SPARC Share Price Plunges 19% After Psoriasis Drug Trial Fails

Market Performance

SPARC (Sun Pharma Advanced Research Company) shares crashed 19% on June 4, hitting ₹158 per share, after its psoriasis drug SCD-044 (Vibozilimod) failed in Phase 2 trials. The steep decline reflects investor disappointment as the drug was a key asset in SPARC’s pipeline.

Why Did SPARC Shares Drop?

The company announced that SCD-044 did not meet primary goals in two critical trials:

• SOLARES PsO (for psoriasis)
• SOLARES AD (for atopic dermatitis)

The drug failed to demonstrate a 75% improvement in Psoriasis Area and Severity Index and EASI (Eczema Area and Severity Index) scores after 16 weeks. As a result, SPARC has decided to halt further development of SCD-044.

Financial Snapshot (Q4 FY25)

Here’s a quick look at SPARC’s recent financial performance:

Key Takeaways:

• Income rose 38.8% QoQ, but losses widened.
• Expenses surged 33.7%, impacting profitability.

About SPARC

SPARC is a biopharmaceutical research arm of Sun Pharma, India’s largest drugmaker. It focuses on innovative therapies in:

• Oncology (Cancer treatments)
• Neurodegenerative diseases (e.g., Alzheimer’s, Parkinson’s)
• Inflammatory disorders (e.g., psoriasis, atopic dermatitis)

What’s Next for SPARC?

The company will reassess SCD-044’s future, but the trial failure is a significant setback. 

Summary

• SPARC shares fell 19% after the failure of the psoriasis drug trial.
• SCD-044 did not meet key effectiveness targets.
• Financials show rising income but higher losses.
• The company will review the next steps for the drug.

This development underscores the high-risk nature of drug research, where trial outcomes can have a significant impact on stock performance. Stay tuned for further updates on SPARC’s future projects.