Medincell's Stock Drops 3.91% by Midday this Friday, December 12

Stock Performance and Market Dynamics

At 28.02 euros by midday on Friday, December 12, 2025, Medincell's stock has declined 3.91% from the previous day's close of 29.16 euros, with trading volumes limited to 0.34% of the capital. This correction follows a notable upward trend: the stock still shows an increase of 8.19% over a week, 44.06% over three months, and 80.54% over a year. The decline observed this Friday is part of a consolidation phase after Teva's strategic announcement on Monday, December 9, about the regulatory submission to the FDA for Olanzapine LAI, a long-acting injectable treatment for schizophrenia. This news had boosted the stock to 27.50 euros at the close on Wednesday, December 10, before further in-session gains on Thursday. The main catalyst for this upward momentum is the first half 2025-2026 results published on December 9, showing a 50% increase in operating income to 14.1 million euros and a 35% increase in revenue to 11.6 million euros. Concurrently, Teva's submission of a New Drug Application (NDA) to the FDA for Olanzapine LAI marks a critical regulatory milestone. According to usual FDA timelines, approval could occur in the fourth quarter of 2026. Jefferies raised its price target from 22 to 50 euros last November, reflecting the commercial potential of this molecule.

Technical Analysis and Market Position

Technically, the stock is significantly above its 200-day moving average (20.05 euros), confirming a long-term bullish bias. This setup indicates that the underlying trend remains favorable, despite occasional corrections. However, the stock remains below the resistance of its 50-day moving average (30.95 euros), a threshold it needs to cross to confirm a sustained exit from its consolidation phase started in late November. Crossing this technical threshold could pave the way for a new appreciation phase. The Relative Strength Index (RSI) stands at 55, indicating a neutral zone that suggests a balance between buyers and sellers, after reaching oversold levels at the beginning of the week. This normalization of the RSI partly explains the retreat observed this Friday, as the stock quickly integrated the announcements from December 9. With identified support at 25.90 euros and higher resistance at 38.46 euros, the stock has a technical corridor conducive to continued appreciation, subject to regulatory and commercial confirmations in the coming quarters. Medincell's entry into the MSCI World Small Cap Index since November 24, 2025, should increase the stock's visibility among institutional investors.

Financial Health and Future Prospects

Despite a semi-annual operating loss of 6.6 million euros, showing a 13% improvement year-on-year, Medincell benefits from a robust cash position of 49.8 million euros at the end of the first half. Research and development expenses amounted to 13.3 million euros, reflecting the intensity of investments in the pipeline. The company anticipates an acceleration of revenues in the coming years due to Olanzapine LAI, whose launch is expected in 2026 if approved by the FDA. CFO Stéphane Postic has confirmed the operational profitability target for the fiscal year 2026-2027. Results from the phase 3 SOLARIS trial, including 56-week data, demonstrated the efficacy, safety, and tolerance of the product in participants aged 18 to 64 years with schizophrenia, with no cases of post-injection delirium or sedation syndrome (PDSS) observed. This competitive advantage over existing formulations strengthens analysts' confidence. Medincell is also continuing its development with AbbVie for a program whose regulatory filing is planned for 2026, as well as several global health projects supported by funding from the Gates Foundation. The modest trading volumes reflect the absence of selling pressure but also a consensus still under construction around the stock's valuation.