Pharma stock hits 20% upper circuit after district court of Columbia granted judgement in its favour

Synopsis: Sun Pharma Advanced Research Company Ltd hit a 20% upper circuit after a U.S. court granted summary judgment in its favour, supporting its claim to a Priority Review Voucher tied to Sezaby’s approval, strengthening its regulatory and commercial outlook.

This company is engaged in the business of research and development (R&D) of pharmaceutical products and is now in the spotlight after it announced that the U.S. The District Court for the District of Columbia has granted summary judgment in its favour.

With market capitalization of Rs. 5,228 cr, the shares of Sun Pharma Advanced Research Company Ltd are currently trading at Rs. 161.10 per share, locked at 20% upper circuit in today’s market session, from its previous close of Rs. 134.25 per share.

Reason for upper circuit

Sun Pharma Advanced Research Company Ltd (SPARC) announced that the U.S. The District Court for the District of Columbia has granted summary judgement in its favour regarding the issuance of a Priority Review Voucher (PRV) linked to the approval of Sezaby. 

The dispute centered on the U.S. FDA’s decision to withhold the PRV, which SPARC contested. The Court ruled that the FDA’s refusal was “contrary to law,” clarifying that no phenobarbital sodium drug product had been “previously approved” under the relevant statutory definition, thereby supporting SPARC’s position. 

This judgment strengthens SPARC’s claim to the PRV as an asset that can significantly accelerate future drug approvals and gives the FDA 60 days to appeal the decision. SPARC’s CEO, Anil Raghavan, welcomed the ruling, stating that it validates the company’s long-standing stance on the matter.

Sezaby is a phenobarbital sodium injectable powder formulated without benzyl alcohol or propylene glycol. The US FDA has approved it for treating seizures in newborns.

About the company 

Sun Pharma Advanced Research Company Ltd (SPARC) is a specialty pharmaceutical company focused on developing innovative and advanced drug delivery systems, novel drug formulations, and new chemical entities. Spun off from Sun Pharma, SPARC operates as an independent research-driven entity aiming to bring improved, differentiated therapies to global markets across oncology, neurology, ophthalmology, and dermatology.

As of Q2FY26, Sun Pharma Advanced Research Company Ltd reported a 39% YoY decline in sales, falling to Rs. 7.86 crore from Rs. 12.9 crore. Despite lower revenue, profitability improved: EBITDA loss narrowed, moving from Rs. -104 crore to Rs. -65.9 crore. Net loss improved to Rs. -76 crore, and EPS improved by rising from Rs. -3.32 to Rs. -2.34, indicating better operational efficiency despite ongoing losses.

Written by Manideep Appana

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