Sun Pharma Advanced Research Tumbles Over 18%: Here’s What Spooked Investors

SPARC shares price: Sun Pharma Advanced Research Company stocks experienced a sharp drop of over 18% on Wednesday after its experimental drug SCD-044, which was being tested to treat moderate to severe psoriasis and atopic dermatitis (eczema), failed to deliver the desired results

At 12:10 pm, SPARC shares were trading at ₹160.80, down by more than 17% on the National Stock Exchange. So far this year, the shares have dropped over 20%, dropping from ₹200 price level to ₹160.

As per the exchange filing, the drug failed to help enough patients reach the expected level of improvement in the Phase 2 clinical trial for psoriasis. The study did not meet its primary endpoint of 75% improvement in PASI (Psoriasis Area and Severity Index) score at Week 16.

"The study did not meet its primary endpoint of 75% improvement in PASI (Psoriasis Area and Severity Index) score at Week 16. The Phase 2 randomised, double-blind, placebo-controlled study of SCD-044 included 263 people living with moderate to severe plaque psoriasis," the company release read.

Meanwhile, Sun Pharma's share price also tumbled on D-street. The shares of the pharmaceutical firm were trading at ₹1,657.50, down by 0.60% on the NSE.

"Sun Pharma is also discontinuing studies of SCD-044 for atopic dermatitis after top-line results from a Phase 2 clinical trial did not meet the primary objective of 75% improvement in EASI (Eczema Area and Severity Index) score (≥EASI75) at Week 16. The Phase 2 atopic dermatitis study of SCD-044 included 250 people and compared three different dosages of SCD-044 with placebo," the company release added.

While there were no safety or tolerability issues reported with SCD-044 in either the plaque psoriasis or atopic dermatitis studies, Sun Pharma has decided to discontinue all its clinical trials of the drug.

Sun Pharma shares

In the 5 trading sessions, the shares of the pharma company have struggled to remain in the green territory. Last month alone, the shares dropped over 9.76%. Currently, the shares are trading 15% below its all-time-high price level of ₹1960.

On an annual basis, the shares of the pharma company witnessed a 15% rise on the bourses.