85 employees at Sun Pharma terminated as company shuts 2 units in Vadodara

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26 Aug, 2025 12:21

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Sun Pharma, India's largest drug maker said on August 2 that it will be discontinuing operations at two Clinical Pharmacology Units located at Tandalja and Akota in Vadodara, to cut costs.

Sun Pharma didn't disclose how many employees were impacted as part of the restructuring of clinical research operations.

However, Moneycontrol has learnt that at least 85 employees were given pink slips, with three months advance salary as severance package.

"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," Sun Pharma said in an email statement to Moneycontrol.

"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 statement read.

The company said the bio-equivalence studies from these centers will be transferred to other facilities. The company has another CPU in Gurugram, Haryana.

"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 company noted.

Sun Pharma performs bio-equivalence studies at its in-house CPUs to facilitate the introduction of generics into the national and international markets.

Sun Pharma is trying to optimise operational costs due to pricing pressure and moderating growth in US.

Managing Director and promoter of Sun Pharma Dilip Shanghvi took home Re 1 as salary in FY19. The pharma major's net profit grew 27 percent YoY to Rs 2,665.4 crore in FY19, but it was against a low base.

After consistent YoY growth from FY11 to FY15, its financial performance has been volatile in the last four years.