Abivax, a French clinical-stage biotech company valued at nearly 11 billion euros ($12.2 billion), has raised $920 million in its latest funding round, enabling it to pursue a U.S. launch of its bowel disease drug, obefazimod, without the need for Big Pharma backing. CEO Marc de Garidel stated that the cash infusion will allow Abivax to finance operations through 2029, including the commercialization of obefazimod in the U.S. and further clinical research and development for the same medicine [1].
The funding round follows a period of intense takeover speculation, with Abivax seen as a prime acquisition target after reporting strong efficacy for obefazimod in July 2025 over an 8-week period. The subsequent maintenance trial assessed the drug's effect over 44 weeks. However, investor confidence was shaken when a late-stage trial reported cancer cases in the study cohort, causing a sharp decline in Abivax shares. A subsequent dataset from the same trial indicated that malignancy rates were in line with expectations for the patient demographic, leading to a recovery in the share price [1].
De Garidel emphasized the drug's "unmatched efficacy for the drug in a hard-to-treat population" and reiterated the company's stance on its safety, noting that ulcerative colitis patients are inherently more susceptible to certain types of cancer due to immune system depletion. He also highlighted that the company is preparing for a pre-NDA meeting with the U.S. Food and Drug Administration at the end of July to discuss the New Drug Application for obefazimod [1].
Abivax's Paris-listed shares have soared more than 1,600% over the past 12 months, reflecting both the company's clinical progress and the volatility surrounding safety concerns and takeover rumors. The significant rise in share price may complicate negotiations with potential buyers, but de Garidel expressed confidence in the company's ability to secure favorable terms if a deal were to be considered [1].
CONCLUSION
Abivax's $920 million cash raise positions the company to independently launch its lead drug, obefazimod, in the U.S. and sustain operations through 2029. Despite recent volatility due to safety concerns, investor sentiment has rebounded as new data reassured the market. The company's strong share performance and strategic funding reduce its reliance on external partners, even as takeover speculation continues.