Pharma Stocks in News: Sun Pharma, Zydus Lifesciences shares in focus; here's why

Pharma Stocks in News, Sun Pharma Share Price, Zydus Lifesciences Share Price: Shares of two major pharmaceutical industries companies - Sun Pharmaceutical Industries and Zydus Lifesciences - are in investors or traders focus following corporate updates. At the last count (12:30 pm), Zydus Lifescience's shares surge as much as 1.65 per cent on Wednesday's session. On the other side, Sun Pharma shares decreased up to 1.10 per cent, in the morning session of the day.

Why Sun Pharma stock falls today?

Sun Pharma has announced that the discontinuation of its Phase II clinical trials for SCD-044, an investigational oral S1P receptor 1 agonist aimed at treating moderate to severe psoriasis. The decision follows the trial's failure to meet its primary endpoint at the 16-week mark.

After this, Sun Pharma shares fell by 1.10 per cent and touched an intraday low of Rs 1,649, while it had closed at Rs 1,667.50 on the previous day. Currently, the shares of the pharma company are trading at Rs 1,658.10 on the NSE. The stock has gained nearly 16 per cent in the last one year and over 200 per cent in five years. It has declined by around 10 per cent in the last one month.

What should investors do now?

Analysts at SBI Securities have termed the development as negative for the short term, citing the setback in the company’s research pipeline.

Why Zydus Lifesciences shares are up today?

Zydus Lifesciences revealed plans to acquire two biologics manufacturing facilities in the United States from Agenus Inc for an upfront payment of $75 million.

Moreover, the drug maker firm has secured exclusive licensing rights for Agenus’s next-generation immuno-oncology assets, Botensilimab and Balstilimab.

Shares of Zydus Lifesciences shares are surge as much as 1.65, hitting an intraday high of Rs 934.95 during the day per cent from the previous close of Rs 926.40. Over the past year, the stock has declined by 7.24 per cent, but shown long-term performance with a 158.81 per cent gain over five years. In the last six months, the stock has fallen by 4.06 per cent.

Analysts View

SBI Securities has a positive outlook on the acquisition for medium to long term, highlighting the strategic expansion of the company's biologics and oncology portfolio.

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)