announced that, as part of its strategy to become a USA-based biotech, it is divesting its Chinese subsidiaries.

I-Mab has entered into definitive agreements with I-Mab Biopharma (Hangzhou), the Hanzhou Company, an unconsolidated affiliate of the company, and a group of China-based investors to divest the company's assets and business operations in China.

"This agreement to divest our operations in China marks an important milestone for I-Mab in bringing a greater focus on the US and ex-China markets," said Raj Kannan, director and chief executive of I-Mab. "Importantly, we believe that this transaction allows us to reduce significant operational costs and enables us to reallocate our capital on current key priorities and new potential opportunities in further strengthening our portfolio while maintaining a strong balance sheet," he noted.