This Small-cap Pharma Stock, engaged in the research and development of innovative pharmaceutical products, focusing on therapies for unmet medical needs, hit a 20 percent lower circuit after the company’s key psoriasis drug, SCD-044, failed to get the expected result.
With a market capitalization of Rs. 5,172.87 crores, the shares of Sun Pharma Advanced Research Company Limited hit a 20 percent lower circuit of Rs. 156.50 per share on Wednesday, down from its previous closing price of Rs. 195.60 per share. Since then, the stock has retreated and is currently trading at Rs. 159.40 per equity share.
What is the news?
Sun Pharma Advanced Research Company Limited (SPARC) has announced results from its drug SCD-044, also known as Vibozilimod, did not succeed in Phase 2 trials for treating psoriasis and atopic dermatitis. The drug failed to meet the main goals of the studies, so the company has decided to stop further development; no more clinical trials are being planned.
Both Sun Pharma and SPARC will now decide what to do next with the compound. This is seen as a setback because SCD-044 was considered an important drug in Sun Pharma’s specialty pipeline.
There was a previous update regarding the company’s Halol facility, which mentioned that the USFDA has conducted a surprise inspection at the Halol plant, one of Sun Pharma’s largest manufacturing sites. The facility is already under an import alert and was last inspected in May 2022, as per CNBC-TV18.
Sun Pharma Advanced Research Company Limited (SPARC) was established in 2007 following a demerger from Sun Pharmaceutical Industries Limited, one of India’s largest pharmaceutical firms. The company is a clinical-stage biopharmaceutical company focused on developing innovative therapeutics, primarily in the fields of oncology and immunology.
The company is working on new drugs for different health issues. They have a BCR-ABL Inhibitor in Phase 2 for treating Refractory Chronic Myeloid Leukemia (CML). An Anti-MUC-1 ADC is in the preclinical stage for multiple tumors. A Selective S1PR1 Agonist in Phase 2 targets Psoriasis and Atopic Dermatitis, and an undisclosed drug in Phase 1 is for Alopecia Areata.
Coming into financial highlights, Sun Pharma Advanced Research Company Limited’s revenue has increased from Rs. 17 crore in Q4 FY24 to Rs. 27 crore in Q4 FY25, which has grown by 58.82 percent. The net loss of the company has reduced from Rs. 107 crore in Q4 FY24 to Rs. 61 crore in Q4 FY25.
Written By – Nikhil Naik
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