Shares of a French biotechnology company Abivax surged on Tuesday after it released new data on its lead drug for intestinal diseases, recouping big losses from earlier in the month when the same trial had investors questioning the drug's future.
Abivax shares were last trading up 39.9% at 116.5 euros ($133). The move comes after it plunged around 44% on June 2, following a data set that showed there were cases of cancer among patients taking the highest dose of its experimental ulcerative colitis (UC) drug obefazimod.
Additional data from the late-stage clinical trial, released late Monday, showed that malignancies were in line with levels typically seen in UC patients. The company also said that more than 37% of patients who did not initially respond to treatment achieved clinical remission after treatment with a 50 mg dose, after approximately 10 months.
“These findings suggest that a significant proportion of patients who do not respond initially may still derive substantial benefits from longer exposure to treatment,” Abivax said..
The trial was a maintenance study that evaluated remission rates among patients with ulcerative colitis over 44 weeks. Monday's update was the second complementary part of the Phase 3 trial.
Analysts at Jefferies rated the upgrade “supportive” but said they questioned whether this would be enough for investors given “cancer risk may be difficult to price in, catalyst path tight, cash needs, catalyst path ex-M&A.”
Abivax has positioned itself as a prime acquisition target, with unverified rumors that several large pharmaceutical companies have their eyes on acquiring the Paris-based clinical-stage biotech.
While it is not uncommon for Abivax or other clinical-stage biotech companies to see wild swings in their shares following data on their main asset, and often their only asset, Abivax has grown to become a major player with a market capitalization of around €8 billion after its shares gained almost 1,700% in 2025.
The shares had fallen 14% so far this year at the start of trading on Tuesday, but were on track to recover from the decline earlier this month when they were trading just above 111 euros per share.
Abivax stock over the past year.
Jefferies analysts said specialist investors and doctors would likely move past the malignancy issue, but general investors might still be hesitant to own the stock.
Earlier this month, Abivax reported that there were seven cases of different cancers in the study cohort, all of which were considered unrelated or unlikely to be related to the treatment.
“The expanded cumulative safety data further strengthens our confidence in the long-term safety profile of obefazimod and reinforces the favorable benefit-risk profile for our program as we prepare for our plan.” [new drug application] presentation later this year,” CEO Marc de Garidel said in a statement Monday.
Abivax said it remains on track to submit its NDA to the U.S. Food and Drug Administration for obefazimod in the fourth quarter of 2026. It previously said a 2027 launch is likely, but the company is widely considered to be acquired before then.
Analysts have described the experimental drug as the best potential treatment for ulcerative colitis. Abivax is also testing the drug for Crohn's disease, opening it to a multibillion-dollar market for inflammatory bowel disease (IBD).
A trial evaluating the drug in patients with Crohn's disease is expected to be conducted in mid-2027.
