Sun Pharma Advanced Research Company (SPARC) Status Update summary

Strategic and operational priorities

• Portfolio refocused on oncology and immunology, with SCD-153 and SBO-154 as anchor assets.

• Shift to a flexible business model, emphasizing early partnerships, licensing, and new company creation for asset advancement.

• Emphasis on short-term cash-generating opportunities and cost optimization, including headcount reduction and use of India-based clinical resources.

• Continued review of leveraging discovery and translational capabilities in a services model.

• Key execution priorities for the next 24 months include advancing clinical milestones for Vodobatinib, Sezaby, SBO-154, SCD-153, and Vibozilimod.

Key program updates and pipeline focus

• SCD-153, a topical itaconate analog, showed dose-dependent hair growth and reduced pathogenic T-cell infiltration in preclinical models; phase 1 in healthy volunteers showed good safety.

• Phase 1b study in alopecia areata patients to start in Q1 next financial year, with global phase 2b planned for Q4 FY27.

• SBO-154, an anti-MUC1 ADC, demonstrated strong preclinical efficacy and favorable toxicology; IND filing expected by end of Q4 FY25, with phase 1 to follow.

• SBO-155 (SCO-155), a PSMA-targeted small molecule drug conjugate, advanced via Thila/Tiller Therapeutics NewCo with UCSF, enabling external funding and risk mitigation.

• Additional undisclosed programs in early development, with updates to be shared as appropriate.

Financial and cash flow outlook

• Multiple short-term cash catalysts identified: Sezaby exclusivity enforcement, pediatric rare disease voucher litigation, Vodobatinib CML licensing, PDP-716 relaunch, and phase 2 data milestones.

• Current cash and debt access expected to last until early next year or May 2025, with further funding decisions based on milestone outcomes.

• Ongoing litigation for pediatric rare disease voucher, with court opinion expected in Q4 FY25; potential value exceeds $150 million.

• Sezaby orphan drug exclusivity enforcement ongoing, with FDA engagement and supply chain strengthening underway.

• Cost optimization and cash burn reduction are prioritized, with clinical capability and execution costs targeted for further efficiency.