Sun Pharmaceuticals Industries’ shares fell nearly 4 per cent on Tuesday after its New York Stock Exchange-listed subsidiary Taro Pharmaceutical stopped commercial sales of Keveyis, a drug used in treatment of periodic paralysis.
“Taro will cease commercial sales and related promotional activities for Keveyis and bear all costs associated with its manufacture,” said the company in a statement to NYSE.
Keveyis was launched about six months ago and analysts expected revenue of $60 million by FY18. However, the actual sales so far have been less than $1 million.
Taro in a statement said, “Given the high costs and resources required to identify and reach a limited number of viable patients, Taro realizes that it cannot sustain its current level of investment. Based on these learnings, Taro now believes that it can better serve all stakeholders, including patients, by ceasing commercial sales and related promotional activities for Keveyis.”
Analysts expect the move to impact Sun Pharma’s EBITDA by 2 per cent.As of 12:10 p.m., Sun Pharma traded 1.24 per cent lower at Rs 801, underperforming the Nifty which was up 0.55 per cent.