Investing.com -- Shares of I-Mab (NASDAQ: IMAB ) leapt 16.4% following a new Buy rating from Lucid (NASDAQ: LCID ) Capital Markets analyst Chris Liu, who set a price target of $5.00. The biopharmaceutical company, which specializes in cancer therapeutics, saw its stock rise as Liu highlighted the potential of its Claudin18.2 x 4-1BB bispecific antibody, Givastomig, to significantly drive value with upcoming clinical data.
I-Mab’s promising therapy, Givastomig, is approaching critical phases in its development. Liu pointed out that the top-line Phase 1b combination dose escalation and dose expansion data in advanced gastric cancer patients are expected in the second half of 2025 and the first half of 2026, respectively. This anticipation has sparked investor interest, as the company prepares to present preliminary combination data at the ESMO GI 2025 conference.
The analyst’s optimism is rooted in the potential market for Givastomig, with a peak sales estimate of approximately $2.6 billion by 2040 in gastric cancer alone. Liu’s valuation also considers the drug’s design, which includes a highly potent CLDN18.2 monoclonal antibody, a silenced Fc region to prevent systemic immune adverse events, and a conditional 4-1BB agonist aimed at localized T-cell activation with minimized toxicity.
Liu commented on the broader implications for I-Mab’s pipeline, stating, "There could be further upside to our PT if givastomig is successful in earlier programs in indications such as pancreatic cancer and cholangiocarcinoma. Overall, our $5 PT is driven by givastomig (~$4/share) and earlier pipeline/platform value (~$1/share), which includes assets that are currently less core to the thesis (uliledlimab [CD73 monoclonal antibody] and ragistomig [PDL1 x 4-1BB bispecific antibody])."
The financial position of I-Mab also contributes to the positive outlook, with the company reporting cash and equivalents of around $168.6 million in the first quarter of 2025, providing a financial runway through several key data readouts and into 2027.
Investors have responded favorably to the analyst’s insights and the company’s progress, reflecting confidence in I-Mab’s strategic direction and the potential of its therapeutic pipeline.
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