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PARIS - Abivax SA (Euronext Paris:FR0012333284 - ABVX), with a current market capitalization of $663 million, announced today the launch of an approximately $400 million underwritten public offering of American Depositary Shares (ADSs), each representing one ordinary share of the company.
The clinical-stage biotechnology company, which focuses on developing therapeutics for chronic inflammatory diseases, plans to grant underwriters a 30-day option to purchase additional ADSs of up to 15% of the total offering on the same terms and conditions.
Leerink Partners, Piper Sandler & Co. and Guggenheim Securities are acting as joint bookrunning managers for the offering, with LifeSci Capital as lead manager and BTIG and Van Lanschot Kempen as co-managers.
The company intends to use approximately 23% of the net proceeds to fund the development of obefazimod for ulcerative colitis and about 5% for its development for Crohn’s disease. The remaining 72% will go toward working capital and general corporate purposes, including commercialization preparation and research and development.
Trading of Abivax’s ordinary shares on Euronext is expected to be suspended on Thursday until the opening of trading of the company’s ADSs on the Nasdaq Global Market. InvestingPro data shows the stock has demonstrated significant volatility, with a beta of 1.53, and is currently trading near its 52-week high. Subscribers to InvestingPro have access to 12 additional proprietary tips and comprehensive financial metrics for making informed investment decisions.
As of June 30, Abivax reported cash and cash equivalents of $71.4 million, which it says would finance operations into the fourth quarter of 2025. According to InvestingPro data, the company’s EBITDA stands at -$188.7 million for the last twelve months, highlighting the importance of this capital raise. InvestingPro analysis indicates the company is quickly burning through cash, one of several key insights available to subscribers.
The company also received notice from entities affiliated with Heights Capital Management for the conversion of 150 convertible notes (representing approximately €9.4 million in principal) into 394,447 new ordinary shares at a conversion price of €23.7674 per share.
The offering is subject to market conditions, and the company noted there is no assurance as to whether or when the offering may be completed. The final amount, offering price, and number of ADSs sold will be determined following a book-building process.
This announcement is based on a press release statement from Abivax.
In other recent news, Abivax has reported positive results from its Phase 3 ABTECT program, evaluating obefazimod in ulcerative colitis patients. The company announced that the 50mg dose achieved a statistically significant clinical remission rate at Week 8, meeting the primary endpoints in both studies. Following these results, several financial firms have updated their outlooks on Abivax. Piper Sandler raised its price target to $70, while Morgan Stanley upgraded the stock to Overweight with a new price target of $71. Leerink Partners also increased its price target to $74, maintaining an Outperform rating. Additionally, Guggenheim raised its price target to $101, citing significant efficacy demonstrated in the trials. These upgrades and increased price targets reflect confidence in the potential of Abivax’s treatment for ulcerative colitis. The trials enrolled 1,275 patients across 36 countries, showcasing the broad scope of the study.
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