$ABVX Part III

There is only one deal I can remember similar to the potential acquisition by Eli Lilly (NYSE:$LLY) of Abivax (NASDAQ:$ABVX) since France issued its updated guidance on foreign ownership.

That was the attempted acquisition of Velan (TSX:$VLN) by Flowserv (NYSE:$FLS) in 2023.

This deal was rejected by the French Ministry of Economy during its review which caused the stock to collapse.

So I went searching and found the 2024 report on the topic of foreign ownership.

The 2024 annual report on IEF control, published today, reports sustained activity: 392 cases were filed with the Directorate General of the Treasury, compared to 309 in 2023. 182 investment authorizations were issued , 54% of which were subject to specific conditions aimed at managing the identified risks.

So 50/50. But, only 14% were approved when defined as “R&D in critical technologies.”

The list of critical technologies is defined by a decree of 31 December 2019, which has been supplemented on two occasions to take account of developments in technologies necessary to safeguard national interests. 

In addition to cybersecurity, artificial intelligence, robotics, additive manufacturing, semiconductors, quantum technologies, and energy storage, biotechnologies were added in the context of the health crisis (decree of 27 April 2020), followed by “low-carbon” technologies to address energy dependencies, as well as photonics (decree of 28 December 2023).

So there you have it.