Biopharma News: IMAB Stock Soars 4% on AbbVie Pact

I-Mab (NASDAQ:IMAB) is seeing gains to IMAB stock on Friday after the biopharma company announced news of a deal with AbbVie (NYSE:ABBV).

abbvie (ABBV) website and logo on mobile phone
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According to a news release, the biopharma company has signed a deal to license its lemzoparlimab cancer treatment to AbbVie. That has ABBV paying $180 million upfront for the rights and a possible $20 million more based on Phase 1 study results.

I-Mab notes that its deal with AbbVie also includes several other milestone payment options. In total, the company could receive as much as $1.74 billion, which includes milestone payments based on clinical trial performance, regulatory approval and commercial sales performance.

The deal also sets I-Mab up to receive royalty-based payments from AbbVie. This will have it receiving royalty payment percentages in the low to mid-teens for sales outside of greater China.

Thomas Hudson, M.D., senior vice president of R&D and chief scientific officer at AbbVie, said this about the biopharma news.

“Cancer is the second-leading cause of death globally and the need for novel cancer therapies has never been more acute. The addition of I-Mab’s novel CD47 programs complements our global clinical strategy in hematology and immuno-oncology. We have been impressed with what I-Mab has been able to accomplish in research and clinical development and we look forward to working together to make a meaningful difference in the lives of millions of patients globally.”

IMAB stock was up 3.6% as of Friday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/09/biopharma-news-boosts-imab-stock-on-abbv-deal/.

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