Jefferies Upgrades Abivax to Buy and Raises Price Target
Jefferies has upgraded Abivax (ticker ABVX) from a "Hold" rating to "Buy" following the release of updated Phase 3 data for the company’s lead drug candidate, obefazimod. The brokerage increased its price target for Abivax to $158 per share, up from the previous target of $108, reflecting the alleviation of earlier safety concerns.
The latest ABTECT Part 2 update indicated that the previously reported non‑melanoma malignancy cases are unlikely to be related to the treatment. Jefferies stated that any residual risk of non‑melanoma skin cancer could be managed through a warning label and monitoring recommendations, rather than constituting a major regulatory hurdle.
Efficacy data continue to be strong, with obefazimod showing robust results in ulcerative colitis, especially in the maintenance setting. Endoscopic remission outcomes support the drug’s anti‑inflammatory effect. The firm also highlighted that Phase 2 data for Crohn’s disease are anticipated in mid‑2027, which could further bolster the therapeutic profile.
While Jefferies acknowledges ongoing risks related to financing, commercialization, and regulatory execution, it views a strategic acquisition as the preferred pathway to meet the commercial demands of launching an inflammatory bowel disease therapy. Nevertheless, the broker believes Abivax has viable options to extend its cash runway and expects additional upside from continued regulatory progress and growing investor appreciation of the clinical data.