Abivax Stock Soars on $17.5 Billion Eli Lilly Takeover Report
Shares in the French biotech surged after reports surfaced that the pharmaceutical giant is preparing a blockbuster bid for its promising ulcerative colitis drug.
Shares of Abivax SA (ABVX) skyrocketed in recent trading following a report that pharmaceutical behemoth Eli Lilly & Co. is preparing a takeover offer worth approximately $17.5 billion for the French biotechnology firm.
The potential bid, which remains unconfirmed by either company, has sent a jolt through the market, underscoring the intense appetite among major drugmakers for promising, late-stage assets in the inflammatory disease space. Abivax’s American depositary receipts, which trade on the Nasdaq, surged on the news, reflecting investor optimism about a potential acquisition at a significant premium.
At the heart of the rumored deal is Abivax's lead drug candidate, obefazimod, a novel oral treatment for moderately to severely active ulcerative colitis (UC). The company has completed a successful Phase 3 trial program for the drug, positioning it as a potentially valuable new option in a market affecting millions of patients worldwide. According to a Wall Street Journal report which first broke the news, Eli Lilly's interest is squarely focused on this lead asset.
The reported $17.5 billion offer would represent a substantial premium of roughly 95% over Abivax’s recent market capitalization of approximately $8.97 billion. Such a valuation highlights the perceived blockbuster potential of obefazimod and the strategic value for a company like Eli Lilly to acquire a de-risked, Phase 3 asset rather than develop one internally.
For Eli Lilly, an acquisition of Abivax would be a strategic move to deepen its portfolio in immunology and inflammation, a highly competitive and lucrative therapeutic area. While best known for its blockbuster diabetes and obesity drugs, Lilly has been actively working to build its presence in other disease categories. Acquiring Abivax would give it a near-term commercial opportunity in the gastroenterology market.
The ulcerative colitis market is a key battleground for pharmaceutical companies. An acquisition of Abivax and its flagship drug candidate, obefazimod, would allow Eli Lilly to compete more directly with other major players in the immunology space. Reports from investing and analysis sites have noted that a deal would significantly bolster Lilly's pipeline in this area.
In keeping with standard practice on market rumors, both Abivax and Eli Lilly have so far declined to comment on the speculation. The lack of an official statement leaves investors and the market to weigh the credibility of the report, though the sharp move in Abivax's share price indicates a high degree of investor confidence in a potential transaction.
Abivax, which is headquartered in Paris, describes itself as a clinical-stage company focused on developing therapeutics that harness the body’s natural regulatory mechanisms to treat chronic inflammatory diseases. The company's future was seen as being closely tied to the clinical and commercial success of obefazimod. A takeover by a major pharmaceutical player like Eli Lilly would provide the extensive resources needed for a global product launch and commercialization, validating the small biotech's research and development strategy.
Investors will now be closely watching for any official filings or statements that could confirm or deny the acquisition talks. Should an official offer materialize, it would mark one of the most significant biotech M&A deals of the year and reinforce the trend of large-cap pharma companies acquiring innovative clinical-stage biotechs to fuel future growth.