On Monday, the Asian stock movement stayed narrow after being limited by the Chinese New Year closures, while CSL’s decline weighed down Australia’s ASX 200.
Markets in China, Hong Kong, Singapore, and South Korea shut for Lunar New Year, while Japan closed for National Day.
Australia’s ASX 200 declined by 0.39% to A$7,614.90 as CSL Ltd losses balanced numerous upbeat earnings following the biopharmaceutical company’s reported failure of a phase 3 trial for a heart attack drug.
Despite significant gains in ANZ Group Holdings Ltd and JB Hi-Fi Ltd following solid earnings in the three- and six-months ending December 31, CSL losses offset the overall performance.
According to reports, JB Hi-Fi experienced a significant surge of almost 7% following its reporting of a half-year profit decline that was less than anticipated.
Most Asian stocks showed little movement. India’s Nifty 50 futures indicated a stable opening before the crucial inflation data release. However, it slid by 0.74% to ₹21,623.25 in the Asian afternoon session.
Moreover, the reading comes just days following the Reserve Bank of India’s (RBI) recent caution about maintaining a predominantly hawkish stance due to potential inflation risks in the coming months.
CSL Dips on Heart Drug Failure, Steep Losses in Asian Market
Australian pharmaceutical giant CSL Ltd shares dropped on Monday as its phase 3 trial for a second heart attack drug missed efficacy goals.
After the medical failure, investors backed off nearly $7 billion market value following the firm’s reported setback in the test drug.
CSL reported that the CSL112 phase 3 trial failed to achieve its primary goal of reducing significant cardiovascular events within 90 days post-initial heart attack.
The company stated that they had yet to seek regulatory approval for the drug shortly after conducting the study. Additionally, CSL mentioned that the CSL112 trial is not anticipated to have any significant financial repercussions.
The research involved more than 18,200 participants across 49 countries, and CSL referred to it as the boldest study in the company’s record.
Bill Mezzanotte, the Executive Vice President, and Research and Development leader highlighted the substantial work ahead in thoroughly analyzing and understanding the complete dataset.
This process is crucial for determining the future development direction of the asset and is an integral part of the ongoing assessment.