Jefferies has moved Abivax to a Buy rating from Hold and raised its price objective to $158 from $108 after the company published updated Phase 3 results for its lead investigational therapy, obefazimod. The brokerage said the new ABTECT Part 2 information alleviated concerns tied to earlier reports of malignancy cases and reinforced confidence in the drug candidate's clinical profile.
The upgrade reverses a more cautious posture Jefferies adopted earlier this month. In its updated assessment, the firm said the ABTECT Part 2 disclosure removed a significant overhang on the shares and that management's explanation of the safety findings, together with ongoing efficacy improvements, strengthened the overall investment case.
On safety, Jefferies concluded that the details revealed in the latest update indicate the reported non-melanoma malignancy cases are unlikely to be related to treatment with obefazimod. The brokerage added that any residual risk of non-melanoma skin cancer would probably be manageable through a warning label and monitoring recommendations rather than representing a major regulatory barrier.
Jefferies also pointed to obefazimod's continued demonstration of a robust efficacy profile in ulcerative colitis, noting particular strength in maintenance therapy. The firm cited endoscopic remission measures as supportive evidence for the drug's anti-inflammatory effects and said these results raise confidence ahead of Abivax's expected Phase 2 Crohn's disease data, anticipated in mid-2027.
Despite the upgrade and the improved safety read, Jefferies emphasized that risks remain. The brokerage highlighted potential challenges related to financing, the commercial demands of launching an inflammatory bowel disease therapy, and the execution of regulatory steps. While Jefferies views a strategic acquisition as the preferred route to meet the commercial demands of such a launch, it also believes Abivax has pathways to address its cash runway and that further regulatory progress and broader investor recognition of the clinical dataset could drive additional upside.
Analyst perspective
Jefferies framed the latest ABTECT Part 2 update as removing a key impediment to investor sentiment, while noting remaining operational and regulatory hurdles. The firm maintained a constructive stance on the stock given the balance of improved safety interpretation and the supporting efficacy signals in ulcerative colitis.