Abivax Shares Rise After Goldman Sachs Initiates 'Buy' Rating on Drug Potential

Abivax (ABVX.PA) shares gained on Tuesday after Goldman Sachs initiated coverage on the French biotechnology firm, citing the significant commercial potential of its lead drug candidate. The investment bank assigned a "Buy" rating to the company's American Depositary Shares (ADS), setting a price target of $155.

Goldman Highlights 'Multi-Blockbuster' Potential

In its initiation note, Goldman Sachs described Abivax's lead oral drug, obefazimod, as a "multi-blockbuster" opportunity for treating inflammatory bowel disease (IBD). Analysts at the bank stated the drug has been significantly de-risked due to strong data from late-stage clinical trials in ulcerative colitis, a condition with considerable unmet medical need.

Goldman projects peak sales for obefazimod could reach €4 billion (approximately $4.65 billion) for the ulcerative colitis indication alone. The firm also identified further upside potential in Crohn's disease, another intestinal inflammation disorder, forecasting an additional €3.5 billion in peak sales. Data from mid-stage trials for the Crohn's indication is anticipated in mid-2027.

Growing Institutional Confidence

The positive report from Goldman Sachs reinforces an already bullish analyst consensus. Prior to this initiation, Abivax had reportedly secured 11 "Buy" ratings from other analysts, with no "Hold" or "Sell" recommendations.

Ad

This sentiment is also reflected in recent institutional investment activity. Earlier in September, Bank of America disclosed to French securities regulators that its ownership stake in Abivax had crossed the 5% threshold, indicating substantial and ongoing buying from a major financial institution.

Market Context and Outlook

The stock's advance was also supported by a favorable market environment and investor positioning ahead of a potential catalyst. The company's next earnings report is scheduled for September 21, and investors may be anticipating positive news following a stronger-than-expected previous quarter.

On Tuesday, Abivax shares rose 3.0% to €104.2 on the Euronext Paris exchange. The move was aided by a broader risk-on sentiment in global markets that benefited the biotech sector.