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Health

AbbVie to develop and sell China-based I-Mab's cancer drug

FILE PHOTO: A screen displays the share price for drugmaker AbbVie on the floor of the New York Stock Exchange July 18, 2014. REUTERS/Brendan McDermid/File Photo

(Reuters) - U.S. drugmaker AbbVie Inc will pay $180 million in upfront payment to develop and sell Chinese biotech company I-Mab’s cancer drug, the companies said on Friday.

The U.S.-listed shares of I-Mab jumped 18.8% to $42.5 before the opening bell.

The agreement is the latest push by AbbVie into cancer therapies after its June collaboration with Denmark’s biotech firm Genmab AS to co-develop and market cancer drugs.

AbbVie will pay an additional $1.74 billion in milestone payments for lemzoparlimab, the companies said, adding that I-Mab will retain the rights to sell the drug in China.

I-Mab, which started trading on the Nasdaq at the start of the year, is a biotech company that develops treatments for immuno-oncology and autoimmune diseases.

The companies said they will also work together in future drug trials relating to multiple cancers.

Reporting by Trisha Roy in Bengaluru; Editing by Arun Koyyur

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