Sun Pharma Advanced Research Shares Fall To Nearly One-Month Low On Discontinuing Psoriasis Drug

Shares of Sun Pharma Advanced Research fell to a nearly one-month low on Wednesday as it announced the discontinuation of the SCD-044 drug with no further plans for clinical trials.

Additionally, the shares of Sun Pharma also fell as much as 1.11% on Wednesday.

The research company announced results from its Phase 2 trials of the SCD-044 drug on Tuesday. Sun Pharma disclosed that the drug did not meet primary endpoints in either study and that it had no plans to continue the trials.

The SCD-044, or Vibozilimod, was being tested in the treatment of psoriasis and atopic dermatitis.

Both Sun Pharma and SPARC will now assess the next steps for the compound.

This will impact the company, as the drug was considered to be one of the key assets in the company's speciality pipeline.

The company recorded a consolidated net loss of Rs 60.16 crore for the quarter ended March, compared to a loss of Rs 105.41 crore in the same quarter of the previous fiscal year.

Revenue increased by 64.2% year-on-year for the three months ended March, reaching Rs 27.19 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose to Rs 24.43 crore. The Ebitda margin expanded to 89.8%.

The shares of Sun Pharma Advanced Research fell as much as 20% to Rs 156.14 apiece, the lowest level since May 16. It pared losses to trade 17.93% lower at Rs 160.19 apiece, as of 10:21 a.m. This compares to a 0.19% advance in the NSE Nifty 50 Index.

Sun Pharma Advanced Research has fallen 20.01% in the last 12 months and 18.88% year-to-date. Total traded volume so far in the day stood at 1.10 times its 30-day average. The relative strength index was at 59.22.