SPARC share price was down 17.97% and was trading at ₹160.10 on 11:02 AM on Wednesday. This sharp decline followed the announcement of disappointing results from Phase 2 trials of its experimental drug, SCD-044.
SPARC is a research-focused biopharmaceutical company that operates as a subsidiary of Sun Pharma. Its work is centred on developing innovative treatments in key areas such as cancer (oncology), brain-related diseases (neurodegenerative disorders), and conditions involving inflammation (inflammatory disorders).
SCD-044, also known as Vibozilimod, was developed to treat two common skin conditions: psoriasis and atopic dermatitis. However, the company revealed that the drug did not achieve its main goals in either of the trials. As a direct consequence, SPARC has decided to stop further clinical development of SCD-044.
Both Sun Pharma and SPARC will now re-evaluate the future of this compound. This news comes as a major setback because SCD-044 was considered one of the more promising experimental drugs in SPARC's specialised development pipeline.
At 11:05 AM, Sun Pharma share price was down 0.80% and was trading at ₹1,654.10.
In an official filing, SPARC stated that neither the "SOLARES PsO" study (for psoriasis) nor the "SOLARES AD" study (for atopic dermatitis) met their primary endpoints. These endpoints were defined as a 75% improvement in PASI (Psoriasis Area and Severity Index) or EASI (Eczema Area and Severity Index) scores after 16 weeks of treatment. This means the drug did not show the expected level of improvement in patients as hoped.
In its financial results for the fourth quarter of the fiscal year 2025 (Q4FY25), SPARC reported a total income of ₹20.96 crore. This was an increase of 38.8% compared to the ₹15.10 crore earned in the previous quarter (Q3FY25). However, the company's financial losses before tax grew to ₹105.41 crore, up from ₹79.44 crore in the third quarter. This indicates a 32.7% drop in profitability. Total expenses during the quarter also increased by 33.7%, reaching ₹126.37 crore from ₹94.54 crore in Q3.
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The failure of SCD-044 in its Phase 2 trials is a significant blow to SPARC's development pipeline and has had an immediate negative impact on its stock price. The company will now reassess its compound's future, while managing the inherent risks and challenges involved in pharmaceutical research and development.
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Published on: Jun 4, 2025, 11:26 AM IST
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