Abivax SA announced that it will repurchase its September 2022 royalty certificates for a total of $90 million, paying $45 million in cash and financing the remaining $45 million with an interest‑free vendor loan that will be converted into a 403,347‑share American Depositary Share (ADS) offering priced at $111.57 per share, creating roughly 0.5 % dilution of the company’s share capital.
The purchase agreement was entered into on May 4 2026, with the transaction expected to close on or about May 7 2026. The announcement of the deal was made on May 5 2026, making it a new event for the current reporting period.
The repurchase removes a long‑term royalty obligation and simplifies Abivax’s capital structure, while the ADS offering provides a cost‑effective source of capital. Management indicated that the favorable market environment allows the company to acquire the certificates on attractive terms, and the transaction is expected to enhance financial flexibility and support the commercialization of its lead drug candidate, obefazimod. Abivax’s projected cash runway remains unchanged through the fourth quarter of 2027, with cash and short‑term investments totaling €530.4 million as of December 31 2025.
The royalty certificates were originally issued to a group of investment entities, including TCG Crossover Fund I, L.P., VHCP ABVX Holdings, LLC, Deep Track Biotechnology Master Fund, Ltd., Sofinnova Crossover I SLP, Invus Public Equities, L.P., FPCI BioMedTech, and Santé Holdings Srl. The vendor loan is interest‑free and will be fully converted into ADSs upon closing, ensuring that the company’s debt profile remains unchanged while providing shareholders with additional liquidity.
This transaction represents a significant financing event that materially impacts Abivax’s balance sheet and shareholder equity, and it is not a routine dividend or minor corporate action. The deal is expected to strengthen the company’s financial position without affecting its ongoing clinical development program.
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