Sumitomo Pharma shares plunge despite greenlight for Parkinson’s treatment
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Shares of Japanese drugmaker Sumitomo Pharma fell more than 12% on Friday, a day after the government appeared to be taking profits. Approves company’s iPS cell-based therapy For Parkinson’s and heart disease.
The decision is a milestone in Japan’s years-long efforts to develop a homegrown industry focused on cutting-edge cellular therapies.
Shares of Sumitomo Pharma, which have risen more than 300% in 2025, reached their highest level since 2019 last week as confidence in the Parkinson’s treatment increased.
Citigroup Global Markets Japan analyst Hidemaru Yamaguchi said that although the treatment has been widely used in Japan and the United States in the long term and broke box office records, it will not contribute much to profits in the near term. He added that Sumitomo’s shares were overheated and recent gains were “excessive.”
Official approval will be given within the next one to two months, according to Japan’s Ministry of Health, Labor and Welfare, NHK reported.
Sumitomo Pharma develops and markets prescription drugs in many therapeutic areas, including neuroscience, oncology and regenerative medicine.
