I-Mab receives arbitration award relating to Tracon CD73 antibody pact

I-Mab (IMAB) announced the outcome of its arbitration with Tracon Pharmaceuticals (TCON) relating to the collaboration agreement to co-develop I-Mab’s proprietary CD73 antibody, uliledlimab and the collaboration agreement to potentially co-develop I-Mab’s bi-specific antibodies. The arbitration award concluded the multi-year long dispute between I-Mab and Tracon. The award determined that the TJD5 Agreement has been terminated for a pre-agreed termination fee of $9M plus interest payable by I-Mab pursuant to the original TJD5 Agreement, and, therefore Tracon has no rights to share any future economics with I-Mab. The arbitration award completely denied Tracon’s groundless damages claim of over $200M for any breach under the BsAb Agreement and awarded no damages to Tracon. The Tribunal also confirmed the termination of the BsAb Agreement. Based on the arbitration award, I-Mab will bear a portion of Tracon’s legal fees and costs, totaling approximately $13.5M. The resolution is crucial for I-Mab to preserve and further realize the value of uliledlimab and the bi-specific antibody portfolio through accelerating clinical development and on-going global partnership discussions. With these matters resolved, I-Mab is now in a position to accelerate the development and global partnership for uliledlimab and bi-specific antibody assets, which have the potential to create substantial value for the Company as soon as early 2024. This arbitration award is final and binding on the parties, and I-Mab intends to pursue confirmation of the award promptly.