Sumitomo Pharma shares plunge 12% despite greenlight for Parkinson's treatment

Group 1 - Shares of Sumitomo Pharma fell over 12% following profit-taking after government endorsement of its iPS cell-based therapy for Parkinson's and heart disease [1] - The stock rose more than 300% in 2025, reaching its highest level since 2019 due to increasing confidence in its Parkinson's therapy [2] - Analyst Hidemaru Yamaguchi from Citigroup Global Markets Japan noted that while the treatment has potential for widespread use, it is expected to contribute almost no profit in the near term, indicating that recent stock gains have been excessive [3] Group 2 - The endorsement of the therapy follows years of research, including the work of Nobel Prize winner Shinya Yamanaka, who first generated iPS cells from mice in 2006 [4] - Sumitomo Pharma is involved in developing and marketing prescription medicines across various therapeutic areas, including neuroscience, oncology, and regenerative medicine [4]