Abivax shares surge on obefazimod late-stage trial data

(Sharecast News) - Abivax shares surged on Tuesday after the French biotech released additional late-stage trial data that eased investor concerns over the safety of its lead ulcerative colitis treatment, obefazimod, while also highlighting further efficacy in difficult-to-treat patients.

The stock jumped more than 30% after the company said malignancies observed in its phase three maintenance study were consistent with expected background rates for ulcerative colitis patients, helping to allay fears triggered by earlier data this month that had prompted a sharp sell-off.

Abivax also reported that 37.2% of patients who failed to respond during the initial induction phase achieved clinical remission after extended treatment with 50mg obefazimod, while 34.5% reached endoscopic remission.

Among patients who relapsed during the maintenance study, increasing the dose from 25mg to 50mg restored clinical remission in 45.5% of cases.

Analysts broadly welcomed the update, with Stifel describing the safety findings as reassuring and maintaining a 'buy' rating with a �115 price target, while Oddo BHF said the new analyses provided a "meaningfully higher" level of reassurance over cancer risk than the initial readout and reiterated its �120 target.

Piper Sandler said the results should "put to rest" concerns that obefazimod could cause tumours, while Jefferies called the update supportive but cautioned that some generalist investors may remain wary of the cancer signal, alongside the company's future funding needs.

Abivax said it remained on track to submit a new drug application to the US Food and Drug Administration in the fourth quarter, with analysts continuing to view the experimental therapy as a potential best-in-class treatment for ulcerative colitis.

At 1208 CET (1108 BST), shares in Abivax were up 36.01% in Paris at �113.30.

Reporting by Josh White for Sharecast.com.