Abivax jumps as fully exercised option lifts share-sale haul to $920 million

Investing.com -- Shares of Abivax rose after the French biotechnology company said underwriters had fully exercised their option to purchase additional American depositary shares (ADS), pushing gross proceeds from its recent offering to $920 million, up from the $800 million raised a day earlier.

The company said a total of 7.36 million ADSs were issued in the offering, generating gross proceeds of $920 million, or €807 million, and net proceeds of $874.1 million.

Abivax’s Nasdaq-listed shares jumped 6.7% in premarket trading by 03:51 ET (07:51 GMT). Paris-listed shares rose 5.9%.

The additional ADSs are expected to be delivered when the offering closes on July 6. Abivax said it plans to use the proceeds toward the potential commercialization of its lead drug candidate, obefazimod, in the U.S., as well as to fund ongoing clinical research.

The expanded raise follows Wednesday’s initial share sale, which valued the company at nearly $11 billion after strong investor demand.

A company sale still remains possible, but the financing gives Abivax greater strategic flexibility and removes the time pressure that often accompanies takeover talks in the biotech sector, Reuters reported, citing people familiar with the matter.

Abivax has long been viewed by investors and industry executives as a potential acquisition target for larger drugmakers looking to expand their presence in inflammation and immunology treatments. Its lead candidate, obefazimod, is being developed for chronic inflammatory conditions including ulcerative colitis and Crohn’s disease and is currently in late-stage Phase 3 trials.

The company said the newly raised capital is sufficient to fund its research and operations through the second quarter of 2029.

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