SPARC share price drops sharply after drug trial setback

One of the most anticipated drugs in the Sun Pharma Advanced Research Company (SPARC) pipeline just hit a wall.

SPARC shares crashed nearly 20% on June 4, 2025, after the company reported that its psoriasis drug SCD-044, also known as Vibozilimod, failed to meet its trial goals. The stock opened strong at ₹186 but slipped quickly to ₹156.50 on the BSE. For a company banking on this experimental drug, the result wasn’t just disappointing, it was a game-changer.

Let’s break down what happened, what it means for investors, and where SPARC stands now.

The drug that sparked the crash

SCD-044 was in Phase 2 trials for two common skin conditions:

• Psoriasis leads to scaly, raised patches on the skin
  
• Atopic dermatitis (or eczema) causes red, itchy inflammation
  

SPARC and its parent company, Sun Pharma, were testing if the drug could achieve a 75% improvement in symptoms, measured through two standard scales called PASI and EASI, within 16 weeks.

But the trials failed to meet those goals. So SPARC announced that it would discontinue further development of the drug altogether.

This came as a blow because SCD-044 was seen as one of the more promising candidates in SPARC’s pipeline. Investors reacted brutally, leading to the stock hitting a 20% lower circuit during the session.

Also read: NBCC share price rises after robust Q4FY25 results

SPARC Q4FY25 results

To understand how this affects SPARC’s financial health, here’s a quick look at the company’s Q4 FY25 numbers:

Metric	Q3 FY25 (₹ crore)	Q4 FY25 (₹ crore)	Change
Total Income	15.10	20.96	+38.8%
Total Expenses	94.54	126.37	+33.7%
Loss Before Tax	79.44	105.41	+32.7%

Even though income grew, the company is still posting higher losses. The cost of drug development and trials is high, and when a major bet like SCD-044 doesn’t pay off, the impact is both financial and emotional for investors.

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SPARC share price movement

Over the past year, the SPARC share price has gone through some wild swings. It peaked near ₹257 at one point and had already been trying to recover from a previous 76% fall over the past 47 weeks. The failed trial halted that recovery in its tracks.

So, if you’re looking at SPARC stock analysis, understand that this is not just about one bad day. This event signals a larger structural breakdown on the charts.

Sun Pharma’s FDA inspection adds to the pressure

While SPARC deals with its trial failure, its parent company, Sun Pharma, is under fresh scrutiny. The FDA launched a surprise inspection at its Halol facility, one of Sun Pharma’s major manufacturing units.

The Halol plant has already been under an import alert since 2022. Now, with three FDA inspectors conducting the surprise audit, market watchers are worried about further regulatory issues.

This doesn’t directly impact SPARC’s research operations, but it adds pressure to overall investor confidence, especially since both entities are closely linked.

You may also read: Nykaa Q4FY25 result analysis

Where does SPARC go from here?

SCD-044 is done. But that doesn’t mean SPARC has no future.

The company is still focused on innovation in key areas like oncology, neurodegenerative diseases, and inflammatory disorders. While the immediate blow is harsh, the company has other drugs in development.

Sun Pharma itself continues to invest heavily in R&D, with about ₹8,166 crore spent in FY25, about 6.2% of its sales. This indicates continued support for long-term research and potential new products from SPARC’s pipeline.

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Conclusion

If you’re tracking the SPARC share price, this isn’t a time to act emotionally. Biotech stocks will always be volatile trial outcomes can make or break them.

Stay updated with SPARC share news, follow expert SPARC stock analysis, and make sure your decisions align with your investment goals and risk appetite.

The fall may have been steep, but whether it’s the end of the road or just a speed bump, that depends on what SPARC does next.