Abivax (ABVX) Skyrockets 24% After Steep Fall

Abivax SA (NASDAQ:ABVX) is one of the 10 Stocks With Remarkable Resilience.

Abivax soared by 24.34 percent on Wednesday to close at $90.15 apiece, as investors resorted to bargain-hunting to take advantage of its low price following its steep drop in the previous trading day, dragged by concerns about its cancer therapy candidate.

Earlier in the week, Abivax SA (NASDAQ:ABVX) announced strong clinical trial results from the third phase study evaluating Obefazimod in patients with moderate to severe active ulcerative colitis.

For illustration purposes only. Photo by Pavel Danilyuk on Pexels

While the drug achieved its primary endpoint of demonstrating clinically meaningful efficacy and a placebo-adjusted remission rate of about 40 percent, the results were overshadowed by concerns about other cancer cases taking higher doses.

″[The] cancer signal complicates matters,” said investment firm Jefferies in its market note.

“Even if unrelated noise, we think the overhang will be real, especially considering the absence of other value-inflecting data events over the next [year].”

Following the results, Jefferies downgraded Abivax SA (NASDAQ:ABVX) to hold from buy, as well as its price target, by 43.75 percent to $90 from $160 previously.

Apart from Jefferies, Abivax SA (NASDAQ:ABVX) also earned a 22-percent lower price target from Wolfe Research, to $136 from $176 previously, but maintained its outperform rating for its stock.

Wolfe said that the coverage was based on various factors, including background rates higher than normal, an older patient population, and the lack of a data safety monitoring board and nonclinical genotoxicity signals.

However, the listed firm is set to provide a safety and efficacy update later this month, which Wolfe said may reinforce optimism anew among investors on expectations that the biopharmaceutical firm would devise a communication strategy to address concerns.

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