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Sun Pharma Discontinues Atopic Dermatitis Trials for SCD-044 After Phase 2 Misses Primary Endpoint June 04 2025Stock News

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Sun Pharma Ends SCD-044 Atopic Dermatitis Trials After Phase 2 Results Fall Short

In a notable development from India’s largest pharmaceutical company, Sun Pharmaceutical Industries Ltd has announced top-line results from its Phase 2 clinical trial of SCD-044, an experimental drug designed for treating inflammatory diseases. SCD-044 is a novel, orally bioavailable sphingosine-1-phosphate (S1P) receptor 1 agonist, aimed at modulating immune responses by affecting lymphocyte migration—a therapeutic approach that has shown promise in autoimmune and inflammatory conditions.

The company stated that while the molecule demonstrated a favorable safety profile, it did not meet the primary efficacy endpoint in the treatment of atopic dermatitis, a chronic inflammatory skin disorder. As a result, Sun Pharma has decided to discontinue further development of SCD-044 for this particular indication.

The Phase 2 study enrolled approximately 250 participants and was designed to assess the efficacy, safety, and tolerability of SCD-044 in adults suffering from moderate to severe atopic dermatitis. However, the data revealed that the drug failed to achieve statistically significant improvement over placebo on key clinical measures, leading the company to shelve further work in this indication.

Despite the setback, Sun Pharma clarified that the results do not reflect on the broader therapeutic potential of SCD-044, and the company may continue evaluating the molecule for other inflammatory conditions in the future. The decision to halt trials for atopic dermatitis is based purely on clinical evidence from this particular study.

S1P receptor modulators are an emerging class of drugs that have already seen success in treating multiple sclerosis and ulcerative colitis. The mechanism involves blocking the egress of lymphocytes from lymph nodes, thereby reducing immune-mediated inflammation. Sun Pharma’s SCD-044 was seen as a potential competitor in this evolving field, where other global pharmaceutical companies are already active.

While the trial outcome is undoubtedly a setback in the atopic dermatitis space, analysts believe that such trial discontinuations are part of the high-risk, high-reward nature of pharmaceutical innovation. It’s not uncommon for promising molecules to fail in later-stage clinical studies due to the complex biology of autoimmune diseases.

Sun Pharma continues to maintain a strong drug development pipeline, with multiple ongoing trials in dermatology, oncology, ophthalmology, and chronic diseases. Its R&D spend remains robust, accounting for over 5% of annual revenue—a reflection of the company’s long-term commitment to innovation-led growth.

The company has not disclosed further details about ongoing indications for SCD-044 beyond this study but may provide updates in future investor communications. In the meantime, Sun Pharma remains focused on its broader specialty and generics business across global markets.

This decision underscores the dynamic and evidence-driven approach Sun Pharma employs in its drug development strategy, where data transparency and scientific rigor guide progression or discontinuation.

Written by Indira Securities SEBI Registered with 30 plus years of experience in Stock Market!!!

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