Abivax Secures $650M in Public Offering for ADSs Investment
Abivax Announces Pricing for $650 Million Public Offering
PARIS, France – Abivax SA (NASDAQ: ABVX), a promising clinical-stage biotechnology company, has officially announced its pricing for a public offering of American Depositary Shares (ADSs) totaling approximately $650 million. This strategic move aims to consolidate funds necessary for advancing its innovative therapeutics designed to enhance the body's natural immune responses against chronic inflammatory diseases.
Details of the Public Offering
The company aims to offer 10,156,000 ADSs at a price of $64.00 per ADS, equivalent to €54.58 based on the latest European Central Bank exchange rates. This offering price reflects a premium of 21% over the recent trading average of the company's ordinary shares on the Euronext Paris, mirroring the dynamic performance of Abivax's stock in recent sessions.
Leading firms, including Leerink Partners, Piper Sandler & Co., and Guggenheim Securities, are serving as joint bookrunning managers. LifeSci Capital has taken the role of the lead manager, with additional support from BTIG and Van Lanschot Kempen. The underwriting agreement related to this offering was executed recently, marking the crucial step in finalizing the capital raise.
Strategic Use of Proceeds
The gross proceeds of the offering are set at $650 million, which could potentially rise to approximately $747.5 million if the underwriters opt to exercise their purchase option. Abivax plans to allocate the net proceeds toward critical areas such as:
- Between $140 million and $185 million dedicated to clinical development of their flagship drug candidate, obefazimod, aimed at treating Ulcerative Colitis.
- Approximately $30 million up to $65 million for advancing obefazimod’s development for Crohn’s Disease.
- Remaining funds earmarked for general corporate purposes and working capital, including research and commercialization preparations.
Projected Financial Stability
With projected cash reserves of $71.4 million as of mid-2025, Abivax anticipates that the influx from this public offering will support its operational ambitions into late 2027, significantly after potential regulatory submissions.
The strategic execution of this offering is anticipated to fortify Abivax's cash runway and provide the financial flexibility essential for navigating the complexities of drug development.
The Importance of Clinical Development
Abivax remains committed to its mission of creating significant advancements in the treatment and management of chronic inflammatory diseases through innovative therapeutic solutions. The company’s lead candidate, obefazimod, is increasingly critical in ongoing Phase 3 clinical trials, giving hope to patients battling these challenging conditions.
Abivax’s strategic foresight in orchestrating this substantial public offering underscores its dedication to delivering effective treatment options while also striving for consistent growth and market relevance within the biotech sphere.
Lock-up Period and Expected Closing
The board members and executives of the company will observe a lock-up period of 60 days post-offering commencement to maintain market stability. The offering is projected to close on a specified date, contingent on standard closing conditions.
Frequently Asked Questions
What is the total amount raised in the public offering?
The total gross proceeds from the public offering are approximately $650 million.
Who are the underwriters for the offering?
The underwriters include Leerink Partners, Piper Sandler & Co., and Guggenheim Securities, among others.
What will the funds be used for?
Funds will primarily be allocated for clinical development of obefazimod and supporting general corporate needs.
How many ADSs will be offered?
Abivax plans to offer 10,156,000 ADSs in this public offering.
What is Abivax's focus area?
Abivax focuses on therapies targeting chronic inflammatory diseases by modulating the immune response.
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