Abivax says $920mn raise supports US launch plan for obefazimod

Abivax has raised $920 million in financing that its chief executive said gives the French biotech enough cash to prepare a U.S. launch of obefazimod, its ulcerative colitis drug candidate, without relying on a larger pharmaceutical buyer. CEO Marc de Garidel told CNBC on Friday that the company now expects to have funding through the end of 2029, a period that could cover U.S. commercial preparations and further clinical research.

The clinical-stage company, valued at nearly 11 billion euros, or $12.2 billion, completed the fundraising after underwriters fully exercised an option to buy additional American depositary shares, according to Abivax. Such options, commonly known as overallotment options, allow banks managing an offering to purchase extra securities from the issuer when investor demand supports a larger deal.

De Garidel said on CNBC’s “Squawk Box Europe” that the proceeds put Abivax in a position to build the infrastructure needed for a U.S. rollout. The company has identified obefazimod as both its lead medicine and its only asset, with the new capital earmarked for operations, potential commercialization in the U.S. and research and development tied to the same drug.

The financing comes after a volatile period for Abivax, whose shares came under pressure when a late-stage trial of obefazimod in ulcerative colitis reported cancer cases among participants, CNBC reported. Analysts subsequently questioned the drug’s commercial prospects, according to CNBC.

A second dataset from the same study later showed malignancy rates were consistent with the level expected for the patient population, CNBC reported, helping the shares recover. De Garidel told CNBC the company continues to view the medicine as safe and described its efficacy in a hard-to-treat group of patients as unmatched.

“When you have ulcerative colitis, unfortunately, your immune system is depleted, and you are more susceptible to a certain type of cancer,” de Garidel said on CNBC.

Abivax is due to meet the U.S. Food and Drug Administration at the end of July for a pre-New Drug Application meeting, de Garidel said. A pre-NDA meeting gives a company and the regulator an opportunity to discuss the planned application before formal submission, including the data package and regulatory questions around a proposed drug.

Takeover speculation remains in focus

Abivax has drawn attention from investors as a potential acquisition target following strong eight-week efficacy results for obefazimod reported in July 2025, CNBC reported. A later maintenance trial studied the drug’s effect over 44 weeks.

Asked by CNBC whether Abivax would consider a takeover offer at this stage, de Garidel said: “The best defense for us is actually the offense.”

The company’s Paris-listed shares have risen more than 1,600% over the past 12 months, according to CNBC, a move that could make price discussions more difficult for any potential acquirer. De Garidel told CNBC in March that he believed Abivax could secure a better deal after the maintenance data.

Analysts have estimated that a transaction could be valued at as much as $23 billion, CNBC reported. They have also said Abivax could fit strategically with a large pharmaceutical company that has an immunology and inflammation business.

This story draws on original reporting from CNBC.