Abivax (NASDAQ:ABVX) Stock Plunges Amid Cancer Concerns, Jefferies Sets Bearish Price Target

• Despite meeting trial goals for its drug obefazimod, Abivax (NASDAQ:ABVX) faced significant safety concerns following reports of cancer cases in a late-stage clinical trial.
• The company's stock experienced a sharp drop of over 30% to $89.90 after the news, reflecting investor apprehension regarding the potential drug side effects.
• Jefferies analyst Faisal Khurshid issued a $90.00 price target, aligning closely with the stock's post-news low and suggesting a cautious outlook on Abivax's valuation due to the ongoing safety risks.

Abivax is a clinical-stage biotechnology company focused on developing new therapies for chronic inflammatory diseases. The company’s main drug candidate is obefazimod, which is being tested as a treatment for ulcerative colitis, a condition that causes inflammation in the digestive tract.

On June 2, 2026, Jefferies analyst Faisal Khurshid set a $90.00 price target for Abivax. A price target is an analyst's projection of a stock's future price. This target was established when the stock was trading at $129.69, indicating the analyst saw significant potential for the price to fall.

The day prior, Abivax announced that its drug, obefazimod, met the main goal in a late-stage trial. However, the stock price fell over 30% to $89.90. This crash occurred after it was reported that several patients in the study developed cancer, as highlighted by Investors Business Daily.

During the study, three patients in the highest 50-milligram dose group were diagnosed with cancer. In comparison, no cancer cases were found in the lower-dose or placebo groups. While the company deemed the cases unrelated to the drug, this safety information caused significant concern for investors.