RTTNews | Sep 4, 2020 09:49AM EDT

09:49 Friday, September 4, 2020 (RTTNews.com) - Shares of I-Mab (IMAB) jumped over 10% on Friday morning after the Chinese biotech company announced a collaboration deal with AbbVie Inc. (ABBV) to develop and sell I-Mab's lemzoparlimab for the treatment of multiple cancers. The deal could be worth more than $2 billion.

IMAB is currently trading at $39.67, up $3.90 or 10.90%, on the Nasdaq.

Under terms of the agreement, AbbVie will pay I-Mab $200 million, including a $180 million upfront payment and $20 million in a milestone payment based on Phase 1 trial results. In addition, I-Mab will be eligible to receive up to $1.74 billion in milestone payments, including up to $840 million for clinical development and regulatory approval milestones and the rest on commercialization milestones. AbbVie will also pay royalties from low-to-mid teen percentages on lemzoparlimab international sales.

Separately, I-Mab also announced that a consortium led by Hillhouse Capital has agreed to invest $418 million through a private placement. The deal includes an offering of 29.1 million shares at $33 for each of I-Mab's American depositary shares, according to a statement. The placement will also see the issue of warrants worth an additional $104.5 million if fully exercised.

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