Sun Pharma Advanced Research Company Ltd. (SPARC) has announced plans to reduce its workforce by around 40% as part of a broader restructuring aimed at streamlining operations and optimising costs. The impact will be most pronounced in the United States, where more than 80% of employees are expected to be laid off, according to company disclosures.

The clinical-stage research arm of Sun Pharmaceutical Industries is transitioning from a fully captive research and development model to a hybrid structure that relies more on outsourcing and strategic partnerships. As part of this shift, SPARC has already consolidated its laboratory infrastructure, reducing the number of research sites from four to two.

The company said the restructuring measures have resulted in annual cost savings of approximately $10 million. However, SPARC expects clinical development expenses to rise in the coming year as it advances its pipeline, which could also lead to an increase in fixed costs.

Management indicated that the strategic overhaul is intended to create a leaner organisation while continuing to invest selectively in key research programmes. The company aims to balance tighter cost control with sustained progress across its innovation pipeline.

SPARC currently has outstanding debt of about $46 million, and the restructuring is designed to improve financial sustainability while supporting long-term growth ambitions.

Founded as a demerged entity from Sun Pharma to focus on novel drug discovery and advanced delivery technologies, SPARC continues to develop a portfolio of biologics and small-molecule assets across multiple therapeutic areas.