Webdisclosure.com

Search

ABIVAX Abivax SA (ABVX-FR): Ready to deal with inflammation

Directive transparence : information réglementée

25/06/2019 16:15

goetzpartners securities Limited
Abivax SA (ABVX-FR): Ready to deal with inflammation

25-Jun-2019 / 15:15 GMT/BST


Free to access research and investor meetings in a post-MiFID2 world.

This research report is intended for use only by persons who qualify as professional investors or eligible counterparties (institutional investors) in the applicable jurisdiction, and not by any private individuals or other persons who qualify as retail clients.

 

Published to the market and investors on 25th June 2019 @ 7.38am (BST).


Abivax SA
Recommendation: OUTPERFORM
Target Price: EUR 31.30 (increased from EUR 28.80)
Current Price: EUR 7.95 (CoB on 24th June 2019)

KEY TAKEAWAY

Focussed on identification and exploitation of regulators of immunity and inflammation, Abivax has two major products in clinical trials. With Phase 2a efficacy on a par with recently approved tofacitinib, ABX464 shows sustained benefit in ulcerative colitis ("UC") without the safety concerns of JAK or anti-TNF drugs. Moving into confirmatory Phase 2b for UC and Phase 2a in Crohn's and rheumatoid arthritis ("RA"), ABX464 promises a meaningful share of the $70bn anti-inflammatory market and a substantial licensing agreement by 2020E. Entering Phase 1/2, ABX196 is a powerful activator of iNKT cells with potential to extend the benefits of PD-1 / PD-L1 immune checkpoint inhibitors ("ICI"). Sustained by ICIs iNKT cells act directly on cancer cells as well as promote the anti-tumour activity of key ICI-activated cells; a strong rational for synergy. Funded until Q1/2020E, we believe the ABX464 data provide a strong basis for licensing to provide development funding thereafter. We reiterate our OUTPERFORM and increase our TP to EUR31.30 (from EUR28.80).

Anti-inflammatory benefits compare well to current drugs -
With healing and clinical improvement in UC on a par with tofacitinib, six- and nine-month data from the Phase 2a extension study indicate that ABX464 clinical benefits are sustained. We are optimistic that a full assessment scheduled for 12 months will show continued healing.

Safe and well tolerated - With >200 patients treated in UC and HIV, ABX464 appears safe and well tolerated with no evidence of the infections and serious issues associated with anti-TNF or small molecule drugs like tofacitinib. The 12-month Phase 2a extension study has now been extended to 24 months based on ABX464's safety and efficacy.

Further data and partnering expected - A dose-ranging Phase 2b trial in 232 patients aims to confirm the benefits of ABX464 in UC with PoC Phase 2a trials planned in Crohn's and RA all reporting 2020E. Abivax is optimistic of securing a licensing / development partner for ABX464 by Q1/2020E.

Large unmet need in substantial market - Although anti-TNF drugs have transformed inflammatory therapy, 30% - 40% of patients fail or cease to respond. There is a need for a safe effective orally available alternative.

ABX196 promises real synergy with checkpoint inhibitors - The anti-tumour action of iNKT cells and their potential synergy with PD-1 / PD-L1 immune checkpoint inhibition is well established. A well characterised iNKT cell activator, ABX196 has potential that sets it apart from the myriad of other ICI combinations as it moves into Phase I / II trials with nivolumab.

Under-valued at current levels - Currently funded through Q1/2020E, the company aims to secure long term funding through though ABX464 partnering. We are optimistic that this will be achieved based on the strength of the UC Phase 2a data. DCF analysis indicates a current valuation of EUR31.30 rising to > EUR50 / share with PoC in Crohn's and RA.

 
 

Kind regards,


Chris Redhead | Analyst
goetzpartners Healthcare Research Team | Research Team

goetzpartners securities Limited

The Stanley Building, 7 Pancras Square, London, N1C 4AG, England, UK.

T +44 (0) 203 859 7725 | T +44 (0) 203 859 7728 | chris.redhead@goetzpartners.com / healthcareresearch@goetzpartners.com / londonoffice@goetzpartners.com

www.goetzpartnerssecurities.com

goetzpartners securities LinkedIn page

Registered in England No. 04684144.

Managing Directors: Dr. Stephan Goetz and Ulrich Kinzel.


goetzpartners securities Limited - Team Members

Senior Management - Ulrich Kinzel, Brigitte de Lima and Paul W. Dunne.

