With compelling Phase 2 data in both ulcerative colis("UC") and rheumatoid arthritis ("RA") ABX464 looks well positioned as a potential broad range anti-inflammatory. Oral and safe ABX464 appears has efficacy on par and better sustained than competing drugs. Phase 2b UC data shows 58% of patients in clinical remission after 48 months of maintenance therapy. Phase 2a rheumatoid arthritis ("RA") data achieved the primary safety and tolerability endpoint and statistically significant improvement in ACR20 with encouraging signals in other disease measures; despite being insufficiently powered. 60 patients with inadequate response to methotrexate and / or TNFα inhibitors were included. Due to enter pivotal Phase 3 in UC in Q1/2022E, ABX464 looks set to transform the $90bn anti-inflammatory market populated by drugs of questionable safety, poor convenience and often lacking sustained efficacy. Funded through Q2/2022E, management has indicated it intends to list on NASDAQ to fund ABX464 development and as a platform acquisition or licensing. We reiterate our OUTPERFORM recommendation at our new target price of €60 / share (previously €71) reflecting funding risk.
