Abivax NASDAQ:ABVX shares jumped as much as 36% after its latest obefazimod trial update helped calm investor concerns that cancer could be a possible side effect of the biotech's key experimental ulcerative colitis drug. The company said cancer cases reported in the study were within a background reference range based on published studies. It also noted that tumors appeared in patients who were already at risk of developing cancer, with some having a prior history of skin cancer.
Piper Sandler analysts led by Allison Bratzel said the update should help put to rest concerns over whether obefazimod showed signs of causing tumors. Bratzel also pointed to the drug's remarkable effectiveness, adding another supportive element to the investment story. The move marked Abivax's biggest intraday gain since last July, following a 31% year-to-date decline before the rally as investors weighed potential side-effect concerns.
CEO Marc De Garidel said Abivax is focused on building the infrastructure to launch obefazimod in the US, while keeping its financing options open. The company plans to seek US approval in the fourth quarter, European approval in the second quarter of next year, and filings in Japan and China during 2027. CFO Didier Blondel said Abivax is reviewing equity, debt, and royalty financing options, while De Garidel said the company has delayed its search for a European partner due to possible pricing implications from President Donald Trump's push to link US drug prices to European prices.