Amid Debt Pressure, Sun Pharma's Research Arm SPARC Plans 40% Workforce Reduction
The latest restructuring is expected to result in annual cost savings of approximately USD 10 million.
Mumbai: Sun Pharma Advanced Research Company Ltd. (SPARC), the clinical-stage research arm of Sun Pharmaceutical Industries, has announced a decision to reduce its workforce by around 40% as part of a major restructuring exercise aimed at cutting costs and realigning its operating model.
The move is expected to largely impact its US operations, where over 80% of the employees are likely to be affected.
The company stated that the workforce rationalisation is part of a shift from a fully captive research model to a hybrid operating structure, with the objective of improving efficiency and strengthening long-term growth prospects. As part of earlier optimisation measures, SPARC had already consolidated its laboratory operations from four locations to two. The latest restructuring is expected to result in annual cost savings of approximately $10 million.
SPARC currently has an outstanding debt of about $46 million, which has added pressure on its financial position and prompted the company to re-evaluate its cost structure. The company focuses on developing novel therapeutic molecules and advanced drug delivery systems, which are typically out-licensed to global pharmaceutical partners at various stages of development.
In addition to the workforce reduction, SPARC is in the process of finalising its resourcing strategy for FY27 and FY28, including plans related to promoter-supported debt and utilisation of internal cash accruals. The company said these measures are intended to balance ongoing clinical development activities with financial discipline.
According to a recent media report in The Economic Times, the restructuring reflects SPARC’s broader efforts to streamline operations and adapt its business model in response to evolving market conditions and funding requirements.
Despite the workforce reduction, the company reiterated its focus on innovation-led research and selective advancement of its development pipeline, while continuing to explore strategic partnerships to support future growth.
