I-Mab’s stock soars after AbbVie collaboration, which could be worth nearly $2 billion

/ / News

Shares of I-Mab soared 17% in premarket trading Friday toward a record high, after the China-based biotechnology company announced a collaboration agreement with AbbVie Inc. to develop and commercialize I-Mab’s lemzoparlimab for the treatment of multiple cancers. AbbVie’s stock edged up 0.1% ahead of the open. Under terms of the agreement, I-Mab will receive $200 million from AbbVie, including a $180 million upfront payment and $20 million in a milestone payment based on Phase 1 trial results. In addition, I-Mab will be eligible to receive up to $1.74 billion in milestone payments, including up to $840 million for clinical development and regulatory approval milestones and the rest on commercialization milestones. AbbVie will also pay royalties on lemzoparlimab sales outside of China. Separately, I-Mab said it entered into subscription agreements with a number of investors to raise $418 million through a private placement of shares. Shares of I-Mab, which went public in January, have soared 49.9% over the past three months through Thursday, while AbbVie’s stock has slipped 1.3% and the S&P 500 has gained 11.0%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.