SPARC Share Price Today: Why Did The Pharma Stocks Decline Nearly 20%?

The shares of Sun Pharma Advanced Research Company Limited (SPARC), a clinical-stage biopharmaceutical firm were trading at Rs 159.85 apiece on Wednesday.

SPARC, the research division of Sun Pharma, focuses on developing innovative therapeutics to improve standards of care for patients across the world, with a focus in the areas of oncology and immunology.

SPARC Shares Decline: Why Did The Stock Decline?

The shares of SPARC declined 19.98% to Rs 159.85 per share, after unsatisfactory results of the Phase 2 of a drug trial.

What Was The Drug Trial About?

The second phase of the trails for SPARC's experimental drug SCD-044, yielded unsatisfactory results.

SCD-044, which is also known as Vibozilimod, was being developed for the treatment of psoriasis and atopic dermatitis. The medication did not achieve the primary objectives in either trial, the firm said.

Consequently, SPARC declared the halt of any additional clinical progress for SCD-044.

Additionally, Sun Pharma as well as SPARC are now going to evaluate the future prospects of the compound.

The development also highlights a regression since SCD-044 was seen as one of the most promising assets in SPARC's specialty pipeline. In an exchange filing, the company said that both SOLARES PsO and SOLARES AD trials did not achieve their main endpoints, which was defined as a 75% enhancement in PASI (Psoriasis Area and Severity Index) or EASI (Eczema Area and Severity Index) scores at Week 16.

SPARC Q4 Results

Additionally, the fourth quarter results of SPARC announced a total earnings of Rs 20.96 crore, indicating a 38.8% rise from Rs 15.10 crore in the third quarter of this fiscal. However, its pre-tax loss increased to Rs 105.41 crore from Rs 79.44 crore  in the preceding quarter, showing a 32.7% fall in profitability.

The total expenditure for the quarter rose by 33.7% to Rs 126.37 crore, up from Rs 94.54 crore in the third quarter.

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