Sumitomo Pharma Co. shares declined after a Japanese government panel endorsed a conditional approval for its regenerative therapy, built on technology pioneered by a Nobel Prize laureate.
The stock fell as much as 14.4% in morning trading on Friday on what appeared to be profit-taking after the company was granted a seven-year clearance, with additional data to be collected during the approval period. “Reports of the smooth green-lighting of the drugs could lead to some profit-taking in the short term,” Morgan Stanley MUFG analysts including Shinichiro Muraoka wrote in a report.