Dec 10 (Reuters) – French biotech company Abivax’s shares rose by over 20% on Wednesday on market rumours that U.S. pharma giant Eli Lilly could make an offer for the business. The “share price movement is driven by speculation around a possible takeover,” said Damien Choplain, analyst at Stifel. An Eli Lilly spokesperson said the […]
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French biotech Abivax’s shares climb on Eli Lilly bid rumors
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Dec 10 (Reuters) – French biotech company Abivax’s shares rose by over 20% on Wednesday on market rumours that U.S. pharma giant Eli Lilly could make an offer for the business.
The “share price movement is driven by speculation around a possible takeover,” said Damien Choplain, analyst at Stifel.
An Eli Lilly spokesperson said the company does not comment on “business development activity”. Abivax said it would not comment on market rumours.
The French company announced in July positive results from a Phase 3 trial of its key drug obefazimod for the treatment of ulcerative colitis, sending its Paris-listed shares soaring over 500% in a day, and filed for an offering of up to $400 millions in American Depositary Shares.
By around 1320 GMT on Wednesday, the stock was up 11% and was on track for a 17-fold increase in value since the beginning of the year, having reached a market valuation of over 8 billion euros ($9.3 billion), up from just 500 million euros in January.
($1 = 0.8595 euros)
(Reporting by Alessandro Parodi, Gianluca Lo Nostro and Danilo Masoni, editing by Matt Scuffham)