Obefazimod, an experimental drug, lifted shares of French biotechnology firm Abivax by nearly 40% on Tuesday after the company released additional late-stage trial data, helping ease investor concerns over safety issues that had sparked a steep sell-off earlier this month.
The stock was trading at around 116.5 euros, gaining 39.9% after rebounding from a 44% slump on June 2, when earlier trial results revealed cancer cases among patients taking the highest dose of the ulcerative colitis (UC) drug.
The Phase 3 trial update proved that the reported malignancies were broadly in line with cancer rates typically seen among patients suffering from ulcerative colitis.
Abivax also said more than 37% of patients who initially failed to respond to treatment achieved clinical remission after receiving the 50 mg dose for around 10 months.
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The company said the findings suggest that some patients may benefit from longer treatment periods despite not responding immediately.
The maintenance study assessed remission rates in UC patients over a 44-week period, with the latest announcement being a supplementary update to the Phase 3 trial.
Analysts at Jefferies described the data as supportive but noted that concerns around cancer risk, funding requirements and limited upcoming catalysts could continue to influence investor sentiment.
Abivax, based in Paris, has emerged as a potential acquisition target, with speculation that major pharmaceutical companies may be interested in the biotech firm.
The company's market value has climbed to nearly 8 billion euros after shares gained almost 1,700% in 2025.
CEO Marc de Garidel said the latest safety data strengthens confidence in obefazimod's long-term profile.
Abivax plans to submit a new drug application to the US FDA in the fourth quarter of 2026, with a potential launch expected in 2027.
The drug is also being tested for Crohn's disease, expanding its potential market in inflammatory bowel disease treatment.
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