Why Is TRACON Pharma (TCON) Stock Down 51% Today?

  • TRACON Pharmaceuticals (TCON) stock is falling on a legal ruling.
  • The company wasn’t awarded damages in a dispute with I-Mab (IMAB).
  • However, some of its legal fees were covered.
TCON Stock - Why Is TRACON Pharma (TCON) Stock Down 51% Today?

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TRACON Pharmaceuticals (NASDAQ:TCON) stock is falling on Tuesday following an update on a legal battle with I-Mab (NASDAQ:IMAB).

The bad news for TCON stock comes from a legal ruling favoring I-Mab. That ruling determines that I-Mab doesn’t have to pay any damages to TRACON Pharmaceuticals. The ruling has to do with a deal between the two companies.

TRACON Pharmaceuticals and I-Mab signed a collaboration agreement for the development of CD73 antibody uliledlimab. The agreement was ended early with the agreed on $9 million fee plus interest.

The ruling says that TRACON Pharmaceuticals has no right to future economics with I-Mab. That shoots down its attempt at claiming $200 million in damages from I-Mab. However, I-Mab will have to pay $13.5 million in TCON’s legal fees.

Charles Theuer, M.D., Ph.D., President and CEO of TRACON Pharmaceuticals, said the following about the news:

“We are pleased to receive an award from the ICC tribunal, that we believe will extend our runway into 2024 past the expected interim efficacy results from ENVASARC. We remain focused on the pivotal ENVASARC Phase 2 trial and expect to complete enrollment this year.”

TCON Stock Reaction

Today’s legal news has shares of TCON stock seeing heavy trading on Tuesday. As of this writing, more than 635,000 shares of the stock have changed hands. For comparison, the company’s daily average trading volume is about 75,000 shares.

TCON stock is down 51.1% during pre-market trading today.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/why-is-tracon-pharma-tcon-stock-down-51-today/.

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