Sun Pharma shares rise 2% on US launch of hair loss drug after settlement

Sun Pharma shares rose nearly 2 per cent on Tuesday after the company launched Leqselvi, a new treatment for severe alopecia areata

Shares of Sun Pharmaceutical Industries rose nearly 2 per cent on Tuesday after the company launched Leqselvi, a new treatment for severe alopecia areata, in the US, following the settlement of a patent dispute.

 

The Pharmaceutical firm's stock rose as much as 1.68 per cent during the day to ₹1,710.8 per share. The stock pared gains to trade 1.26  per cent higher at ₹1,703.8 apiece, compared to a 0.53 per cent advance in Nifty 50 as of 11:24 AM. 

 

Shares of the company gained for the third-straight day and currently trade at 2.4 times the average 30-day trading volume, according to Bloomberg. The counter has risen 9.5 per cent this year, compared to a 6.5 per cent advance in the benchmark Nifty 50. Sun Pharma has a total market capitalisation of ₹4.09 trillion.   Track LIVE Stock Market Updates Here

Sun Pharma launches hair loss drug

The pharma major launched Leqselvi in the US, a new medicine for severe alopecia areata -- a condition in which the immune system attacks hair follicles, leading to hair loss on the scalp as well as other parts of the body.

 

The delay in Sun Pharma's launch of Leqselvi in the US was caused by a patent infringement case, which was later settled in a US court with Incyte Corp. 

 

The drug underwent two clinical trials, THRIVE-AA1 and THRIVE-AA2, involving 1,223 adults between 18 and 65 years of age. The trials were conducted in the US, Canada, and Europe. Sun Pharmaceutical is also offering a 'Leqselvi Support Program' to help patients access the medicine. 

 

Hair regrowth was measured over a period of 24 weeks using a scoring system known as the Severity of Alopecia Tool (SALT), according to the company's statement. “Leqselvi is an important step forward for people living with severe alopecia areata,” said Richard Ascroft, CEO of Sun Pharma North America.

 

Elera Capital estimates that Leqselvi could become a $200-300 million opportunity over the next 3-5 years, potentially emerging as Sun Pharma’s second-largest product after Ilumya. The brokerage retains an Accumulate rating on the pharma company, with a target price of ₹1,871 per share. It flagged adverse US trade tariffs as a key near-term risk. 

Sun Pharma Q4 results

Sun Pharma reported a 19 per cent year-on-year decline in consolidated net profit for Q4FY25, coming in at ₹2,149.8 crore. However, revenue from operations rose 8 per cent to ₹12,958.8 crore for the quarter. Excluding exceptional items, adjusted net profit stood at ₹2,889.1 crore, marking a 4.8 per cent increase.

 

For the full financial year FY25, net profit grew 14 per cent Y-o-Y to ₹10,929 crore, while revenue increased 8 per cent to ₹52,578 crore.