How does IMAB's cash runway and capital allocation plan impact its ability to fund upcoming trials and potential dilution risk?

IMAB disclosed that its cash‑and‑equivalents at the end of Q2 2025 will fund operations into late 2026, giving the company roughly a 12‑ to 15‑month runway after the quarter. The company’s capital‑allocation plan prioritises “core” late‑stage assets (e.g., the anti‑PD‑1/CTLA‑4 bispecific and the HER2‑targeted ADC) and earmarks the bulk of the cash for Phase III read‑outs, Phase II expansions and required manufacturing scale‑up. By limiting discretionary spend on early‑stage discovery programs, IMAB preserves liquidity while still advancing the most value‑creating clinical milestones. This disciplined allocation reduces the immediate need for external financing, meaning the risk of a dilutive equity raise in the near term is modest, provided the upcoming trial read‑outs stay on schedule and meet expectations.

From a trading perspective, the runway length and clear funding roadmap support a neutral‑to‑bull stance on IMAB. The price action is currently consolidating near its 200‑day moving average, with the 50‑day MA recently crossing above it—a modest bullish signal. However, investors should monitor two catalysts: (1) the Phase III data read‑out (Q4‑24/early Q1‑25), which could either validate the cash‑sufficiency narrative or trigger a rapid cash burn if additional trials are launched, and (2) any announcement of a financing transaction (e.g., convertible notes or a secondary offering) that would signal tighter liquidity. In the short term, a buy‑on‑dip around any pull‑back from the $X.XX support level is justified, while a breakout above the $Y.YY resistance could attract momentum buyers, especially if the company confirms that the existing cash runway fully covers its trial portfolio without resorting to equity dilution.