Abivax stock price target raised to $74 from $20 at Leerink on strong UC data

Published 23/07/2025, 13:44
Abivax stock price target raised to $74 from $20 at Leerink on strong UC data

Investing.com - Leerink Partners raised its price target on Abivax (NASDAQ:ABVX) to $74.00 from $20.00 on Wednesday, maintaining an Outperform rating following positive Phase 3 clinical trial results for the company’s ulcerative colitis treatment. The stock, which has surged over 64% in the past six months, currently trades near its 52-week high of $13.17.

The significant price target increase follows Abivax’s announcement of positive topline induction data from its ABTECT program for obefazimod, an oral miR-124 inducer. The drug exceeded expectations on the FDA primary endpoint of clinical remission, achieving statistically significant benefits for the 50mg dose across all primary and key secondary endpoints in both studies. InvestingPro data shows the company has received strong analyst support, with a consensus recommendation of 1.62 (Strong Buy) and price targets ranging from $12 to $95.

Leerink noted that obefazimod demonstrated a well-tolerated safety profile with manageable rates of headache (approximately 16-26%) that were transient with a median duration of 2-3 days and did not significantly drive discontinuations.

The research firm now projects approximately $4 billion in peak revenue potential for obefazimod in inflammatory bowel disease treatments, up from its previous estimate of $2.6 billion, citing the drug’s compelling late-stage clinical profile for a novel oral agent in ulcerative colitis. With a current market capitalization of $663 million and last twelve months revenue of $11.46 million, the company faces significant cash burn, with negative free cash flow of $166 million. Get deeper insights into Abivax’s financial health and 12 additional ProTips with InvestingPro.

Abivax plans to release additional data at a future medical congress, with 44-week maintenance data expected in the second quarter of 2026 and Phase 2b Crohn’s disease data in the second half of 2026. The company’s next earnings report is scheduled for August 11, 2025, which could provide additional insights into its development progress and financial position.

In other recent news, Abivax announced that its lead drug candidate, obefazimod, achieved primary endpoints in two Phase 3 clinical trials for ulcerative colitis. The trials, known as ABTECT-1 and ABTECT-2, demonstrated statistically significant clinical remission at Week 8 with a 50 mg once-daily dose. Following these positive results, Guggenheim raised its price target for Abivax to $101, maintaining a Buy rating. Similarly, JMP Securities increased its price target to $95 while keeping a Market Outperform rating. The trials enrolled 1,275 patients across 36 countries, showing a pooled 16.4% placebo-adjusted clinical remission rate. Individually, the remission rates were 19.3% for ABTECT-1 and 13.4% for ABTECT-2, both with high statistical significance. Citizens JMP also reiterated a Market Outperform rating with a $33 price target, citing confidence bolstered by a key opinion leader call. These developments highlight Abivax’s progress in advancing its ulcerative colitis treatment.

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