Japan’s Daiichi Sankyo Shares Drop After Discounted Block Trades

Daiichi Sankyo Co. shares dropped the most in three months following a series of discounted block trades in the Japanese pharmaceutical company.

The stock sank 7.2% in Tokyo on volume more than 300% its three-month average, according to data compiled by Bloomberg. Custody Bank of Japan Ltd., SMBC Trust Bank Ltd. and Mitsui Sumitomo Insurance Co. offered blocks totaling as much as ¥188 billion yen ($1.3 billion) at prices representing a discount of up to 7% from Wednesday’s close, according to terms of the deal seen by Bloomberg News.

“Since large blocks were sold all at once, it gives the ...