Medincell SA experienced a sharp share sell-off on Wednesday after the French biopharmaceutical firm published its annual results for the fiscal year ended March 31 and indicated that a partnered clinical program will start later than anticipated.
The stock fell by more than 15% in the session, reversing earlier gains and placing the company into negative territory for the year - down 4.68% against its December 31, 2025 closing price of 25.20. Medincell had closed at 28.02 on June 16, the day it released the results after markets had closed. Trading activity stepped up markedly the following day, with 256,720 shares changing hands on June 17 versus 111,240 shares the prior session.
On the financials, Medincell reported a net result loss of 31.29 million for the year, compared with a loss of 18.44 million in the previous 12-month period. The operating result also deteriorated, showing a loss of 20.78 million versus an operating loss of 10.84 million a year earlier.
Total operating expenses rose 17% to 45.02 million from 38.49 million. The company attributed the increase to higher spending on research and development and platform initiatives, together with growth in commercial, business development and support functions.
Revenues decreased to 19.52 million, down 23% from 25.42 million the prior year. When combined with other income, the total fell 12% to 24.28 million from 27.73 million the year before. Medincell said the decline in combined revenues and other income reflected the absence of a non-recurring milestone payment recorded in the prior year tied to completion of a Phase 3 study for olanzapine long-acting injectable.
Royalties on net sales of UZEDY, the risperidone long-acting injectable marketed in the United States by Teva, rose to 9.3 million, an increase of 42% from 6.5 million the prior year. Measured in U.S. dollars, royalties increased 54% to $10.9 million from $7.1 million. Medincell said Tevas net sales of UZEDY grew 54% to $215 million.
Regarding its collaboration with AbbVie, Medincell said its first program with the partner is advancing toward clinical development. The company expects to complete chemistry, manufacturing and controls activities in 2026 to support initiation of clinical development by AbbVie in 2027. Analysts at Stifel noted that the phase 1 trial is now expected in 2027; Stifel had been anticipating a 2026 start.
Stifel maintained a buy rating on Medincell with a price target of 33. The firms valuation is based on a discounted cash flow model using a 12.5% weighted average cost of capital and assuming no terminal growth rate. Stifel said the rating reflects an expected total return of more than 10% over the next 12 months.
Medincell ended the period with 84.8 million in liquidity, comprised of 62.8 million in cash and cash equivalents and 22.0 million in low-risk financial investments. The companys cash position follows a private placement completed in March 2026 that raised 48.2 million in gross proceeds, or 44.8 million net.
Net financial debt was negative 15.29 million, compared with negative 7.30 million a year earlier, which the company described as a positive cash position net of indebtedness.
Context and market reaction
Investors reacted to the wider losses and the pushed-out timeline for the AbbVie-partnered clinical program by selling shares, amplifying volume and producing a double-digit decline. The companys higher spending on R&D and platform expansion, coupled with a year-over-year revenue decline, underpinned the weaker operating result for the fiscal year.
Despite the setback on the share price, Medincell retains a strengthened liquidity buffer following its March financing, and royalties from UZEDY contributed a meaningful and growing revenue stream in both euro and dollar terms.
What to watch next
- Progress on chemistry, manufacturing and controls work through 2026 to support AbbVies planned start of clinical development in 2027.
- Quarterly updates on operating expenses and the pace of R&D and commercial investments.
- Royalties and underlying net sales trends for UZEDY reported by Teva, and any related cadence in royalty receipts.