Abivax SA, a clinical-stage biotechnology company developing immunomodulatory therapeutics for chronic inflammatory diseases, has successfully raised $747.5 million through a public offering of American Depositary Shares (ADSs). The company announced that underwriters exercised their full option to purchase an additional 1,523,400 ADSs, bringing the total offering to 11,679,400 ADSs at $64.00 per share.
The French-American biotechnology company, which trades on both Euronext Paris and Nasdaq Global Market under the ticker "ABVX," priced the offering at a 21% premium to the volume-weighted average price of its ordinary shares over the three trading sessions preceding the pricing date (July 21-23, 2025). After deducting underwriting commissions and estimated offering expenses, the company expects net proceeds of approximately $700.3 million.
Strategic Funding for Lead Program
Abivax plans to allocate the proceeds strategically across its development pipeline, with the largest portion supporting its lead drug candidate obefazimod (ABX464). The company intends to use approximately 23% of net proceeds to fund obefazimod's development for ulcerative colitis, while 5% will support its development for Crohn's disease. The remaining 72% will be directed toward working capital and general corporate purposes, including commercialization preparation, additional research and development, and financing expenses.
Obefazimod is currently in Phase 3 clinical trials for the treatment of moderately to severely active ulcerative colitis. The drug candidate represents Abivax's approach to harnessing the body's natural regulatory mechanisms to stabilize immune responses in patients with chronic inflammatory diseases.
Financial Position and Runway Extension
The timing of the offering reflects Abivax's immediate funding needs. As of June 30, 2025, the company reported cash and cash equivalents of $71.4 million, which would finance operating cash flow requirements only into the fourth quarter of 2025. The substantial capital raise provides significant runway extension for the company's clinical development programs.
The offering was conducted under an automatic shelf registration statement on Form F-3 filed with the Securities and Exchange Commission on July 23, 2025, which became effective upon filing. Leerink Partners, Piper Sandler & Co., and Guggenheim Securities served as underwriters for the transaction.
Corporate Governance Measures
In connection with the offering, Abivax's board members and executive officers agreed to a 60-day contractual lock-up period following the final prospectus supplement date, subject to customary exceptions. The company also committed to the same lock-up restrictions.
Additionally, the company disclosed that entities affiliated with Heights Capital Management provided notice for the conversion of 150 convertible notes, representing approximately €9.4 million in outstanding principal, into 394,447 new ordinary shares at a conversion price of €23.7674 per share. This conversion is expected to occur around July 29, 2025.
Market Context and Risk Factors
The company highlighted several risk factors associated with the offering, including management's broad discretion over proceeds allocation, immediate dilution for shareholders, potential market impact from future share sales by existing shareholders, and the ongoing need for additional capital to finance clinical programs and potential commercialization efforts.
Abivax emphasized that the expected use of proceeds represents current intentions based on existing plans and business conditions, with actual expenditures subject to variation depending on clinical development progress, trial results, potential collaborations, and unforeseen cash needs. Management retains broad discretion over the final allocation of net proceeds.
