Abivax raises $800M in upsized ADS offering as biotech demand surges

Key Takeaways:

Abivax priced 6.4M ADSs at $125 each for $800M in gross proceeds
The offering was upsized from $600M and oversubscribed, reflecting strong demand
Net proceeds extend cash runway into Q2 2029 for obefazimod development

Abivax SA raised $800 million in an upsized and oversubscribed public offering of American Depositary Shares, the French biotech's second major capital raise in 12 months as it advances its lead ulcerative colitis drug toward potential commercialization.

The company priced 6.4 million ADSs at $125 each, a 2.39% premium to the three-day volume-weighted average price of its ordinary shares on Euronext Paris, Abivax said in a statement Wednesday. The deal was increased from an initially planned $600 million after strong investor demand, with underwriters receiving an option to purchase an additional 960,000 ADSs that could bring total proceeds to $920 million.

"The strong demand for this offering reflects institutional confidence in obefazimod's potential in the inflammatory bowel disease market," Patrick Malloy, head of investor relations at Abivax, said.

Abivax plans to use the net proceeds for potential U.S. commercialization of obefazimod, its lead drug candidate targeting moderately to severely active ulcerative colitis, as well as clinical research and development in ulcerative colitis and Crohn's disease. The company had €491.6 million in cash and short-term investments as of March 31, providing runway into the fourth quarter of 2027 based on current operating assumptions. With the new capital, that runway extends into the second quarter of 2029.

The offering represents the second major capital infusion for Abivax in less than a year. In July 2025, the company raised $747.5 million in gross proceeds from an ADS offering priced at $64 per share, a 21% premium at the time. Shares fell 4.69% on the day of that announcement, according to StockTitan data, reflecting typical dilution concerns that accompany biotech equity raises.

Leerink Partners, Morgan Stanley, Piper Sandler and Guggenheim Securities acted as joint bookrunning managers, with LifeSci Capital as passive bookrunner and Van Lanschot Kempen as lead manager. Board members and executive officers are subject to a 60-day lock-up. The offering is expected to close July 6.

The 6.4 million ADSs represent dilution of approximately 8% of the company's share capital on a non-diluted basis, or 9.2% if the underwriters' option is exercised in full. A shareholder holding 1% before the offering would hold 0.93% after completion.

Obefazimod, a small molecule that modulates immune response through a novel mechanism targeting RNA splicing, is currently in Phase 3 trials for ulcerative colitis. The inflammatory bowel disease market is competitive, with established players including AbbVie Inc.'s Humira and Skyrizi, Johnson & Johnson's Stelara, and Eli Lilly & Co.'s Omvoh, which generated combined sales exceeding $30 billion annually. Abivax's ability to secure $1.5 billion in equity financing across two offerings within a year signals strong institutional appetite for novel oral therapies in the space, though the company faces the challenge of demonstrating differentiation against existing biologics and small molecules.

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