Medincell shares fell sharply on the Paris Bourse on Wednesday, following the announcement of disappointing results from a Phase 3 clinical trial for the treatment of pain.

By mid-day, the stock had lost more than 7%, making it one of the biggest decliners on the Paris market.

The trial evaluating F14, a new local non-steroidal anti-inflammatory drug (NSAID) developed by Arthritis Innovation Corporation (AIC), failed to meet its primary endpoint, based on pain intensity over 14 days.

Injected using Medincell's BEPO technology, F14 benefits from a prolonged release administered into the joint at the time of total knee arthroplasty.

For analysts at Invest Securities, Medincell's recent run of good news has come to an end with this setback, although they put its significance into perspective.

"We believe that this setback should not be taken as a negative message, as this Phase 3 program is not identified as a flagship program for the company", they point out.

The collaboration with Teva is, in our view, the core of Medincell's current valuation, and the recent agreement signed with AbbVie should enable the company to build a strong franchise in its inflammation portfolio", adds the brokerage firm.

"The failure of AIC should remain 'minor' in view of the potential of the other programs in the pipeline", concludes Invest.

The share is still posting a gain of 140% over the last six months.

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