SPARC stock falls by 5% after Parkinson's drug trial halt

Shares of Sun Pharma Advanced Research Company (SPARC) fell 5% to hit the lower circuit on April 10, Wednesday, after the Mumbai-based pharma company confirmed that it was discontinuing the Phase 2 study on Vodobatinib, a medicine for Parkinson's disease. The trial, named PROSEEK, was designed to evaluate the effectiveness of Vodobatinib compared to a placebo. However, the trial was stopped as it did not prove that Vodobatinib was more successful than a placebo in treating Parkinson's disease.

At 1:15 pm today, SPARC shares fell 5%, touching the lower circuit at ₹429.70 on the National Stock Exchange (NSE). So far in 2024, the stock has risen by 40% and 134% over the past 12 months.

SPARC has stated that it will continue to analyse the data collected during the PROSEEK trial. It did not specify the reasons for the trial's discontinuation or the potential implications of the findings on the development of Vodobatinib.

SPARC had nominated and enrolled 506 patients in a Global Phase-2b study in the PROSEEK trial as of October 2023. These patients were enrolled as the randomizers to investigate Phase 2 across 84 sites in the US, Europe, and India to study the efficacy of the oral therapy of Vodabatinib.

The company reported a 16.52% rise in the profit for third-quarter (Q3 FY24). On the other hand, the consolidated PAT (profit after tax) came at ₹2,523.75 crore for the quarter ended December 31, 2023, as against ₹2,166.01 crore in the same period last financial year. The board has declared an interim dividend of ₹8.50 per share. For Q3 FY24, external sales of API (Active Pharmaceutical Ingredients) were ₹466.1 crore, lower by 9.6%. The company aims to continue to focus on increasing API supply for captive consumption for key products.