Sun Pharma Advanced Research Company (SPARC) Status Update summary

Strategic Priorities and Portfolio Focus

• Portfolio refocused on oncology and immunology, with SCD-153 and SBO-154 as anchor assets, deprioritizing neurodegeneration after PROSEEK results.

• Emphasis on early partnering, flexible business models, and NewCo formations to drive near-term cash events and cost efficiency.

• Short-term execution priorities include cash-generating milestones, cost optimization, and resource reallocation to high-priority programs.

• Organization restructuring targets a 21% manpower reduction and increased India-based clinical operations to extend runway to May 2025.

Key Program Updates

• SCD-153, a topical itaconate analog for alopecia areata and vitiligo, showed dose-dependent efficacy and safety in preclinical and phase 1 studies; phase 1b in patients to start in FY25.

• SBO-154, an anti-MUC1 ADC, demonstrated strong preclinical efficacy and favorable safety in NHP studies; IND filing planned for Q4 FY25, with phase 1 to follow.

• SBO-155 (SCO-155), a PSMA-targeted small molecule drug conjugate, advanced via Tiller Therapeutics NewCo with UCSF, showing selective cytotoxicity in prostate cancer models.

• Vibozilimod Phase 2 studies in atopic dermatitis and psoriasis completed enrollment, with topline results expected in FY25 and FY26.

Financial and Operational Status

• Multiple short-term cash catalysts identified: Sezaby exclusivity and PRV litigation, Vodobatinib CML partnering, PDP-716 relaunch, and milestone income from partnered assets.

• Near-term cash-generating milestones include licensing deals, NDA approvals, and potential resolution of Sezaby's PRDV litigation, which could yield over $100 million.

• Efforts ongoing to enforce Sezaby's orphan drug exclusivity and remove unapproved phenobarbital injectable formulations from the market.

• Vodobatinib's Phase 3 design for CML agreed with USFDA, with licensing outreach underway and study initiation readiness achieved.

• Current cash and debt access expected to last until early next year or May 2025, pending milestone outcomes.