Reuters tonight reporting that
$ABVX was indeed holding buyout these last weeks, according to 2 anonymous sources.
This M&A “rumor” I completely believe. There was no reason for
$ABVX to wait until the absolute end of June before releasing the part 2 data they already had *besides* them leveraging that interlude to talk with buyers.
Unsurprisingly, 3-4 weeks is too short a time to get a deal done with a brand new ~1,000 patient dataset for multiple pharmas to review and submit bids over. I think we can confidently say dozens of 14D-9s confirm 3-4 weeks would be far too fast for a deal of this size.
Also unsurprisingly,
$ABVX couldn’t sit on that data forever and the June deadline was self-imposed. They knew the stock would go up with the new data and that they’d be able to raise cash for negotiation leverage while giving (likely multiple) bidder(s) more time to complete their diligence. Recall that raising cash post data was their publicly stated plan all along.
So, Reuters is (per sources) confirming what I suspected…while the market was freaking out about the (now debunked) cancer scare,
$ABVX was full steam into BD discussions knowing the stock would soon rerate with the part 2 update.
Now, there’s some more interesting details to parse through….
reuters.com/legal/litigation…