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ROCKVILLE, Md. - I-Mab (NASDAQ:IMAB), a biotech company whose stock has surged over 100% in the past six months and currently trades at $2.15, announced Thursday it has entered into a definitive agreement to acquire Bridge Health Biotech Co., Ltd., securing upstream rights to the CLDN18.2 parental antibody used in its cancer therapy givastomig. According to InvestingPro analysis, the company maintains a strong financial health score of 2.52, labeled as "GOOD."
The acquisition provides I-Mab with rights to bispecific and multi-specific applications based on the Claudin 18.2 antibody, while eliminating future royalty obligations and reducing milestone payments previously owed to Bridge Health.
Under the agreement terms, I-Mab will pay Bridge Health shareholders an upfront payment of $1.8 million and non-contingent payments of $1.2 million through 2027, with potential additional milestone payments of up to $3.875 million. The transaction is expected to close in the third quarter of 2025. With a current ratio of 22.35 and more cash than debt on its balance sheet, I-Mab appears well-positioned to handle these financial commitments, though InvestingPro data indicates the company is currently burning through cash rapidly.
"The strategic acquisition of Bridge Health emphasizes I-Mab’s focus on enhancing the value of givastomig," said Sean Fu, Chief Executive Officer of I-Mab, in the press release.
Givastomig, a bispecific antibody targeting Claudin 18.2-positive tumor cells, is currently being developed for first-line metastatic gastric cancers with potential applications in other solid tumors. The company recently presented Phase 1b dose escalation data at the ESMO GI 2025 conference showing an 83% objective response rate at doses selected for expansion cohorts.
The CLDN18.2 parental antibody used in givastomig reportedly shows higher affinity to human CLDN18.2 than other antibodies, including those used in approved therapies. It also exhibits stronger binding affinity to cell lines expressing varying levels of CLDN18.2.
I-Mab expects to provide topline results from the Phase 1b dose expansion combination study in the first quarter of 2026. The company is jointly developing givastomig through a global partnership with ABL Bio, with I-Mab leading development and sharing worldwide rights equally with ABL Bio, excluding Greater China and South Korea.
The information in this article is based on a press release statement from I-Mab. With a market capitalization of $175.57 million and analyst price targets ranging from $5 to $7, the stock currently appears undervalued according to InvestingPro’s Fair Value model. Discover more insights about I-Mab and other undervalued opportunities with InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
In other recent news, I-Mab has reported significant developments in its clinical studies for the bispecific antibody givastomig. The company announced positive Phase 1b data showing an 83% objective response rate for givastomig in combination with nivolumab and mFOLFOX6 for gastric cancer treatment. This data was presented at the European Society for Medical Oncology Gastrointestinal Cancers Congress. The study included 17 treatment-naïve patients with metastatic gastric, esophageal, or gastroesophageal adenocarcinomas, showing a disease control rate of 100% across all dose levels. Additionally, H.C. Wainwright reiterated its buy rating for I-Mab, highlighting the potential of givastomig as a key value driver, describing it as a potential "best-in-class" asset. The research firm noted the drug’s promising response rates and durability signals in patients with varying biomarker-defined subgroups. Moreover, I-Mab has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its shares continue trading without compliance concerns. These developments come as the company continues to explore givastomig’s applications in first-line metastatic gastric cancers and potentially other solid tumors.
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