Medincell shares gain 16% over one month, driven by FDA approval
The Montpellier-based biopharmaceutical company is rising intraday, in a Paris market that is slightly better oriented. The stock extends a rebound that began several weeks ago, following the shock caused by the US green light for a formulation developed with Teva. It nonetheless remains well below its levels from a year ago.
A month of gains that puts the stock back above its three moving averages
Medincell shares gain 1.97% to €26.88 in mid-afternoon trading, after rising 5.66% over the week and 15.96% over the month.
The move places the stock above its MM20 (€26.56, a gap of 1.20%), its MM50 (€24.45) and its MM200 (€24.87, a gap of 8.08%), which makes it stronger than at the start of the month.
The RSI at 56 remains neutral, with no sign of overheating. At €26.88, the price is approaching resistance at €29.06, while support stands at €21.74.
Over one year, the stock is still down 30.11%, and the 3.62% gain over three months only partially offsets that decline. The SBF 120 is up 0.27% and the CAC 40 is up 0.31%, while Medincell is outperforming both indices.
US approval for Teva and €13.8 million loan: what remains of October
October was an eventful month for the company. On October 9, FDA approval for Weltruza, a monthly injectable olanzapine formulation obtained by Teva, gave Medincell royalties and up to $112 million in milestone payments. Shortly afterward, a new €13.8 million loan with no dilution, announced on October 13, brought the financing secured since July to €41.8 million.
On valuation, the consensus of the analysts covered values the stock at about 977 times expected earnings for the current fiscal year, and 52 times those of the following year. The next technical benchmark is resistance at €29.06.
