Biotech company I-Mab (IMAB) revealed that it has bagged permission from the Center for Drug Evaluation (CDE) of China’s National Medical Products Administration to conduct a phase 2 trial of enoblituzumab in combination with pembrolizumab in China.
Shares of the company declined 1.3% on Monday to close at $46.33 per share.
The drug has been designed to treat tumors, including non-small cell lung cancer, urothelial carcinoma, and other selected cancers. Notably, I-Mab procured rights to develop and commercialize enoblituzumab in Greater China from MacroGenics (MGNX).
In the phase 2 trial, I-Mab seeks to study the efficacy of the combination of enoblituzumab and pembrolizumab.
Simultaneously, MacroGenics is conducting a phase 2 study of enoblituzumab in combination with retifanlimab or tebotelimab for first-line treatment of patients with recurrent or metastatic SCCHN.
The President of I-Mab, Dr. Andrew Zhu, said, “The initiation of the phase 2 clinical trial will accelerate the clinical development of enoblituzumab in China. Enoblituzumab has become a key player against various advanced cancers and one of the Company’s core clinical assets. We are excited about the initiation of this clinical study and expect to bring this valuable compound to cancer patients with critical unmet medical needs.”
Stock Rating
Last week, Needham analyst Gil Blum reiterated a Buy rating on I-Mab with a price target of $85. The price target implies 83.5% upside potential from current level.
Blum noted, “The shifts in management suggest a stronger emphasis on promoting the commercial aspects of I-Mab in China and expand strategic collaboration outside of China. I-Mab will continue to pursue its dual track development strategy bringing innovative medicines to commercialization for the Chinese market while simultaneously licensing them globally.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys. The I-Mab stock price prediction of $90.50 implies 95.3% upside potential to current levels.
Smart Score
According to TipRanks’ Smart Score system, IMAB gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.
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