Biophytis share price plunges 18.5%, weighed down by capital increase
The Parisian biotech company suffered a sharp decline in mid-morning trading, following a fundraising operation completed at a significant discount to recent prices. The operation, intended to finance the OBA clinical trial, mechanically impacts the share value due to the dilution it entails.
A capital increase at €0.052 that significantly dilutes existing shareholders
Biophytis announced this morning the completion of a capital increase of €5.3 million for the benefit of institutional investors, at a unit price of €0.052 per new share. This 24.1% discount relative to the weighted average price of the previous ten trading sessions explains the selling pressure observed during the session. The operation brings the number of shares in circulation to 350,132,497 units, representing significant dilution: a shareholder who held 1% of the capital prior to the operation without participating in it now holds only 0.71%, or even 0.57% if all attached warrants are exercised.
The funds raised are intended to finance the phase 2 OBA trial, which evaluates BIO101, the company's lead drug candidate, in preserving muscle function in patients treated with semaglutide. Two days earlier, on September 9, Biophytis had submitted to regulatory authorities an amendment aimed at expanding the scope of this trial, notably to add evaluation of weight regain after stopping semaglutide.
A share price below its 20-day moving average despite a quarterly gain exceeding 200%
The share is trading at €0.0544 during the session, representing a decline of 18.56% compared to the previous close at €0.0668. This correction brings the price well below the 20-day moving average, which stands at €0.08 (a deviation of -32%), erasing part of the recent gains. Over the week, the decline reaches nearly 27%. Nevertheless, over three months, the share still shows a gain of 214.6%, reflecting a spectacular rebound from very low levels.
The RSI at 52 remains in neutral territory, with no signals of excess in either direction. Both the 50-day and 200-day moving averages stand at €0.04, significantly below the current price, reflecting an underlying bullish structure despite today's correction. One-month volatility is elevated at 47.58, consistent with the profile of a small-cap biotechnology company in clinical phase. The support level identified at €0.02 remains distant; resistance at €0.13 represents a gap of over 100% from the current price, highlighting the amplitude of oscillations characteristic of this stock.
