Abivax Stock Posts Best Day in 11 Months as Analyst Upgrades Follow Fresh Data Alleviating Safety Worries
Shares of Abivax (ABVX) logged their strongest session in nearly a year on Tuesday, fueled by a flurry of analyst price-target increases and new safety and efficacy data that appeared to quell lingering investor anxiety over a potential cancer link tied to its ulcerative colitis drug candidate, obefazimod.
ABVX closed nearly 39% higher, slipping just 0.15% in after-hours trading at the time of writing, after the company also disclosed a $600 million underwritten public offering of American Depositary Shares.
Late Monday, Abivax released updated results from Part 2 of its ongoing study. The data showed that malignancy rates — including non-melanoma skin cancers — remained consistent with background levels seen in the broader ulcerative colitis population. Four NMSC cases were reported, two per dose arm, mostly in patients with pre-existing risk factors. Two additional non-NMSC malignancies in the 50 mg group were judged by investigators to be unrelated to the drug.
Abivax said the findings reinforce obefazimod’s benefit-risk profile. More than a third of patients on the higher dose achieved clinical remission and mucosal healing by week 44. The company plans to submit a New Drug Application to the U.S. Food and Drug Administration in the fourth quarter.
Analysts responded with a mix of upgrades and price-target bumps. BTIG raised its target to $175 from $150, reiterating a Buy rating, and said the latest data provided “sufficiently clean” safety evidence. Jefferies upgraded Abivax from Hold to Buy and lifted its target to $158 from $108, calling the update “appropriate to address the key overhang” and noting that the efficacy profile continues to strengthen.
Wedbush analyst David Nierengarten raised his target to $110 from $90 but kept a Neutral rating. While the pooled safety data looked in line with background malignancy rates, Wedbush remains cautious about how the FDA might view residual cancer risk — including the potential for a Black Box warning.
Separately, Abivax launched a $600 million public offering. Proceeds are earmarked for U.S. commercialization costs of obefazimod, clinical development in ulcerative colitis and Crohn’s disease, and general corporate purposes.
On Stocktwits, retail sentiment remained bullish over the past 24 hours, while message volume climbed from normal to high. Some users interpreted the capital raise as a signal that the company is prepared to move forward independently, possibly turning down “lowball M&A offers.” Others voiced hopes for a near-term buyout.
Despite the day’s surge, ABVX stock is roughly flat year-to-date.
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Anan Ashraf has no position in any of the stocks mentioned. This content is for informational purposes only and not investment advice. See our editorial policy. Originally published on StockTwits.