Why Did I-Mab Plunge 8.02% Despite Promising Pipeline?

On June 4, 2025, I-Mab's stock experienced a significant drop of 8.02% in pre-market trading, reflecting investor concerns and market sentiment towards the company's recent developments and future prospects.

I-Mab has been actively advancing its pipeline, particularly focusing on givastomig, a novel bispecific antibody targeting CLDN18.2 and 4-1BB. This therapeutic candidate has shown promising anti-tumor activity with limited toxicities in clinical trials, positioning it as a potential best-in-class treatment for gastric cancer. The company's Phase 1b escalation study of givastomig in combination with nivolumab plus chemotherapy is fully enrolled, with topline data expected to be presented at the ESMO GI 2025 conference. Additionally, the Phase 1b expansion study is enrolling ahead of schedule, with topline data anticipated in the first half of 2026.

I-Mab's strong capital position, with $168.6 million in cash as of March 31, 2025, provides a runway into 2027, covering expected clinical readouts for givastomig. The company's capital-efficient operating model, supported by a U.S.-based management team and clinical operations, further enhances its financial stability and operational efficiency.

Despite these advancements, the significant drop in I-Mab's stock price suggests that investors may be cautious about the company's ability to deliver on its promises. The competitive landscape in the gastric cancer market, with limited treatment options and a poor prognosis for patients, presents both opportunities and challenges for I-Mab. The company's success will depend on its ability to demonstrate the clinical efficacy and safety of givastomig, as well as its capacity to navigate the regulatory and commercialization processes.