Global Pharmaceutical Industry
2022 witnessed the global pharmaceutical industry standing at an
interesting cross road, characterized by a disruptive marketplace and greater patient
empowerment. Operating against the backdrop of a looming global recession, the global
pharma players witnessed challenges such as high inflation, talent shortages, rising
capital costs, challenging foreign exchange impacts, and pressures on consumer spending.
The biopharmaceutical industry showed signs of entering a period of
operational stability in the post-pandemic era after the disruptions of the previous 3
years. The outlook for global spending on medicines has become clearer as the
uncertainties during COVID give way to more predictable challenges. The life sciences
sector, encompassing pharmaceutical, biotech, and med-tech industries, is experiencing
robust growth and to sustain this growth trajectory, companies are reorienting their
portfolio strategies by engaging in acquisitions, shedding non-core assets, increasing
Research & Development (R&D) investments, and adopting digital and data
technologies. However, several challenges remain, including intense competition, evolving
regulatory frameworks, pricing pressures, and rising expectations from patients and
healthcare providers for improved treatments and experiences. Moreover, these challenges
must be navigated amidst broader geopolitical and economic uncertainties.
Pharmaceutical developers faced a challenging year in 2022 as the
public markets continued to decline, and investors shifted to safer investments. This had
a more severe impact on smaller companies than larger ones, and the biotech venture world
also su_ered due to the precipitous decline in the initial public offering (IPO) market
(Fig. 1) resulting in significantly lower overall investments compared to 2020 and 20211.
The prevailing economic uncertainty and geopolitical concerns do not bode well for a
recovery in either private or public financing in 2023. In this context, acquirers are
expected to take advantage of the depressed valuations and make opportunistic moves. Many
hope for a surge in mergers and acquisitions in the coming months, as the prolonged slump
in valuations forces sellers to consider offers. However, buyers are likely to face
concerns about economic growth and the evolving regulatory environment. The changes
announced for the accelerated approval pathway are likely to restrict approvals in 2023.
In 2023, the biopharma industry must demonstrate clinical successes to
reassure investors about the sectors potential, despite its inherent risks. Additionally,
investors will be closely
1. Floating biotechs prompt tiny sparks of hope, Evaluate Vantage;
April 06, 2023 monitoring the gene therapy and gene editing fields to assess their
maturity and regulatory acceptance. The cancer field, which has received significant
funding in the last five years, needs to showcase its ability to deliver new mechanisms to
maintain its momentum.
Fig. 1: Biotech IPOs by quarter on western exchanges1
Life sciences companies are investing in various platforms such as gene
and cell therapies, new messenger ribonucleic acid (mRNA) platforms, expanding the
indications of existing biologics platforms, developing novel medicines such as antibody
drug conjugates (ADCs), and enhancing the effectiveness of existing medications by
exploring different routes of administration, or improving diagnostics. Companies
increasingly realize that they cannot work in isolation and are more open to collaborating
with other stakeholders in the healthcare ecosystem to share knowledge, expertise, and
resources.
Meanwhile, governments worldwide are tightening regulations and seeking
greater transparency in drug reviews, approvals, pricing, and reimbursement. This pressure
extends not only to pharmaceutical and biotech manufacturers but also to other
stakeholders, such as pharmacy benefit managers (PBMs) in the US. To comply with these
regulations, while meeting patient needs and generating shareholder returns, life sciences
organizations are seeking new strategies and approaches. They are exploring innovative
pricing models, improving their clinical trial designs, and partnering with PBMs and other
payers to improve patient access and a_ordability. Through collaboration and innovation,
life sciences companies are striving to create value for all stakeholders while navigating
a complex regulatory and pricing environment.
Medicine usage and global spending are expected to rebound by 2024 to
pre-pandemic growth rates, but uncertainties are expected to persist for couple of years.
These uncertainties include the emergence of new viral variants of COVID-19, the rollout
of COVID-19 booster shots, and economic pressures due to inflation and geopolitical
conflicts.
The volume of drug usage is projected to increase by 1.6% until 2027,
driven by Asia-Pacific, India, Latin America, Africa/Middle East, and China, which are
expected to exceed global volume growth. Meanwhile, higher-income countries in Western
Europe, North America, Japan, and Eastern Europe are projected to have slower growth rates
of 0.1% to 0.5% until 20272 (Fig. 2).
