The stocks of the French Biotech Firm climb 26% as the American pharmaceutical giant Eli Lilly makes an offer to buy the company for €15 billion (approximately $17.5 billion). The current market capitalization of Abivax is €7.77 billion ($9.08 billion); hence, Eli Lilly’s offer is double its current valuation.
Eli Lilly has a history of similar large acquisitions, which are followed by massive upheaval in the performance and valuation of the acquired companies. The pharma giant’s acquisition strategy includes creating and enriching its pipelines in all areas, including oncology, immunology, obesity, cardiovascular disease, and neuroscience.
What is Behind Eli Lilly’s Interest in Abivax?
Abivax is developing a drug called Obefazimod to treat a gastrointestinal disease called Ulcerative Colitis. The drug has the potential to become one of the “most used products” in the next decade, according to Abivax’s CEO Marc De Garidel. The reports on the drug’s efficacy have driven up the shares of the company in the past.
By acquiring Abivax, Eli Lilly will be able to continue its dominance in the gastroenterology market. Notably, Eli Lilly has already developed injectable drugs for both ulcerative colitis and Crohn’s disease. Yet, the missing part was an oral pill that treats the disease, which is exactly what Abivax is developing.
Ulcerative Colitis is a chronic inflammatory bowel disease (IBD) characterized by symptoms such as severe stomach pain, inflamed intestine, diarrhea, and bleeding. The drug market for the disease is projected to grow 6.2% annually, reaching up to $15.5 billion by 2033. Hence, Abivax’s drug can enrich Eli Lilly’s portfolio to adequately meet and dominate a large section of the pharma market in the next decade.
Eli Lilly’s History of Acquisitions and Bigger Plans
Eli Lilly has made a reputation for buying smaller biotech firms with promising drugs in their early years and seeing through the marketing of their drugs to generate sizable profits. The company currently has a market capitalization of $1.037 Trillion and a revenue estimate of $17.87 billion.
Eli Lilly’s famous acquisitions include Scorpion Therapeutics, ImClone Systems, Icos corporation, and the 2019’s $8 billion acquisition of Loxo Oncology. All of these deals equip the company to survive the patent cliff crisis, where it stands to lose patents of its blockbuster drugs over the next 5 years.
How Will the Acquisition Play Out in the Market
Abivax shares have already shot up to €124, showcasing an incredible journey from their €9 close in July 2025. The company has seen a 266% growth in the past 5 years. Hence, it’s clear that Abivax shares stand to grow higher when the deal with Eli Lilly is confirmed.
