Combining anti-viral and anti-inflammatory actions, ABX464 looks ideally placed for the COVID therapy. Data from the on-going COVID Phase 2b / 3 would be transformational with a still immediate need for treatment; effective vaccines still face substantial manufacturing and distribution hurdles. With strong Phase 2 safety and efficacy data in ulcerative colitis, Abivax also remains substantially undervalued on the basis of its ABX464 chronic inflammatory programme alone. Now fully funded to complete and capitalise on its on-going Phase 2b in UC, we see strong probability of a major partnering deal with or without COVID. While success in COVID would drive valuation beyond €70 / share, the inflammatory programme supports a DCF valuation of €34 share. We strongly reiterate our OUTPERFORM recommendation with an increased target price of €50 / share (from €40 / share).
11 Nov 2020
Calming COVID and the inflammatory storm
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Calming COVID and the inflammatory storm
Combining anti-viral and anti-inflammatory actions, ABX464 looks ideally placed for the COVID therapy. Data from the on-going COVID Phase 2b / 3 would be transformational with a still immediate need for treatment; effective vaccines still face substantial manufacturing and distribution hurdles. With strong Phase 2 safety and efficacy data in ulcerative colitis, Abivax also remains substantially undervalued on the basis of its ABX464 chronic inflammatory programme alone. Now fully funded to complete and capitalise on its on-going Phase 2b in UC, we see strong probability of a major partnering deal with or without COVID. While success in COVID would drive valuation beyond €70 / share, the inflammatory programme supports a DCF valuation of €34 share. We strongly reiterate our OUTPERFORM recommendation with an increased target price of €50 / share (from €40 / share).