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).
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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.
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%.