Fig. 2: Historical and projected use of medicine by region, 2012-2027,
Defined Daily Doses (DDD) in $Bn2
The global medicine market — using invoice price levels — is
expected to grow at 3-6% CAGR (Compound Annual Growth Rate) through 2027, reaching about
$1.9Tn in total market size (Fig. 3). The U.S. market, on a net price basis, is forecast
to range from a shrinkage by 1% to growth by a modest 2% CAGR over the next five years,
down from 4% CAGR for the past five years. Spending in Europe is expected to increase by
$59Bn through 2027, and spending growth in China is expected to slow down2.
The projected reduction in the growth of spending for medicines can be
attributed to the historic global shifts in drug pricing. Pharmaceutical reimbursement
policies are colliding with intensifying competition to boost market access. Life sciences
companies are responding to these commercial pressures through dynamic pricing techniques.
In the US, life sciences leaders are developing new commercial strategies to address the
pricing impact from the 2022 Inflation Reduction Act (IRA), which includes provisions
aimed at lowering out-of-pocket costs for patients. These developments are reshaping
tactics in the life science sector as companies reposition pricing in an increasingly
competitive landscape. Across non-US markets, there is also a recognition of the
increasing pressure on pricing and equitable access to treatments.
Fig. 3: The global medicine market size and growth2
2022 saw a growing share of first-in-class medicines and continued
growth in number of specialty medicine launches. While the value and volume of the market
grew, 2022 saw fewer approvals of new drugs by the U.S. Food and Drug Administration
(USFDA). A total of 37 new drugs were approved in 2022, compared to 50 in 2021. When
compared to the approvals during the previous five years, 2022 marked one of the lowest
numbers of new drug approvals by USFDA3 (Fig. 4).
Fig. 4: USFDA approvals of new drugs3
The trend of expedited reviews for newly approved drugs continued in
2022, with 77% of the launches designated as priority, fast track, breakthrough, or
granted accelerated approvals. Priority review and breakthrough designations increased,
while fast track and accelerated approvals decreased. Over the past five years, there has
been a 15% increase in the use of any expedited development or review mechanism. Out of
the 37 newly approved drugs, 22 were small molecules and 15 were biologics, with oncology
drugs and autoimmune therapies leading with 11 and 7 approvals respectively. Twenty-three
of the approved drugs are considered first-in-class therapies3.
Fig. 5: 2022 USFDA approvals by drug class3
Drug developers are rapidly shifting towards the development of drugs
with complex modalities. As a result, global regulatory agencies are re-evaluating their
procedures, protocols, and requirements to accommodate system-wide scientific, technical,
and policy changes.
Some of the notable changes observed in the regulations by USFDA
include
1. Project Optimus: Initiative driven by the USFDA Oncology Center of
Excellence to reform dose selection and optimization in oncology trials prior to initial
regulatory approval with the goal of minimizing patient exposure to supra-therapeutic
doses.
2. ScrutinyofAcceleratedApproval(AA)pathway:Confirmatory trials
following AA face significant delays and their failure to confirm benefit in larger
randomized clinical trials (RCTs) led to Congress enacting the Consolidated Appropriations
Act 2023 for AA pathway reform. Under the regulation, USFDA mandates that the confirmatory
trial should be ‘Well under way if not fully enrolled by the time of
accelerated approval action.
3. Biomarker led approvals: USFDA approved aducanumab and lecanemab as
disease modifying agents for treatment of Alzheimers disease based on biomarkers
used in the study. The USFDA has published guidance, which suggests that USFDA may approve
drugs for serious conditions where there is an unmet medical need and a drug is shown to
have an effect on a surrogate endpoint that is reasonably likely to predict a clinical
benefit to patients.
Biopharma Industry Trends
Despite the challenges, the industrys research and development
pipeline continues to expand, with 6,147 products in active development from Phase 1 to
regulatory submission. This represents a 49% growth since 2017 and a 2% increase in the
last two years4.
Emerging biopharma companies (EBPs) i.e., companies, which have R&D
spending of less than $200Mn per year and less than $500Mn in annual sales, are
responsible for two-thirds of the molecules in the R&D pipeline. This is a
considerable increase from little over half in 2017 and one-third in 2002. The rise of
EBPs is particularly pronounced in China, whose share now exceeds that of Europe.
Meanwhile, U.S. headquartered companies account for nearly half of EBP development, while
Europe and Japan have seen declining shares of the EBP pipeline over the last decade4.
