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Shares of Sun Pharmaceutical Industries plunges over 3% to hit intra-day low after a US court ruling stalled the launch of its new drug
Sun Pharma Share Price Today
Shares of Sun Pharmaceuticals fell by 3.62 per cent in an early trading session to Rs 1,791.15 on BSE after the firm announced on Saturday that the US District Court of New Jersey has granted a preliminary injunction preventing it from launching its new drug, Leqselvi, until further legal developments or the expiry of the patent at the center of the lawsuit.
Court Ruling Blocks LEQSELVITM Introduction
The New Jersey court’s decision imposes a preliminary injunction that prevents Sun Pharma from marketing LEQSELVITM until the court reaches a final ruling or the contested patent expires. This decision comes after Sun Pharma initiated a challenge against the patent on August 1.
Despite the company’s objections, the court upheld the injunction last Friday, effectively stalling the drug’s entry into the US market. Sun Pharma has expressed its disagreement with the ruling and has announced plans to appeal, which may add an element of uncertainty for investors.
In addition to the legal developments, Sun Pharma reported a solid financial performance for the quarter ending September 30, 2024. The company posted a consolidated net profit of Rs 3,040 crore, marking a 27.94 per cent increase compared to the same period last year. Revenue for the quarter was Rs 13,291 crore.
Sun Pharma reported an Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) of Rs 3,939 crore. However, the EBITDA margin for the quarter was 29.6 per cent, slightly below the market estimate of 30 per cent.
Sun Pharmaceutical shares have delivered positive returns across various time frames. Over the last three month, the stock has shown a positive return of 7.32 per cent, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 22.34 per cent, showcasing the stock’s resilience and upward momentum.
Year-to-date, Sun Pharmaceutical shares have surged by 47.56 per cent, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 64.05 per cent. These consistent positive returns underscore the stock’s strong performance and appeal to investors.
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