I-Mab Announces Major Workforce Reduction Amid Pipeline Reprioritization

I-Mab, a Maryland-based immuno-oncology company, has announced a significant workforce reduction of 27% as part of its strategic pipeline reprioritization. The move comes weeks after the company disclosed plans to focus its resources on advancing its lead molecule, givastomig, a CLDN18.2 and 4-1BB bispecific antibody for certain metastatic gastric cancers.

Workforce Reduction and Financial Impact

The layoffs, which were completed on Tuesday, are expected to result in employee severance payments and other termination costs of approximately $800,000. However, I-Mab anticipates annual savings of about $3 million as a result of these changes. The company had 220 total employees at the end of 2023, though most were associated with its now-divested China operation. The current workforce reduction primarily affects the 36 employees based outside of China.

Pipeline Reprioritization and Clinical Trials

I-Mab's strategic shift involves focusing on givastomig, which is currently in Phase Ib trials. The ongoing study combines givastomig with Bristol Myers Squibb's checkpoint inhibitor Opdivo and chemotherapy for patients with gastric cancer, gastroesophageal junction cancer, and esophageal adenocarcinoma. Key data readouts are expected in the second half of 2025, with additional trial results anticipated in 2026.

As part of this reprioritization, I-Mab has deprioritized uliledlimab, an anti-CD73 antibody being developed by Sanofi in China. The company is also recruiting for a Phase I trial of TJ210001, another bispecific antibody targeting C5aR for advanced, relapsed, or refractory solid tumors.

Financial Outlook and Industry Context

Despite the restructuring costs, I-Mab's financial position remains stable. As of September 30, 2024, the company reported $184.4 million in cash on hand. I-Mab expects its current resources to sustain operations until at least 2027, assuming no new cash infusions.

The company's pipeline changes come in the wake of a terminated collaboration with AbbVie in 2023, which had potential milestone payments of up to $1.3 billion for anti-CD47 molecules. I-Mab is now positioning givastomig as a potentially differentiated candidate in the competitive CLDN18.2 space, claiming it may work in patients with low levels of CLDN18.2 expression, surpass the efficacy of Astellas' Vyloy, and offer better tolerability than antibody-drug conjugates.