Abivax share price jumps: Possible billion-dollar takeover by Eli Lilly

• Abivax shares rise significantly in Paris
• Eli Lilly is probably considering a billion-dollar takeover
• Analysts see further upside potential in the event of a takeover

Abivax share price jumps

At the start of the week, the shares of the French biotech company Abivax in Paris temporarily rose by 10.71 percent to 109.60 euros. The shares of the US pharmaceutical giant Eli Lilly were temporarily trading 0.05 percent lower at 1,063.02 US dollars in NYSE trading on Monday.

Possible billion dollar takeover by Eli Lilly

French daily La Lettre reports that Eli Lilly is still in the running to acquire Abivax, although the company has not yet made a formal offer to the board. Before positioning itself, the US group is “waiting for a signal from the French Ministry of Finance to find out whether this takeover is subject to the control procedures for foreign investments in France.” According to the daily, Eli Lilly is willing to pay 15 billion euros to acquire Abivax, which would be significantly higher than the company’s current market capitalization.

Abivax focuses on key drug obefazimod

Abivax CEO Marc de Garidel told Bloomberg News that major pharmaceutical companies could no longer ignore obefazimod – the company’s key drug – according to Reuters. In his opinion, the experimental drug developed to treat the inflammatory bowel disease ulcerative colitis could become “one of the most widely used products of the next decade.” “We are focused on developing this drug and bringing it to market,” de Garidel told BiotechTV. “That’s all that matters. We can’t influence the rumors and speculation.”

Analysts view Abivax as an attractive M&A target

Kepler Cheuvreux said in a note to clients that “Abivax has become a highly attractive late-stage M&A target following the positive results of the Phase 3 study of obefazimod,” as reported by Reuters. This had already led to fireworks for the Abivax share price in July last year. Since then, the shares have continued to rise sharply.

The analysts estimate that there could be even further upside potential for the shares in the event of a takeover. In their opinion, the share could then be worth between 150 and 250 euros. This reflects “control premiums, synergies and strategic value of a late-stage oral IBD (inflammatory bowel disease) product.”

Abivax and Eli Lilly did not immediately respond to a request for comment, according to Reuters.

Editorial team finanzen.net

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