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

Abivax (NASDAQ:ABVX) is a clinical-stage biotechnology company. It focuses 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 ABVX. 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, ABVX 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.Although the stock later recovered to $129.69, the Jefferies price target of $90.00 is very close to the stock's low point after the news. This suggests the analyst believes the market's initial reaction was justified and that the stock's valuation should more heavily account for these safety risks.

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

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