Sun Pharma shuts down two R&D units in Vadodara; lays off some employees

Sun Pharmaceutical Industries said on Friday that it would be discontinuing operations at research and development centres in Vaodara - Tandalja and Akota. The company has also laid off some employees working at the two units. It, however, did not disclose the exact number. Market sources peg the number at 85 personnel who have been terminated and given three months salary in advance. A Sun Pharma spokesperson said, "While we continue to make investments in our R&D operations, we also constantly evaluate our resources and future capacity requirements to bring in efficiencies in cost and processes. To ensure optimal utilisation of Clinical Pharmacology Units (CPUs) that conduct bio-equivalence studies, we are discontinuing operations at two centers at Tandalja & Akota, Vadodara."

The company also added that the bio-equivalence studies from these centres will be transferred to its other facilities. "We are offering full support to the affected employees and helping them with outplacement services. We are intimating all regulatory authorities and ensuring that we comply with all regulations," the spokesperson added. In FY19, the company's R&D spend (as a percentage of sales) had come down to 6.9 per cent from 8.6 per cent in the previous fiscal (FY18). The company is working on optimising costs as pricing pressure in the US grows.