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On Tuesday, BTIG analysts maintained a Buy rating and a $43.00 price target for Abivax (NASDAQ: ABVX) shares, aligning with the broader analyst consensus that remains bullish on the stock. According to InvestingPro data, analyst price targets range from $20 to $50, suggesting significant upside potential from current levels. The firm’s positive stance is based on the anticipated completion of enrollment for the Phase 3 ABTECT trials in the second quarter of 2025, with results from the 8-week induction period expected in the third quarter of 2025.
Abivax is focused on the development of its lead drug candidate, obefazimod, which is being studied for the treatment of ulcerative colitis (UC). While the company’s current market capitalization stands at $469 million, InvestingPro analysis suggests the stock is currently undervalued. A recent virtual event featuring Dr. David Rubin underscored the significant unmet need for safe and effective therapies for patients with UC who are refractory to current treatments. Obefazimod, with its novel mechanism of action and clean safety profile, is believed to be well-suited to meet this need.
During the event, Abivax management noted that the baseline characteristics of participants in the ongoing ABTECT trial remain consistent with those observed in Phase 2, with approximately 48% having prior experience with biologic therapies. BTIG analysts expect obefazimod’s efficacy in refractory patients to be a key differentiator, potentially positioning the drug favorably even when compared to PTGX’s icotrokinra, another oral therapy in development for UC.
The analysts predict that both obefazimod and icotrokinra can become long-term blockbusters in the inflammatory bowel disease (IBD) market, as they do not foresee a zero-sum scenario. Instead, they believe there is room for multiple active and safe oral therapies to coexist and meet the diverse needs of patients.
Abivax concluded the fiscal year 2024 with €144.2 million in cash reserves. While the company has indicated that these funds are expected to be sufficient to support its operations into the fourth quarter of 2025, InvestingPro analysis flags that the company is quickly burning through cash, with negative free cash flow of $161 million in the last twelve months. InvestingPro subscribers have access to 8 additional key insights about Abivax’s financial health and growth prospects.
In other recent news, Abivax has been the subject of notable analyst attention, with developments surrounding its drug candidate obefazimod. Morgan Stanley (NYSE:MS) initiated coverage of Abivax, assigning an Equalweight stock rating with a price target of $12.00. Their focus is on the promising Phase 2 results of obefazimod for ulcerative colitis, emphasizing the importance of the upcoming Phase 3 trials set for the third quarter of 2025. Meanwhile, JMP Securities maintained its Market Outperform rating and a $33.00 price target on Abivax shares. This decision was influenced by insights from Dr. David T. Rubin, a key opinion leader in ulcerative colitis, who shared positive perspectives on obefazimod during a recent event. Dr. Rubin’s involvement in the Phase 3 program adds credibility to these insights. JMP’s analysis is based on a risk-adjusted, discounted cash flow approach, reflecting confidence in the drug’s potential. Both firms highlight the significance of the Phase 3 trials as a pivotal moment for Abivax’s future direction.
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