I-Mab Chairman plans $2 million ADS purchase

ROCKVILLE, Md. - I-Mab (NASDAQ: IMAB), a biotech company specializing in precision immuno-oncology treatments for cancer, disclosed that Chairman Wei Fu intends to buy up to $2 million of the company's American Depository Shares (ADSs). With shares currently trading at $0.98, representing a 15.58% gain over the past week according to InvestingPro data, the purchase will be conducted on the open market through a controlled entity associated with Fu, making the exact number and timing of the purchases uncertain.

Wei Fu, who also serves as the CEO of CBC Group, expressed confidence in the company's strategic direction for the previous year and its alignment with increasing shareholder value. I-Mab has recently prioritized its product portfolio, focusing on givastomig, a cancer treatment antibody, as its primary clinical program. Early results from ongoing studies on givastomig are expected in the latter half of 2025, with further data anticipated in early 2026. The company's financial runway is projected to extend into 2027, supported by a strong liquidity position with a current ratio of 15.99 and minimal debt-to-equity ratio of 0.02, as revealed by InvestingPro analysis.

Based in the United States with operations in Maryland and New Jersey, I-Mab is at the forefront of developing treatments aimed at specific cancer types. With a market capitalization of approximately $80 million, the company appears undervalued according to InvestingPro Fair Value metrics, while analyst price targets range from $5 to $8 per share. The company's announcement of the intended ADS purchase by its chairman is based on a press release statement and reflects a vote of confidence by the leadership in the company's future.

The press release also included forward-looking statements concerning I-Mab's pipeline, study timings, and the potential market purchases by Wei Fu. These statements are subject to risks and uncertainties that could cause actual results to differ from expectations. I-Mab has emphasized that these forward-looking statements are under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Investors and stakeholders are reminded that forward-looking statements are not guarantees of future performance and involve risks and uncertainties. I-Mab's future results may differ materially from those projected in the forward-looking statements due to various factors, including the progress of clinical trials, regulatory decisions, and the company's ability to protect its intellectual property and fund its operations.

In other recent news, I-Mab has announced the appointment of Sean Fu as its new CEO, effective from November 1, 2024. Fu, with over two decades of experience in the life sciences industry, is expected to continue the company's progress in clinical programs and the development of transformative cancer therapies. I-Mab has also reported encouraging results from its Phase 1 clinical trial of givastomig, a novel bispecific antibody immunostimulant for the treatment of advanced gastric cancers. The FDA granted Orphan Drug Designation to givastomig in March 2022. Piper Sandler, an analyst firm, has maintained an Overweight rating on I-Mab, anticipating that givastomig will be well-positioned as it progresses into combination trials. The company has also revealed Phase 1 data for uliledlimab, a potential treatment for metastatic non-small cell lung cancer. As part of recent developments, I-Mab has secured a cash balance of $207.5 million as of mid-2024, expected to support operations until 2027. These updates reflect I-Mab's strategic focus on advancing cancer immunotherapy.

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