Sun Pharma Shares Rise After Announcement Of Its Weight Loss Drug To Fight Obesity

After a bad end to the previous trading week, Gujarat-registered, Mumbai-based Sun Pharma appears to have bounced back from the red sea at Dalal Street. The company shares are trading in the green after the company announced the results of a drug test that could aid in weight loss and fight obesity.

Company Shares Jump After Reports

On Saturday, June 22, the pharma company announced the results of the scientific experiment and investigation it conducted on the drug GL0034 (Utreglutide).

The findings of the report were presented at the American Diabetes Association's 84th Scientific Sessions.

The company shares started in green on Monday, June 24. It rose by 2.13 per cent or Rs 31.25, taking the overall value of the shares to Rs 1,498.50.

It is to be noted that just last week, the company was in the headlines when the USFDA raised concerns about its manufacturing facility in Dadra and found it to be violating norms.

This development also spilled onto the equity market, as the shares dropped by over 2 per cent. In fact, over the past five days alone, the company lost 1.39 per cent or Rs 21.10, highlighting the pressure the company was potentially under.  

Weight Loss in 29 Days

The study conducted by the company involved 24 obese male participants. These 24 participants were divided into two tranches. Both groups were given the drug. One group was given a steady dose, while the other group was subjected to an increasing dosage.

In the test, weight loss was observed from baseline on Day 29 and continued through Day 43.

This development appears to have appealed to some investors, as this drug, especially in a country like India, which has become a hotspot for obesity-related issues, is a drug of revolutionary proportion.

This could potentially change the healthcare paradigm. The approval and subsequent success of the drug could play a pivotal role in the company's prospects in the near and distant future.