Oncology comprises 38% or 2,331 products in the pipeline, growing at
10.5% CAGR over the last five years. Non-rare cancer clinical development pipeline grew 7%
in 2022, whereas rare cancer development has plateaued or slightly declined, indicating a
potential shift in the near future away from rare cancers. Next-generation biotherapeutics
are being investigated for hematological cancers, accounting for 28% of the pipeline.
Immuno-oncologics are tapering off, potentially indicating a switch to newer targeted
molecules. Bispecific antibody development for cancer treatment has grown significantly
and represents 7% of both hemato-oncology and solid tumor pipelines.4
Neurology remains a critical area in drug development, with 699
products currently under investigation to address neurodegenerative, neuromuscular, and
psychiatric disorders. Alzheimers and Parkinsons diseases have been the primary focus of
ongoing research, with 127 and 96 products under investigation, respectively. Small
molecule products dominate the neurology pipeline, accounting for 72% of the pipeline,
while next-generation biotherapeutics such as cell and gene therapies comprise 11% and
show potential to revolutionize treatment for these debilitating diseases4.
Fig. 7: Number of neurology pipeline products in 2022 by disease and
therapy type4
Productivity Enablers of Biopharma Industry
While technological advancements and data improvements have increased
scientific productivity, there are also trade-o_ effects that impact complexity, timing,
and the likelihood of success.
On the clinical front, novel trial designs, such as umbrella, basket,
master, and adaptive protocols, are becoming more prevalent in the industry trial
pipeline. In 2022, they accounted for 17% of new and planned trial starts, with 1,068
trials incorporating at least one aspect of a novel trial design. In infectious disease
trials, there has been a notable surge in the use of these designs over the last three
years, with COVID-19 trials utilizing master protocols and adaptive structures for
improved e_iciency and decision-making4.
Biomarkers, and decentralized methods are delivering initial
productivity gains, with long-term innovations such as Real-World Evidence (RWE),
Artificial Intelligence/Machine Learning (AI/ML), and trial simulations promising
significant future gains as they mature in the pipeline.
In recent years, every industry including pharma, has realized the
power of data and how it can help the industry grow and get closer to the end-users. The
increasing usage of real-time data, artificial intelligence (AI), and machine learning
(ML) in drug development is accelerating the discovery and development of new drugs,
improving patient outcomes, as well as reducing costs.
AI has the potential to transform drug discovery by extracting concepts
and relationships from data. It can also cross-reference published scientific literature
with alternative information sources, such as clinical trials information, conference
abstracts, public data and unpublished datasets. Real-time data and AI offer significant
benefits to the pharmaceutical industry.
Biopharmaceutical companies are applying AI/ML technology leveraging
the growing chemical, biological and patient datasets to accelerate and improve target and
drug selection across the entire drug discovery continuum. AI target selection by
interrogating clinical, experimental, and ‘omics data to better characterize
disease states and identify novel ‘druggable targets has been used in several
compounds under development.
Products optimizing drug design by analyzing complex datasets,
including molecule structure, molecular dynamics, genome, and combinatorial drug screening
databases forms the largest area utilizing AI/ML. The use of AI/ML to deliver insight from
a range of patient ‘omics, biometrics and previous trial data to specifically
optimize drug discovery through precision patient targeting is a focus for several sponsor
companies. Finally, trial simulation using AI/ML technologies on deep target, drug, and
patient datasets is enabling optimized clinical trial design.
In sum, the global innovative pharmaceutical market remains an
attractive opportunity, while remaining resilient by responding to rapidly changing
drivers of productivity.
Indian Pharmaceutical Industry
The Indian pharma industry has been rightfully recognised as ‘the
pharmacy of the world, as it consistently supplied medicines to over 200 nations
worldwide during the pandemic. However, the overall growth of the industry was restricted
as other chronic diseases got side-lined due to the pandemic. While the Indian pharma
industry leads in volume globally, it is still on the margins in creating value through
innovative technologies such as new molecular or biological entities, cell and gene
therapy, and precision medicines. The industry has shown unwavering commitment to support
the countrys healthcare needs, while focusing on opportunities to enhance its
footprint across the world.
The Indian pharmaceutical industry is estimated to reach $65 Bn by 2024
and touch $130 Bn in value by the end of 2030 – growing at around 11-12% till 20305.
As India strives to reach a higher level of advancement and gain
international recognition in the pharmaceutical industry, the government policies and
actions will likely be the fundamental growth drivers of this sector.
