Sun Pharma Advanced Research's Stock Down By More Than 18% After Psoriasis Drug Trial Fails
By Ankur Chandra | Published at: Jun 4, 2025 12:09 PM IST
Shares of Sun Pharma Advanced Research Company Ltd. plummeted nearly 18% after its parent, Sun Pharmaceutical Industries Ltd., announced that it is discontinuing development of its investigational drug SCD-044, following poor results from Phase 2 clinical trials in moderate to severe psoriasis and atopic dermatitis.
Why Did the Drug Trials Fail?
A double failure in efficacy is the primary reason to discontinue the development of the investigational drug SCD-044:
- Psoriasis Trial (263 patients): Did not meet the primary goal of achieving a 75% improvement in Psoriasis Area and Severity Index (PASI75) at Week 16.
- Atopic Dermatitis Trial (250 patients): Also failed to meet the 75% improvement in Eczema Area and Severity Index (EASI75).
Despite acceptable safety and tolerability profiles, the lack of efficacy outcomes eliminated SCD-044 as a commercial opportunity, dealing a significant blow to SPARC’s innovation-led portfolio.
“While we are disappointed with the top-line results of the clinical trials, we would like to thank all the patients and healthcare professionals who participated,” said Dr. Marek Honczarenko, SVP, Global Specialty Development, Sun Pharma.
The trials were a joint effort between Sun Pharma and SPARC, making the announcement a direct hit to SPARC’s pipeline valuation.
Stock Performance Snapshot
| Stock Details (as of 10:53 AM IST, June 4, 2025) | Figures |
|---|---|
| Current Price | ₹160.50 |
| Previous Close | ₹195.18 |
| Change | -₹34.68 (-17.77%) |
| Day’s Range | ₹156.14 – ₹185.00 |
| 52-Week High / Low | ₹258.00 / ₹109.30 |
| Traded Volume | 120.75 lakh shares |
| Traded Value | ₹198.35 crore |
| Market Cap | ₹5,208.22 crore |
| EPS (Trailing 4 Qtrs) | ₹0.00 (Loss-making) |
SPARC has been loss-making for eight consecutive quarters, and the failure of a marquee drug has further eroded investor confidence. For the quarter ended March 2025, SPARC posted a net loss of ₹5,977 lakh on revenue of ₹2,719 lakh.
Strategic Setback
SCD-044, a novel S1P receptor 1 agonist, was being developed to treat inflammatory conditions by modulating lymphocyte migration. While it showed promise in early studies through lymphocyte count reduction a known biomarker for efficacy the clinical proof did not translate into real-world disease improvement in patients.
With development now discontinued, SPARC and Sun Pharma will re-evaluate their approach in the specialty pipeline.
About Sun Pharma Advanced Research Company
Sun Pharma Advanced Research Company Ltd (SPARC) is a clinical-stage biopharmaceutical company that focuses on developing innovative therapeutics to improve patient care. SPARC’s therapeutic focus is in the areas of oncology, neurodegeneration, and immunology.
REF: https://nsearchives.nseindia.com/corporate/SUNPHARMA456_03062025171103_IntimationSE20250603_Top-line_Results_of_SCD-044_Signed.pdf
https://www.nseindia.com/get-quotes/equity?symbol=SPARC
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