Overview
Guggenheim has highlighted Abivax (NASDAQ:ABVX) as its top biotechnology selection, citing the company’s upcoming Phase III ABTECT Maintenance Part Two data readout scheduled for the end of June. Management has outlined a comprehensive disclosure framework that will present topline safety data, combined Phase II/III exposure‑adjusted incidence rates, and maintenance‑efficacy results.
The principal safety question centers on whether the cancer incidence rate for obefazimod aligns with background rates of 0.7‑1.4 per 100 patient‑years for non‑melanoma skin cancer and 0.3‑0.7 per 100 patient‑years for non‑NMSC in a highly refractory ulcerative colitis population. Guggenheim views this transparent approach as encouraging, noting that some nervous investors have already trimmed positions.
The firm projects that clean and convincing safety data could propel the share price back into the $130‑150 range and anticipates incremental demand following a positive outcome. Accordingly, Guggenheim maintains a buy rating on Abivax and designates it as its top pick in the sector.
Earlier, Abivax released topline data from its Phase III ABTECT study, showing an approximately 40% placebo‑adjusted clinical remission rate for obefazimod, surpassing certain expectations. However, the data also revealed a cancer signal, particularly at the higher dose, which led Jefferies to downgrade the stock to Hold and Wedbush to upgrade it to Neutral.
This article was generated with the support of AI and reviewed by an editor.