Ipsen stock breaks through support at €147.90 and extends its decline
Pressure continues to mount on the Paris-based biopharmaceutical laboratory. Four days after U.S. authorization of a generic version of lanreotide, the active ingredient in Somatuline, Ipsen continues its deterioration and ranks among the most neglected stocks in the broader index at the end of the week.
A decline of 3.82% that breaks through support at €147.90 and prolongs the losing streak
The stock falls 3.82% to €143.40 in trading, after closing at €149.10 the previous day. The decline is all the more pronounced as the SBF 120 is evolving virtually flat (+0.03% in session), which clearly isolates Ipsen's move. The downward breach of the €147.90 support level, which occurred during the session and was not recovered higher, extends a slide that has been underway for several weeks: the stock is down nearly 8% over one week and nearly 12% over one month.
Over all these levels, Ipsen nevertheless remains in positive territory over twelve months, with an annual gain of nearly 25%. Market conditions offer little cushion: the dollar is evolving at a two-month high and U.S. yields are at elevated levels, which tightens global financial conditions and weighs on all pharmaceutical growth stocks.
An RSI at 37 and three moving averages above price: the technical configuration remains unfavorable
Technical analysis confirms selling pressure. Ipsen is trading below its three moving averages: the 20-day MA at €158.80, the 50-day MA at €159.96 and the 200-day MA at €153.44, with gaps of respectively 9.70%, 10.35% and 6.54% above the current price. This positioning below the 200-day MA is particularly significant as it marks a break in medium-term trend. The RSI at 37, without reaching the clear oversold zone below 30, reflects progressive exhaustion that does not yet suggest a technical rebound.
Against a fundamental backdrop, the analysts' consensus values the stock at approximately 9.6 times current fiscal year earnings, a multiple that reflects pressure from the entry of Amneal's generic: FDA authorization for lanreotide, obtained on September 21, had already triggered a decline of more than 7%. The next identifiable resistance level is at €153.44, the 200-day MA level, now far above the current price.
