SPARC shares crash 19% after Psoriasis drug fails to deliver in trials

SPARC slips 19 percent as psoriasis drug disappoints in trials

Shares of Sun Pharma Advanced Research Company (SPARC), the research arm of India’s largest drugmaker Sun Pharma, plunged 19 percent to Rs 158 apiece on June 4 following disappointing Phase 2 trial results of its investigational drug SCD-044.

SCD-044, also known as Vibozilimod, was under development for treating psoriasis and atopic dermatitis. However, the company revealed that the drug failed to meet the primary endpoints in both trials. As a result, SPARC announced the discontinuation of further clinical development for SCD-044.

Both Sun Pharma and SPARC will now reassess the future of the compound.

The development comes as a setback, as SCD-044 was considered one of the more promising assets in SPARC’s specialty pipeline. In an exchange filing, the company stated that neither the SOLARES PsO nor the SOLARES AD study met their primary endpoints—defined as a 75 percent improvement in PASI (Psoriasis Area and Severity Index) or EASI (Eczema Area and Severity Index) scores at Week 16.

SPARC, a research-driven biopharmaceutical subsidiary of Sun Pharma, is focused on innovation in areas like oncology, neurodegenerative diseases, and inflammatory disorders.

For the fourth quarter of FY25 (Q4FY25), SPARC reported total income of Rs 20.96 crore, a quarter-on-quarter increase of 38.8 percent from Rs 15.10 crore in Q3FY25. However, its loss before tax widened to Rs 105.41 crore from Rs 79.44 crore in the previous quarter, reflecting a 32.7 percent drop in profitability. Total expenses during the quarter rose by 33.7 percent to Rs 126.37 crore from Rs 94.54 crore in Q3.