Abivax (ABVX) CEO Marc de Garidel has dismissed rumors that U.S. pharmaceutical giant Eli Lilly (LLY) is planning to make a takeover bid for the French company as “noise.”
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In an interview, the Abivax CEO says that ongoing media reports about Eli Lilly taking a run at the French pharmaceutical concern is nothing more than speculation. He also dismissed of an ongoing review by French authorities into Abivax.
The comments from de Garidel come after the French government said recently that it has had no talks with Eli Lilly about an acquisition of Abivax. For its part, Eli Lilly executives have been tight lipped concerning persistent rumors that it wants to acquire Abivax, which specializes in treatments for chronic inflammatory diseases.
Driving ABVX Stock Higher
While there has been no acquisition bid for Abivax and Eli Lilly has not confirmed any interest in purchasing the company, the ongoing rumors have been enough to send ABVX stock sharply higher. In the last 12 months, Abivax’s Nasdaq-listed shares have risen an incredible 1,700%.
The big move higher has been almost entirely due to rumors that Abivax is a takeover target, and that its medications complement Eli Lilly’s weight-loss drugs. Ironically, ABVX stock tends to rise each time a takeover rumor is denied, including by the French government. There is also investor excitement about Abivax’s new inflammatory bowel disease drug called Obefazimod.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 18 Buy and two Hold recommendations issued in the last three months. The average LLY price target of $1,191.89 implies 14.64% upside from current levels.
