Shares of French biotech company Abivax soared Tuesday after it released fresh data on its lead drug for bowel disease, clawing back heavy losses from earlier in the month when the same trial had investors questioning the future of the drug.
Abivax stock jumped 25% shortly after market open. It came after it crashed around 44% on June 2, following a data set that showed there were cancer cases among patients taking the highest dose of its experimental medicine obefazimod.
The late-stage clinical trial data of the medicine, released late on Monday, showed that malignancies were in line with expected background rates.
The trial was a so-called maintenance study that tested remission rates among patients with ulcerative colitis over 44 weeks. The Monday update was the second part of the Phase 3 trial.
Jefferies analysts called the update “supportive,” but said they questioned whether this would be enough for investors given “cancer risk may be tough to discount, sparse catalyst path, cash needs, catalyst path ex-M&A.”
Abivax has been positioned as a prime takeover target, with unverified rumors that several Big Pharma companies have their eye set on acquiring the Paris-based clinical-stage biotech.
Abivax shares over the past year.
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