Jefferies downgraded the French biotech to Hold and cut its price target nearly in half, warning the cancer overhang won't resolve quickly

Abivax said its experimental treatment for ulcerative colitis showed significant efficacy in a closely watched trial, but shares of the company tanked on safety concerns.

A handful of cancer cases reported among treatment recipients overshadowed efficacy results analysts described as “best-in-disease” and sent shares down more than 30%.

Shares of French biotech Abivax tumbled 32% after it reported fresh data on its lead asset.

Obefazimod ha superato le aspettative di efficacia per le malattie infiammatorie intestinali, ma sono stati riscontrati dei tumori in alcuni pazienti a cui è stato somministrato

Abivax has proclaimed that its maintenance trial in ulcerative colitis delivered 'landmark' results, and the drug's safety profile has previously been one of its main potential…

"The cancer signal complicates matters."

Abivax shares plunge more than 35% as cancer cases reported in a Phase 3 trial overshadow strong efficacy results for ulcerative colitis drug.

Jefferies downgraded the French biotech to Hold and cut its price target nearly in half, warning the cancer overhang won't resolve quickly

The drugmaker has been viewed as a near-term takeover target for Big Pharma.