-31% for Abivax, stock punished after clinical study results
The French biotech faces a sharp setback the day after the phase 3 results of its flagship drug candidate in ulcerative colitis. The market heavily penalizes several safety signals observed in the trial, overshadowing the achievement of the primary efficacy endpoint. The stock is at the bottom of the SBF 120 at midday.
Historic plunge despite meeting the primary efficacy endpoint in UC
Abivax stock plummeted by 30.14% to €78.10, at the tail end of the SBF 120 while the index gained 0.55%. The stock has returned to levels not seen for several months, after having flirted with €118 last week. The drop follows the announcement on Monday of the phase 3 ABTECT maintenance trial results assessing obefazimod in ulcerative colitis. The two tested doses, 25 mg and 50 mg, however, achieved the primary endpoint of clinical remission at week 44, with adjusted differences versus placebo of 39.3 and 40.3 percentage points. The release, however, reported several cases of cancers or precancerous lesions observed in the trial, mainly in the 50 mg group, with no established link to the treatment. It is this safety profile, rather than the efficacy, that appears to dictate today's punishment. The operating loss was also reported at 56.2 million euros in Q1 2026, up from 47.2 million a year earlier, according to accounts published on May 26.
Breakdown of moving averages and increased pressure from short sellers
The price dives below its three moving averages: the MM20 at €106.34, the MM50 at €102.35, and the MM200 at €94.16, now more than 17% away from the current price. The support threshold at €93.50 gave way without transition, with the stock plunging directly into the €78 zone. The one-month volatility was already close to 56% before the session, illustrating the intensity of the debate around the case. The pressure from short sellers is intensifying: according to reviewed declarations, three funds now cumulatively hold 3.12% of the capital in a net short position, up by 0.41 points over thirty days. This level signals significant skepticism from institutional investors, who anticipate a decline or seek to cover a long exposure, without necessarily predicting the future direction of the stock. Over one year, the performance remains spectacular, at nearly 1,379%, reflecting the rally triggered by the initial positive clinical signals. The next step will revolve around the detailed reading of obefazimod's tolerance profile by the medical and financial community.
