ABVX Soars Pre-Market On Reports Of $17.5 Billion Eli Lilly Takeover Interest

• Eli Lilly has not yet submitted a formal bid for Abivax.
• In an interview with Bloomberg, Abivax CEO Marc de Garidel stated that a Treasury review is necessary in France and typically takes up to three months.
• Garidel added that major pharma companies can no longer ignore Abivax’s experimental drug for inflammatory bowel disease, obefazimod.

Abivax SA’s (ABVX) American Depository Receipts (ADRs) soared more than 32% in Monday’s pre-market trade after reports stated that U.S. pharmaceutical giant Eli Lilly & Co. (LLY) is interested in acquiring the French biotechnology company.

According to a report by La Lettre on Monday, Eli Lilly is said to be ready to acquire Abivax for €15 billion ($17.5 billion), which is nearly twice the current market capitalization of the French biotech company.

Retail sentiment on Stocktwits about Abivax SA was in the ‘bullish’ territory, with the ticker among the top 10 trending symbols on the platform at the time of writing.

Eli Lilly shares were up nearly 1% in Monday’s pre-market trade.

Eli Lilly’s Interest In Abivax

The report added that Eli Lilly is awaiting guidance from France’s Finance Ministry to understand if an acquisition of Abivax would be subject to foreign investment controls.

Eli Lilly has not yet submitted a formal bid for Abivax. In an interview with Bloomberg, Abivax CEO Marc de Garidel stated that a Treasury review is necessary in France and typically takes up to three months.

Abivax’ Experimental Drug

Garidel added that major pharma companies can no longer ignore Abivax’s experimental drug for inflammatory bowel disease, obefazimod.

“If you are Big Pharma, you cannot ignore that this product may be one of the most-used products in the next decade,” he added in the interview.

In a separate interview with BiotechTV, Garidel stated that Abivax is focusing on developing the drug and bringing it to the market, while adding that he has no control over the rumors and speculation surrounding the company.

Price Target Hikes Pour In

Analysts at Morgan Stanley and BTIG hiked their price targets for Abivax, according to TheFly. Morgan Stanley hiked its price target for ABVX to $145 from $101, while maintaining its ‘Overweight’ rating on the stock.

Analysts at BTIG hiked their price target to $150 from $120, while keeping a ‘Buy’ rating on Abivax shares.

Both firms cited optimism around Abivax’s obefazimod, with Morgan Stanley analysts stating that experts are increasingly encouraged by both the magnitude of effect and tolerability profile demonstrated in the induction portion of the Phase 3 program.

ABVX ADR is down 17% year-to-date, but up 1,693% over the past 12 months. LLY stock is down 1% YTD, but up 35% over the past 12 months.

Also See: XOM Stock Falls Pre-Market After Trump Reportedly Signals Venezuela Exclusion – Retail Sentiment Sours

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on