The Union Budget for FY23 announced some important priority proposals
that include:
• The total allocation for health in the budget stood at 2.1% of
the gross domestic product (GDP) in FY23 compared to 1.4% of the GDP in FY19. The
Government increased its allocation to the health sector by INR 2,954 crore ($387.1 Mn),
from INR 86,200.65 crore ($11.3 Bn) in the last fiscal year to INR 89,155 crore ($11.7 Bn)
in the current fiscal year, i.e., 2023-24.
• The announcement of 157 new nursing colleges being set up in
core locations, to complement the existing 157 medical colleges that have been established
since 2014.
• INR 3,201 crore ($419.2 Mn) has been set aside for research and
INR 83,000 crore ($10.86 Bn) has been allocated for the Ministry of Health and Family
Welfare.
• INR 37,000 crore ($4.83 Bn) has been allocated to the National
Health Mission.
To achieve value leadership and overcome global pricing pressures and
inflation, the Indian pharmaceutical sector must
prioritizeinnovationandreinvention.Itistransitioningfromvolume to value leadership,
becoming a technology- and innovation-driven powerhouse. The countrys changing
epidemiological profile and growing economy make it a promising candidate for future
R&D and manufacturing in the pharmaceutical industry.
Opportunities
1. The Central Government has been extending legislative support as
well as rolling out several initiatives, in the form of the Production Linked Incentive
(PLI) scheme and bulk drugs park scheme, to reduce the domestic pharma sectors
reliance on China and encourage local production. With the successful implementation of
these schemes, it is likely that the Indian pharma industry will capitalise on the
enhanced Government impetus going forward. These schemes are projected to boost the API
industrys growth and lower the domestic pharma industrys reliance on China by
25-30% over the next 4–5 years.
2. The Indian pharma industry is already an established player in the
manufacturing of generic drugs. However, in recent years, the industrys focus on the
research-based formulations is anticipated to drive growth and generate new revenue
streams.
Challenges
1. For a nation that seeks to retain the mantle of ‘pharmacy of
the world, India lacks regulatory framework compared to global standards. The
current Indian regulatory framework is traditionally geared towards safety and e_icacy.
However, it should also differentiate in favour of innovation. The Drug Controller General
of India in the Central Drug Standard Control Organization (CDSCO) is the licensing
authority, but there are multiple agencies with different mandates and expertise that a
pharma innovator must navigate within India to obtain approval. A revamp of the
countrys pharmaceutical regulatory norms is expected to not only expedite the drug
approval process but also promote innovation.
2. With evolving automation technologies it is likely that the
conventional, stringent chain of processes will be disrupted, and the operations are going
to become even more streamlined. However, the lack of private investment in the Indian
pharma industry has led to the slow adoption of advanced technologies in this sector.
3. Cyberthreats and data security are areas of concern for the Indian
pharma industry. The potential risks of data breaches may make the industry vulnerable to
external threats.
4. India may not have the talent to cover the whole range of
pharmaceutical products, from the inception of the drug to its release onto the market. A
disconnect between academia and industry may result in students missing out on
market-relevant skills and knowledge. The Government may support this by funding research
and innovation activities at the academic institutes.
In sum, India is shifting from a traditional generic powerhouse to a
potential innovative drug developer. Whereas there are green shoots that show promise of
growth in the right direction, there remain several structural and environmental
impediments for this growth to truly flourish. As more changes are rolled out, companies
need to actively adapt to take advantage and not be blindsided.
Key Financial Ratios
| Key Financial Ratios |
FY 2022 - 2023 |
FY 2021 - 2022 |
Reason |
| Debtors Turnover |
7.90 |
6.06 |
Due to higher out-licensing revenue during current year |
| Inventory Turnover (no. of days) |
N.A. |
N.A. |
Due to nil inventory |
| Interest Coverage Ratio (in times) |
N.A. |
N.A. |
Due to higher losses |
| Current Ratio (in times) |
2.54 |
0.42 |
Due to increase in investment in mutual funds, certificate of
deposits and fixed deposits. |
| Debt Equity Ratio (in times) |
0.03 |
2.54 |
Due to repayment of borrowings during the year |
| Operating Profit Margin (in %) |
(90.02) |
(138.48) |
Due to higher revenue during current year |
| Return on Net Worth (in %) |
(43.41) |
(651.37) |
Increase in capital due to allotment of shares in
preferential issue |
| Net Profit / Loss Margin (%) |
(93.22) |
(148.19) |
Due to higher out-licensing revenue during current year |
SPARCs Response to Global Trends
SPARC has taken a deliberate and measured response to the changing
external environment driving the growth trajectory of the biopharmaceutical industry.
