Tracon announces $23M arbitration award in dispute with I-Mab

TRACON Pharmaceuticals (TCON) announced that the tribunal in the arbitration against I-Mab (IMAB) conducted under the Rules of Arbitration of the International Chamber of Commerce rendered an award to TRACON in the aggregate amount of approximately $23M. In November 2018, TRACON entered into two separate strategic collaboration and clinical trial agreements with I-Mab for the development of multiple immuno-oncology programs, including I-Mab’s proprietary CD73 antibody TJ004309 as well as up to five proprietary bispecific antibodies under development by I-Mab. I-Mab commenced arbitration in June 2020, after TRACON invoked contractual dispute resolution provisions asserting that I-Mab had breached its contractual obligations. I-Mab initiated the arbitration seeking a declaration that they were not in breach of either agreement, and TRACON filed counterclaims soon thereafter. Among other findings, the ICC tribunal deemed the TJ004309 trial complete as of January 2022, which entitled TRACON to $9M plus interest, and awarded legal fees and costs to TRACON. The award is made pursuant to a binding arbitration, and both agreements are now terminated. "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," said Charles Theuer, CEO."We remain focused on the pivotal ENVASARC Phase 2 trial and expect to complete enrollment this year."