Biotech takeover target Abivax sinks over 30% after bowel disease drug trial update

Shares of French biotech Abivax tumbled as a lot 32% after it reported recent information on its lead asset, a drug for ulcerative colitis.

The drugs met its endpoints of demonstrating a clinically significant efficacy and a remission price of about 40% for each doses examined, but in addition confirmed that there have been most cancers instances amongst sufferers taking the upper dose.

“[The] most cancers sign complicates issues,” a Jefferies analyst mentioned. “Even when unrelated noise, we predict the overhang can be actual, particularly contemplating absence of different value-inflecting information occasions over the subsequent [year].”

Within the examine cohort, there was one reported case every of prostate most cancers, breast most cancers, and colonic dysplasia, which Abivax mentioned had been unrelated to remedy.

There have been additionally 4 instances of pores and skin most cancers on the upper 50 mg dose, of which two had been deemed not or unlikely associated to the drug, and the opposite two had a medical historical past of pores and skin most cancers, Abivax mentioned.

The Jefferies analysts mentioned that “an affordable rationalization” for the most cancers instances was believable, however “would not appear to be an simply dismissed overhang.”

The inventory gained practically 1,700% in 2025, however shares had fallen 7% coming into Tuesday buying and selling. It was final buying and selling down over 32%.

The trial outcomes, printed late Monday, had been from a upkeep examine by which Abivax assessed the impact of the drug, obefazimod, over 44 weeks. It comes after the outcomes of a late-stage trial for an ulcerative colitis drugs in mid-2025, beating even essentially the most optimistic expectations.

Analysts have described the experimental drug as a possible best-in-class remedy for ulcerative colitis. Abivax can also be testing the medication for Crohn’s disease, opening it as much as a multi-billion-dollar marketplace for Irritable Bowel Syndrome (IBS).

“The 44-week upkeep information exhibit obefazimod’s potential to ship significant efficacy and sturdy disease management in ulcerative colitis,” mentioned Abivax’s David Rubin, additionally director of the inflammatory bowel disease heart on the College of Chicago Drugs.

“The novel mechanism, sustained scientific remission, and favorable long-term security profile spotlight its potential to handle a major unmet want in UC.”

The corporate has been positioned as a first-rate takeover target, with unconfirmed rumors that massive pharma has its eyes on the clinical-stage biotech led by CEO Marc de Garidel.

De Garidel instructed CNBC in March that he was assured the upkeep examine would learn out positively, and signaled that the corporate was in no rush to safe a deal or a partnership, as phrases can be higher after it.

It has been extensively anticipated that Abivax can be acquired earlier than launching obefazimod, and de Garidel instructed CNBC that it was planning to boost cash after the June information readout.