SPARC Plunges After Late Stage Of Multiple Sclerosis Drug Fails To Meet Aim

Sun Pharma Advanced Research Company Ltd. fell the most in more than two years after the Dilip Shanghvi-led company said its late-stage studies of a multiple sclerosis drug yielded “no statistically significant results”.

The studies for Baclofen GRS for treating spasticity in multiple sclerosis patients did “not meet the end point”, the company said in an exchange filing. “We are disappointed with the outcomes… and will evaluate the data in greater detail to decide on our next steps,” Anil Raghavan, chief executive officer at SPARC, said in the filing.

Baclofen GRS was a key product in SPARC's pipeline but it is unlikely to be commercialised in the developed markets following the study, Morgan Stanley said in a note today. It will impact Sun Pharmaceutical Industries Ltd.'s efforts to build a specialty business in U.S., the brokerage added.

Other two drugs in SPARC's pipeline — Elepsia XL and Xelpros—have been delayed due to the inspections at its Halol plant, Morgan Stanley said.

Shares of SPARC fell 15.65 percent to Rs 328 apiece intraday compared to 0.31 percent gain in the NSE Pharma Index.

SPARC said Baclofen GRS met other end points such as spasm frequency and nighttime awakenings.

In 2006, SPARC was demerged from Sun Pharmaceuticals. The drugmaker is now SPARC's manufacturing/marketing partner on a product-by-product, merit-based selection process, according to Morgan Stanley.