I-Mab (NASDAQ:IMAB) recently went through an arbitration tribunal with Tracon Pharmaceuticals (NASDAQ:TCON) over a couple of collaboration agreements. The verdict? No damages were awarded to Tracon, but I-Mab’s on the hook for about $13.5 million of Tracon’s legal fees. The dispute centered around two agreements: one for I-Mab’s unique CD73 antibody uliledlimab (TJD5) and another for co-developing I-Mab’s bi-specific antibodies (BsAb).
The tribunal decided that the TJD5 agreement was terminated, with I-Mab owing a pre-agreed fee of $9 million plus interest. This means Tracon won’t be sharing any future profits with I-Mab. On top of that, the tribunal shot down Tracon’s massive $200 million damages claim related to the BsAb agreement. Andrew Zhu, I-Mab’s President and acting CEO, sees this as a major win for the company and its shareholders. Now, I-Mab is gearing up to fast-track the development and global partnerships for uliledlimab and bi-specific antibody assets, potentially creating value as soon as 2024.
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Clearly, today’s news had significantly different impacts on the aforementioned companies. Indeed, IMAB stock is slightly up, while TCON stock plunged by more than 40%.