【Company Research】I-Mab BioPharma (IMAB US) – Innovation for biologics

14. I-Mab is well-positioned to become a biotech leader in China leveraging its innovative discovery expertise, fit-for-purpose technology platforms, biomarker-enabled translational medicine capabilities, and clinical development capabilities. To date, I-Mab has developed an innovative pipeline of more than 10 clinical and pre-clinical stage assets through its internal R&D and in-licensing efforts.

 

14. Fully-integrated capabilities in R&D, business development, production and commercialization. I-Mab’s R&D capabilities encompass discovery, biologics CMC development, pre-clinical development and clinical development with footprints in Shanghai, Beijing and the US. Meanwhile, leveraging its strong business development capabilities, I-Mab has completed several successful in-licensing and out-licensing deals. As for manufacturing, I-Mab is currently using CDMOs and is establishing its own manufacturing facility for the long term purpose.

 

14. Risk-balanced fast-to-market China strategy & fast-to-PoC global strategy. I-Mab has built a risk-balanced pipeline portfolio on two pillars: 1) a fast-to-market China strategy, focusing on seeking opportunities to in-license the development and commercialization rights of investigational drugs from global biopharmaceutical companies, and 2) a fast-to-PoC (proof of concept) global strategy, focusing on advancing its own novel or differentiated biologics towards clinical validation in the US.

 

14. Novel & highly differentiated biologics portfolio. TJ202, a highly differentiated anti-CD38 antibody for MM, is undergoing two registrational trials, including a third-line monotherapy trial and a second-line combination therapy trial, in MM in Taiwan and mainland China. For TJ101, a long-acting growth hormone, NMPA has accepted the IND application for a pivotal phase 3 trial in PGHD in Aug 2020. As for the global portfolio, TJM2, TJC4 and TJD5 are undergoing Phase 1 or Phase 2 clinical trials in the US.

 

14. Drug sales to start from 2021E. We forecast drug sales to start from 2021E assuming TJM2 to receive US FDA’s approval for treatment of severe COVID-19. We expect TJ202 to start commercialization in 2022E, TJ101 and TJC4 to be launched in 2024E, and TJD5 to come to the market in 2025E. To factor in the risk in drug development, we apply different probability of success (PoS) to our sales forecasts. We expect risk-adjusted revenue of RMB1,553mn/ RMB806mn in FY2021E/22E. We forecast net losses of RMB1,092mn/ RMB634mn / RMB1,076mn in FY20E/21E/22E.

  

• Initiate at BUY. We use DCF method to value the Company and we derive TP of US$41.30 based on 15-year risk-adjusted DCF model (WACC: 10.60%, terminal growth rate: 3.0%). Risks: Delay in R&D process; Competition from peers.