Why Abivax Stock Was on Fire Today

Core Viewpoint - Investors are optimistic about a potential buyout of Abivax by Eli Lilly, leading to a significant increase in Abivax's share price by nearly 21% [1][4]. Group 1: Acquisition Interest - Eli Lilly, a major American pharmaceutical company, is reportedly interested in acquiring Abivax, as indicated by a report from French periodical La Lettre [2]. - Eli Lilly representatives have met with French Treasury officials to understand the regulatory requirements for the acquisition [2]. - This speculation follows a previous surge in Abivax's stock price due to similar rumors, despite Eli Lilly's refusal to comment on such business development activities [4]. Group 2: Company Performance - Abivax's recent positive results from a Phase 3 clinical trial of its ulcerative colitis drug obefazimod have likely attracted Eli Lilly's interest [4]. - Abivax's current market capitalization stands at $9.0 billion, with a trading range of $130.14 to $139.62 for the day [6]. - The stock has shown a 52-week range from $4.77 to $139.62, indicating significant volatility and investor interest [6]. Group 3: Market Dynamics - Eli Lilly has a history of opportunistic acquisitions, as evidenced by its recent purchase of Adverum Biotechnologies to enhance its ophthalmology pipeline [6]. - Despite the positive sentiment, there are doubts about whether a deal would occur at a high premium due to the ongoing speculation surrounding Abivax [7].