June 4, 2025
New Delhi, India
SPARC Shares
Shares of Sun Pharma Advanced Research Company Ltd (SPARC) nosedived nearly 20% to ₹156.50 on Wednesday, June 4, after the company announced disappointing Phase 2 trial results for its investigational drug Vibozilimod (SCD-044), developed in collaboration with parent firm Sun Pharmaceutical Industries Ltd (Sun Pharma).
Sun Pharma also witnessed a mild decline of 0.47%, trading at ₹1,659.80, following the setback.
The Phase 2 studies — SOLARES PsO for psoriasis and SOLARES AD for atopic dermatitis — failed to meet primary efficacy endpoints, defined as a 75% improvement in PASI (Psoriasis Area and Severity Index) and EASI (Eczema Area and Severity Index) by Week 16. The trials were structured as randomized, double-blind, placebo-controlled studies involving 263 and 250 participants, respectively.
In light of these results, Sun Pharma has decided to discontinue further development of SCD-044 for atopic dermatitis, though no major safety concerns were reported.
“This outcome is disappointing,” said Marek Honczarenko, SVP and Global Specialty Head at Sun Pharma. “But we remain thankful to the patients and healthcare professionals involved in these pivotal trials.”
SPARC, a research-driven biopharma arm of Sun Pharma, noted that both companies are now re-evaluating the strategic path for SCD-044. The failure marks a significant blow, as the molecule was considered one of the most promising assets in SPARC’s specialty pipeline targeting inflammatory disorders.
Financial Snapshot
For Q4FY25, SPARC reported a 38.8% QoQ rise in income at ₹20.96 crore, but its pre-tax loss widened to ₹105.41 crore, compared to ₹79.44 crore in Q3FY25. Total expenses surged 33.7% to ₹126.37 crore.
Industry Impact
This development adds to the challenges faced by India’s pharmaceutical R&D sector, highlighting the high-risk nature of specialty drug development. As both companies reassess the compound’s future, the broader market will be watching how this impacts SPARC’s innovation roadmap and Sun Pharma’s specialty drug ambitions.
Competitor firms working on similar therapies may also be affected as investor sentiment turns cautious toward pipeline-stage assets in dermatology and autoimmune disorders.
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