health
Biotech takeover target Abivax sinks over 43% as cancer cases cloud trial data for bowel disease drug
A clinical trial update wiped out billions in the French company's market cap and raised questions over a potential takeover.
TL;DR
- Abivax shares fell 43.6% following new data on its ulcerative colitis drug, obefazimod.
- The drug met efficacy endpoints but showed cancer cases among patients, particularly at the higher dose.
- Investigative assessments suggest the cancer cases are unrelated to the treatment.
- Analysts expressed concerns about the "cancer signal" creating an overhang, leading to a downgrade from Buy to Hold.
- Despite the setback, Abivax's drug is considered a potential best-in-class treatment for ulcerative colitis and Crohn's disease.
- The company is considered a takeover target, with CEO Marc de Garidel confident in securing better terms for partnerships after future data readouts.
- Abivax plans to submit obefazimod for FDA approval in the fourth quarter, with a potential launch in 2027.
- Potential buyers are likely to wait for the full data set, expected in October, before making a move.