Equity Research Analysts - Brigitte de Lima, Chris Redhead, Martin Piehlmeier and Kieron Banerjee.

Equity Sales - Danny De jong.

Corporate Finance - Ulrich Kinzel, Wolf Dornbusch and Youchen Xin.

Corporate Access - Tanya Tracey and Danny De jong.

Compliance & Research Production - Paul W. Dunne.


Click here to see our privacy policy.


GPSL has a formal client relationship with Abivax SA.

GPSL publishes and distributes "Corporate Issuer Sponsored" Research. Our Corporate Issuer Sponsored Research and investor meetings (e.g. NDRs, 1 to 1 meetings) are free to access and attend and is not classified as an inducement in a post-MiFID2 world, this is because the issuer is paying GPSL. GPSL does not offer any execution or market making services. This is a marketing communication as defined by the Financial Conduct Authority ("FCA"). The information herein is considered to be an acceptable minor non-monetary benefit as defined under FCA COBS 2.3A19(5).

If our contractual relationship with clients ceases, then please be advised that we will no longer publish equity research on the specific client and any recipients of our equity research publications should not rely on our forecasts / valuation that have previously been published in the last full company research publication. Please note that GPSL will not publish a cessation of coverage notice to the market. Also, in accordance with the provision of MiFID2 - if our clients are not contractually paying GPSL to write and publish equity research, then we will not publish any future equity research publications to the market on the issuer until all of our unpaid fees have been paid.

In accordance with the General Data Protection Regulation ("GDPR") - if you would like to be removed / unsubscribed from our CRM (also please note that you are free to contact GPSL at any time in the future to have your e-mail subscription amended), please e-mail:
londonoffice@goetzpartners.com

About GPSL: goetzpartners securities Limited is a member of the goetzpartners group, and a leading pan European investment bank and research company. We bring together a wide range of expertise, insights and innovations to advance the interests of our clients around the world. The fast-changing environment brings challenges for businesses and investors. Research innovation, digital transformation and disruptive business ideas reshuffle the corporate world at a relentless pace. Our sector knowledge and our global footprint bring together corporate intelligence and a deep understanding of the industry with a wide network of top decision makers. These collective insights help our clients to stay at the leading edge of change.

This research report is intended for use only by persons who qualify as professional investors or eligible counterparties (institutional investors) in the applicable jurisdiction, and not by any private individuals or other persons who qualify as retail clients.

This communication (including any attachments) from goetzpartners securities Limited ("GPSL") is confidential and may contain information which is proprietary, privileged or otherwise legally protected against unauthorised use or disclosure. If you receive this communication in error or are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication, and note that any review or dissemination of, or the taking of any action in reliance on this communication is expressly prohibited. GPSL shall not be liable for the improper or incomplete transmission of the information contained in this communication nor for any delay in its receipt or damage to your system. GPSL does not guarantee that the integrity of this communication has been maintained nor that this communication is free of viruses, interceptions or interference and makes no warranties in relation to these matters. This is not an offer or a solicitation to buy or sell securities or investment products, or an official confirmation. GPSL record electronic and phone communications in accordance with FCA and MiFID2 regulations, they will be monitored for regulatory and training purposes. GPSL is authorised and regulated by the Financial Conduct Authority of the United Kingdom (Firm Reference Number: 225563).

Click on the following link for the GPSL MiFID2 Investor Guidance Notice

GPSL Equity Research publications are available on the following aggregators and via news distribution circuits (For Institutional Use Only): AlphaMetry, AlphaSense, Bloomberg (GOET), Capital IQ, EQS, FACTSET, ResearchFN, Research Tree, RNS Reach, Sentieo and Thomson Reuters.

Please copy the below link and paste it into your browser for the full pdf version of the equity research report:

https://gp.bluematrix.com/sellside/EmailDocViewer?encrypt=c0945deb-defb-486e-9634-e852a32e7722&mime=pdf&co=gp&id=paul.dunne@goetzpartners.com&source=libraryView

Free to access research and investor meetings in a post-MiFID2 world.

This research report is intended for use only by persons who qualify as professional investors or eligible counterparties (institutional investors) in the applicable jurisdiction, and not by any private individuals or other persons who qualify as retail clients.



Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


End of Announcement - EQS News Service

830753  25-Jun-2019 

fncls.ssp?fn=show_t_gif&application_id=830753&application_name=news&site_id=symex