Sun Pharma announced results for its clinical trial program SCD-044 which failed to meet the end point in a Phase-2 trial and is discontinuing the program. While the stock of Sun Pharma reacted modestly to the news (declined by -0.6 per cent), the stock of Sun Pharma Advanced Research or SPARC, from where the molecule was inlicensed, declined by 18 per cent.
SCD-044 was under trials for two auto-immune indications in a Phase-2 trial; atopic dermatitis and psoriasis. The molecule had cleared Phase-1 safety evaluation before the Phase-2 trial and was in licensed to its parent company Sun Pharma in 2020. The two indications were quite lucrative with several blockbuster drugs of big pharma already active in the space. The study did not show any safety concerns but failed the endpoint of a 75 per cent improvement in PASI score (Psoriasis Area and Severity Index) and EASI (Eczema Area and Severity Index) score at week 16.
SPARC, the R&D arm of Sun Pharma, had four listed programs and SCD-044 was one of them which underlines the sharp stock reaction. The other programs include SCO-088 for resistant Chronic Myeloid Leukemia (CML) which is Phase-2 and is the most advanced. SCD-153 for Alopecia Areata in early Phase-1 and an anti-drug conjugate (that pairs with a cancer honing molecule and delivers toxin) is in early development stage.
Sun Pharma’s prospects in the vast field of derma-oncology has been impacted but not curtailed. Its blockbuster product Ilumya, which generated more than $680 million in FY25 from plaque psoriasis, is currently under Phase-3 evaluation for psoriatic arthritis.
There are other clinical trials for Sun Pharma that can sustain the momentum. But with one of four and the most advanced and lucrative program discontinued, this is a sharp blow for SPARC.
SPARC, a research firm, has revenues in form of research funds. In FY25, it reported revenue of ₹71 crore. It is currently unprofitable, and profitability will kick in only when successful product options bring in licensing or royalty income. Hence it cannot be measured on traditional metrics of PE or EV/EBITDA.
Published on June 4, 2025
Source link