Shionogi & Co. stock slumped 16 percent in Tokyo after preclinical studies showed its experimental COVID-19 drug disturbed fetal development, triggering concerns about its approval.
Kyodo News reported that the drug likely wouldn’t be recommended for pregnant women without giving attribution.
The animal data, which showed harm when given at high doses, was submitted to Japanese regulators in February when the company sought a priority review required for conditional approval, a Shionogi spokesman said.
The pill’s chance of commercial success fell to 5 percent from 50 percent after the report tying it to birth defects, making it less competitive, said Stephen Baker, an equities analyst at Jefferies & Co..
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