I-Mab Announces Strategic Pivot and Workforce Reduction Amid Pipeline Reprioritization

I-Mab, a Maryland-based biotech company, has disclosed significant changes to its operational structure and research focus, including a substantial workforce reduction and a shift in its drug development pipeline. These moves come as part of a broader strategy to streamline operations and concentrate resources on promising assets.

Pipeline Reprioritization and Focus on CLDN18.2 Bispecific

In early January, I-Mab announced a major pivot in its R&D pipeline, downgrading the priority of uliledlimab, an anti-CD73 antibody being developed in China in partnership with Sanofi. This decision was made to redirect resources towards the development of givastomig, a CLDN18.2x4-1BB bispecific antibody that has shown promise in early-stage clinical trials.

The company's emphasis on givastomig comes despite facing stiff competition in the CLDN18.2 space. I-Mab is positioning the bispecific as a potentially differentiated therapy, claiming it may be effective in patients with low levels of CLDN18.2 expression, potentially surpass the efficacy of Astellas' Vyloy, and offer a more tolerable profile compared to antibody-drug conjugates.

Workforce Reduction and Financial Implications

As a direct consequence of its pipeline reprioritization, I-Mab has implemented a significant workforce reduction. The company announced on Wednesday that it has cut approximately 27% of its staff, a move completed on Tuesday. This reduction comes on the heels of the company's year-end report for 2023, which indicated a total of 220 employees, with 36 located outside of China.

The workforce reduction is expected to result in annual savings of about $3 million for I-Mab. However, the company will incur one-time costs of approximately $800,000 in employee severance payments and other termination-related expenses. Despite these costs, I-Mab had previously stated that its cash runway would extend into 2027, although no update to this projection was provided in the latest announcement.

Upcoming Clinical Milestones

I-Mab has outlined key upcoming data readouts for givastomig, which will be crucial in determining the asset's potential and differentiation from competitors:

1. In the second half of 2025, the company expects to share dose-escalation data from a phase 1b trial.
2. In the first half of 2026, data from the dose-expansion stage of the phase 1b trial is anticipated.

These trials are assessing givastomig in combination with Bristol Myers Squibb's checkpoint inhibitor Opdivo and chemotherapy in patients with gastric cancer, gastroesophageal junction cancer, and esophageal adenocarcinoma.