ABIVAX (ABVX) Announces $90M Agreement to Repurchase Royalty Certificates

ABIVAX Société Anonyme (NASDAQ:ABVX) is one of the best young stocks to buy and hold for the next decade. On May 5, ABIVAX announced a $90 million agreement to repurchase and cancel all royalty certificates issued in September 2022. The transaction will be funded through a combination of $45 million in cash and a $45 million offering of 403,347 ordinary shares, represented by American Depositary Shares/ADSs.

The ADSs were priced at $111.57 each, a figure based on the five-day volume-weighted average price ending May 1. This move aims to simplify the company’s capital structure and remove a significant royalty overhang ahead of future commercialization efforts. The issuance of shares to the certificate holders will result in a minor dilution of ~0.5% of the company’s share capital. Because the subscription price for the offering is being paid via a set-off against the vendor’s loan granted by the holders, ABIVAX will not receive any new cash proceeds from the transaction.

The offering and the cancellation of the royalty certificates are expected to close around May 7, subject to customary closing conditions. Despite the $45 million cash outlay, ABIVAX Société Anonyme (NASDAQ:ABVX) reported that its cash runway remains unchanged and is projected to last into Q4 2027. This financial position, supported by €530.4 million in cash and equivalents as of late 2025, continues to fund the company’s clinical programs and pre-commercial planning.

ABIVAX Société Anonyme (NASDAQ:ABVX) develops therapeutics targeting chronic inflammatory diseases.

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