【Company Research】I-Mab BioPharma (IMAB US) – Multiple important clinical readouts in 2021

Achieved positive net profit in 2020. I-Mab reported 2020 revenue of RMB1,543mn (vs RMB30mn in 2019), and attributable net profit of RMB471mn (vs net loss of RMB1,452mn in 2019). The Company turned profitable in 2020 mainly due to the US$200mn upfront licensing payment from AbbVie. Thanks to the completion of IPO in Jan 2020 and a PIPE financing in Sep 2020, the Company has accumulated RMB4.8bn cash on hand by end-2020 (vs RMB1.2bn in 2019). With strong cash positioning, we expect the Company to further expedite its R&D efforts. In 2020, I-Mab’s R&D cost increased 17.2% YoY to RMB985mn.

Accelerate the development of TJC4 (lemzoparlimab, CD47 mAb) with the global collaboration with AbbVie. In Sep 2020, I-Mab granted AbbVie a global license of lemzoparlimab valued at US$1.94bn. In the US, I-Mab is progressing a Ph1 trial (NCT03934814), studying lemzoparlimab in combination with rituximab or pembrolizumab in NHL or advanced solid tumors, respectively. In this study, lemzoparlimab exhibited outstanding preliminary safety and efficacy profile with no DLT and no G3 anemia. The 30 mg/kg monotherapy cohort (N=3) showed 33.3% ORR and 66.6% DCR. We expect preliminary results from this on-going trial of lemzoparlimab + pembrolizumab in patients with NSCLC and ovarian cancers by 4Q21. Furthermore, topline results from the on-going NHL clinical study, involving both the US and China clinical sites, are expected by 4Q21. I-Mab is initiating a ph2 trial of lemzoparlimab combo AZA in untreated AML/MDS in 2Q21. The Company also plans to start a trial of lemzoparlimab in combo with PD-1 in selected solid tumors in 2H21, and a combination study of lemzoparlimab with felzartamab in MM in 2H21. We also expect significant clinical synergies between I-Mab's lemzoparlimab and AbbVie's Venclexta (Venetoclax, a Bcl-2 inhibitor) and other transformative therapies.

Rich R&D catalysts in 2021. Felzartamab (TJ202, anti-CD38 mAb) will submit NDA to the NMPA for 3L MM in 4Q21E, becoming the first commercial asset for I-Mab. Uliledlimab (TJD5, anti-CD73 mAb) demonstrated superior safety and favorable clinical activity in solid tumors in its US ph1 trial (mono lead-in followed by combo atezolizumab). Topline results will be presented at 2021 ASCO Meeting in June. Based on superior ph1 data, we think uliledlimab is likely to achieve a sizable out-licensing deal in 2021E. TJ210 (MOR210, anti-C5aR1 mAb) had first patient dosed in a ph1 study in solid tumors in the US. I-Mab also added two clinical stage bi-specific assets, including TJ-CD4B (Claudin 18.2/4-1BB) and TJ-L14B (PD-L1/4-1BB).

Maintain BUY. We expect I-Mab to file NDA of TJ202 (anti-CD38 mAb) as a mono-therapy for treatment of 3L MM in in 4Q21E. Given the rich progresses of Company’s pipeline assets and I-Mab’s excellent clinical execution, we raised our DCF-based TP is lifted from US$71.10 to US$72.49 (WACC: 10.6%, terminal growth rate: 3.0%).