Abivax Stock: $650M Capital Raise Extends Runway

Abivax has successfully completed its capital raise of $650 million (€554 million) through the issuance of 10.156 million American Depositary Shares priced at $64 each. The offering, which concluded on July 24, 2025, represents a 21% premium over the average trading price of the previous three days, signaling strong investor confidence despite the 16% dilution of existing capital. Trading of Abivax shares on Euronext Paris was temporarily suspended on July 24 at 9:00 AM CEST during the allocation process but resumed at 3:30 PM CEST. The capital raise follows dramatic market movements triggered by positive Phase 3 study results for Obefazimod in treating moderate to severe ulcerative colitis, which had sent the stock soaring by over 400% in pre-market trading.

Financial Outlook Strengthened Through 2027

The fresh capital significantly bolsters Abivax's financial position, which had dwindled to just $71.4 million in liquidity by the end of June. The biotech firm has outlined a clear allocation strategy: $140-185 million will fund clinical development of Obefazimod for ulcerative colitis, while $30-65 million will support Crohn's disease studies. The remaining funds will go toward general operations and commercialization preparations. This financing is expected to sustain the company through Q4 2027, extending approximately one year beyond the planned regulatory submission for ulcerative colitis treatment.

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Source StockWorld