In a strategic move to bolster its presence in the U.S. biotech landscape, I-Mab (NASDAQ: IMAB), a renowned global biotech firm specializing in groundbreaking immunotherapies for cancer treatment, announced the divestment of its assets and business operations in China. The company’s Chinese subsidiaries have entered into definitive agreements with I-Mab Biopharma (Hangzhou) Co., Ltd., and a consortium of China-based investors to offload its Chinese operations.
Raj Kannan, Director and CEO of I-Mab, emphasized the significance of this divestment, highlighting its role in streamlining operations and optimizing capital allocation. The transaction entails the transfer of I-Mab’s assets, including drug rights and development costs, to the Hangzhou Company, in exchange for up to US$80 million, contingent on future regulatory and sales-based milestones.
The divestment process was meticulously evaluated by a Special Committee of the Board, ensuring alignment with I-Mab’s strategic objectives. Concurrently, to reinforce its partnership with the Hangzhou Company, I-Mab participated in the Series C fundraising, subscribing to an equity interest of US$19 million.
Moreover, the transition to a U.S.-based biotech entity prompted key management changes. Dr. Pamela Klein assumes the role of Interim Chairperson, succeeding Dr. Jingwu Zang, who will spearhead the Hangzhou Company. Dr. Andrew Zhu and Mr. Richard Yeh stepped down from their positions, with Mr. Joseph Skelton appointed as the new CFO, bringing a wealth of experience in investment banking to drive financial strategies.
Dr. Klein expressed her commitment to leading I-Mab’s strategic evolution, emphasizing gratitude to departing board members and welcoming Mr. Skelton to the leadership team. The realignment underscores I-Mab’s dedication to advancing innovative medicines, steering toward a promising future in the U.S. biotech sphere.
