French biotechnology company Abivax said underwriters fully exercised their option to acquire additional American depositary shares (ADS), raising total gross proceeds from its equity offering to $920 million, equivalent to €807 million. In all, 7.36 million ADSs were issued in the deal, producing net proceeds of $874.1 million.
The company reported that Nasdaq-listed shares climbed 6.7% in premarket trading as of 03:51 ET (07:51 GMT), while shares listed in Paris rose 5.9%.
The extra ADSs are scheduled to be delivered when the offering closes on July 6. Abivax said the funds will be applied toward the potential commercialization of its lead candidate, obefazimod, in the United States and will also support its ongoing clinical research programs.
This enlarged capital raise follows an initial share sale earlier in the week that, after strong investor demand, valued the company at nearly $11 billion. While a sale of the company remains a possibility, people familiar with the matter said the fresh financing provides Abivax with greater strategic flexibility and reduces the urgency that frequently accompanies takeover discussions in the biotech sector.
Abivax has long been regarded by investors and industry executives as an acquisition candidate for larger pharmaceutical companies seeking to strengthen portfolios in inflammation and immunology. Its leading drug candidate, obefazimod, is in late-stage Phase 3 trials for chronic inflammatory conditions, including ulcerative colitis and Crohn's disease.
The company said the newly raised capital is sufficient to fund its research and operations through the second quarter of 2029.
Context and market reaction
The exercise of the underwriters' option expanded the size of the transaction from an initial $800 million tally to $920 million in gross proceeds. The net proceeds figure of $874.1 million represents the amount available to Abivax after fees and other offering costs.
Investors responded positively to the announcement, bidding up Abivax shares on both U.S. and French markets in premarket and early trading sessions.
What Abivax says it will fund
- Potential commercialization of obefazimod in the U.S.
- Ongoing clinical research and development activities
Financial runway
The company indicated that the proceeds should support its operations and research efforts through the second quarter of 2029, providing a multiyear funding horizon for its development plans.