Chinese biotech I-Mab weighs options including sale

Bloomberg: Chinese biotechnology firm I-Mab is exploring options including a sale of the business amid takeover interest from other global drugmakers, according to people familiar with the matter.

The Nasdaq-traded company is working with advisers on a strategic review after drawing interest from US and European pharmaceutical giants seeking to expand in cancer therapies in the world’s second-largest economy, the people said.

I-Mab could also consider alternatives such as a merger with another company, or a stake sale tied to partnerships on specific drugs, the people said, asking not to be identified because the matter is private.

The firm’s American depositary receipts jumped as much as 19% in US trading, their biggest intraday gain in a month. They closed up 13%, giving the company a market capitalization of about $1.2 billion.

I-Mab stock has lost roughly three quarters of its value over the past year. Chinese companies traded in New York have been hammered by tensions between Washington and Beijing, including the looming threat of such firms being forced to delist from U.S. exchanges over an auditing dispute.

Considerations are at an early stage, and I-Mab could decide against pursuing a transaction, the people said. A representative for I-Mab didn’t immediately respond to requests for comment.

The biggest shareholders of I-Mab include private equity firms CBC Group and Hillhouse Capital, as well as Singaporean wealth fund GIC Pte. The company had 4.3 billion yuan ($671 million) in cash and equivalents at the end of December, its latest earnings report shows. That would provide enough funding for at least the next three years, it said, especially when combined with upcoming milestone payments from previous out-licensing deals and collaborations.

I-Mab has held talks with other global drugmakers about partnerships and investments, including clinical and commercial agreements in China, Bloomberg News reported in September. It’s also been seeking a partner to jointly develop its Uliledlimab, or TJD5, cancer treatment in the US and Europe, as well as other pipeline assets. A licensing deal would aim to replicate its $2.9 billion deal with AbbVie Inc. two years ago. I-Mab has also been pursuing a dual listing on Shanghai’s Nasdaq-style Star board exchange.