SPARC Drops Over 17% After Sun Pharma Halts Development of Key Drug, SCD-044 (Vibozilimod)

Sun Pharma Advanced Research Company (SPARC) share price dropped by over 17% to ₹169.66 on June 4, 2025, after it announced the failure of its Phase 2 clinical trials for a key drug, SCD-044 (Vibozilimod).

Clinical Trials for Psoriasis and Eczema Fall Short

On June 3, 2025, Sun Pharmaceutical Industries Ltd announced that its Phase 2 trials for SCD-044, a drug intended to treat moderate to severe psoriasis and atopic dermatitis (eczema), did not achieve their goals. The psoriasis study involved 263 participants, and the eczema trial included 250 people.

In both studies, the drug failed to deliver the required 75% improvement in symptoms (measured by PASI75 for psoriasis and EASI75 for eczema) after 16 weeks of treatment. As a result, Sun Pharma has decided to stop all clinical development of SCD-044.

No Major Safety Issues Reported

Despite the disappointing outcomes, Sun Pharma stated there were no significant safety or tolerability concerns in the trials. The company expressed gratitude to the patients and healthcare professionals who participated.

About the Drug – SCD-044

SCD-044 is a new oral drug that targets S1P receptor 1, which plays a role in managing autoimmune and inflammatory diseases. The drug works by reducing the number of disease-causing lymphocytes (a type of white blood cell) in the bloodstream. A previous Phase 1 trial had shown promising safety results and a reduction in lymphocyte counts — an early indicator of potential effectiveness.

What’s Next for SCD-044?

Sun Pharma and its research arm, SPARC (Sun Pharma Advanced Research Company), will now review what to do next with the compound. However, no further trials for SCD-044 are planned at this time.

About Sun Pharma

Sun Pharmaceutical Industries Ltd is India’s largest pharmaceutical company and one of the world’s top speciality generics manufacturers. Headquartered in Mumbai, Sun Pharma has a strong global presence and offers products in dermatology, oncology, ophthalmology, and consumer healthcare.

Read More: Did Coforge Shares Really Hit a 52-Wk Low Today, June 4? Here's What Actually Happened. 

Sun Pharma share price

As of 10:49 am on June 4, 2025, Sun Pharma share price was trading at ₹1,656.20, down ₹11.30 or 0.68% for the day. The stock opened at ₹1,656.00, hit an intraday high of ₹1,666.50, and a low of ₹1,649.00. The company has a market capitalisation of ₹3.97 lakh crore, a P/E ratio of 35.11, and offers a dividend yield of 0.97%. Over the past 52 weeks, the stock has touched a high of ₹1,960.35 and a low of ₹1,377.20.

About SPARC 

SPARC is India’s first listed pharma R&D company, where the founders still own 70% of the business. It focuses on drug research and earns revenue from licensing technologies and R&D services.

Conclusion

The failure of SCD-044 is a big blow to SPARC’s drug development plans. Investors will now watch how the company and Sun Pharma respond to this setback, especially with regulatory pressure mounting at one of its key plants.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.