Abivax $920 million cash haul lets it prepare for U.S. launch: CEO
AbivaxThe latest funding round allows the biotech to launch its bowel disease drug in the U.S. without support from Big Pharma, CEO Marc de Garidel told CNBC after months of intense takeover speculation.
“With the cash we’ve raised… we’re in a position to have cash by the end of 2029 and… we’re in a position to create the right infrastructure to launch in the United States,” de Garidel told CNBC’s “Squawk Box Europe” on Friday.
French clinical-stage biotechnology worth approximately 11 billion euros ($12.2 billion), Raised $920 million Last week after the underwriters fully exercised their option to purchase additional American depository shares.
The proceeds will allow the company to fund its operations through 2029, including the commercialization of its lead drug and its sole U.S. asset, obefazimod, and additional clinical R&D spending for the same drug.
“The best defense for us is actually offense,” De Garidel said on Friday in response to a question about whether Abivax would consider a takeover offer at this stage.
This follows a volatile month for the company, in which a late-stage trial for obefazimod for ulcerative colitis patients spooked investors due to reported cancer cases in the study group and led to shares crashing as analysts questioned its commercial viability.
The data set from the second part of the same trial showed that malignancies were consistent with normal rates to be expected for the patient demographic, leading the shares to recoup their losses.
Abivax’s share over the last 12 months.
De Garidel on Friday emphasized the drug’s “unique efficacy for medicine in a difficult-to-treat population” and reiterated the company’s stance that it is safe.
“When you have ulcerative colitis, unfortunately your immune system is depleted and you become more susceptible to a certain type of cancer,” he said.
He added that Abivax will meet with the U.S. Food and Drug Administration at the end of July to discuss its New Drug Application for obefazimod, called the pre-NDA meeting.
Takeover speculation
But Paris-listed shares have risen more than 1,600 percent in the past 12 months, potentially complicating price negotiations with would-be buyers.
De Garidel told CNBC in March that he was confident a better deal could be achieved following maintenance data.
Analysts have modeled a buyout price could be as high as $23 billion and said Abivax could be a strategic acquisition for any major pharmaceutical company with immunology and inflammation franchises.