SPARC has narrowed its focus on select therapeutic areas i.e., oncology &
neurodegeneration, which together make the majority of pipeline assets. As discussed
above, both these areas are expected to drive the value growth for the industry in coming
years.
In line with the global trends and productivity enablers, SPARC
continues to evolve its competencies and is adopting new technologies and treatment
modalities to develop novel drugs. A key area of SPARCs focus for last couple of
years has been biologics and the ability to create modular immune-fusions and ADCs. The
platform has seen some early success during evaluation of anti-MUC-1 ADC (SBO-154) in the
preclinical animal models. These newer platforms for drug development help to expand the
operating field for SPARC beyond small molecules.
Similarly, in small molecule development, SPARC has advanced SCC-138 in
Phase 2 study for treatment of Parkinsons Disease (PD) with multiple exploratory
biomarkers being evaluated to understand the effect of drug on delaying or halting the
progression of disease.
SPARC has also collaborated with external partners for use of
technology for drug development process, not just to speed up the development process but
also to identify right candidates for development. SPARC will continue to cautiously
invest in critical competency areas aligned with the evolved portfolio of programs under
development.
SPARCs Performance Overview
During the year 2022-23 the Company focused primarily on execution of
operational objectives to ensure that the projects reach the stipulated milestones as per
the plan.
Key milestones for late-stage assets were achieved during the year.
Some notable achievements include NDA approval by the USFDA and licensing of SezabyTM
(phenobarbital sodium for injection), and NDA filing of PDP-716 (brimonidine OD) in
collaboration with Visiox Pharma.
The clinical programs continue to recruit patients across various sites
in multiple geographies. SCC-138 is expected to complete patient recruitment during FY24.
Part B study of SCO-088 was completed during the current year. SPARC will begin a
comparator trial during FY24 to support registration of SCO-088.
SPARCs preclinical programs are on track and SPARC expects to
file Investigational New Drug (IND) application for SCD-153 in FY24. In parallel, the team
is also working on completing the required activities with expected IND filing for SBO-154
in FY25.
The revenue from the approved 505(b)(2) programs is expected to be
affected due to supply disruptions caused due to the compliance challenges of the CMO
partner. SPARC is working with the partners to ensure supplies are normalized as soon as
possible.
During the year, the warrants issued in 2021 were fully converted and
SPARC received ~INR 703 Cr ($86 Mn). The available cash from conversion of warrants will
be su_icient to cover the cost of ongoing clinical studies. The funds will be utilized to
advance the programs under development and to meet the expenses associated with the
operations. The Company also has a line of credit of INR 475 crores (~$63 Mn) to meet any
interim funding requirements.
Overall, with licensing of SezabyTM, SPARCs pipeline
is completely transitioned to New Chemical Entities (NCEs) and New Biological Entities
(NBEs). SPARC will utilize the learnings from the initial programs to build a sustainable
R&D organization with capabilities across the value chain, and an attractive portfolio
with multiple high-value assets.
Progress on Key Programs
1. ElepsiaTM XR
Tripoint continued to successfully commercialize ElepsiaTM
XR tablets in the United States. The supply has been disrupted due to
compliance challenges at the partners manufacturing site. SPARC & Tripoint are working
on finalizing alternate site for restoring the supply and to ensure availability of
ElepsiaTM XR tablets.
2. PDP-716 for the treatment of open-angle glaucoma
PDP-716 is a novel, once-a-day formulation of brimonidine developed
using SPARCs proprietary TearActTM technology.
During FY23, SPARC along with Visiox completed the NDA submission to
the USFDA; the NDA was accepted for review by the USFDA with a PDUFA goal date in early
August 2023. SPARC & Visiox are working together to plan for the launch of PDP-716
upon approval by the USFDA.
3. SDN-037 for the treatment of pain and inflammation following
ocular surgery
SDN-037 is a novel, twice-a-day formulation of difluprednate developed
using SPARCs proprietary technology. Visiox Pharma has decided to file the NDA with
the USFDA after the outcome of NDA filed for PDP-716.
4. SezabyTM (Phenobarbital Sodium) for the treatment
of neonatal seizures
SPARCs NDA for SezabyTM was approved by the USFDA.
Recently, the USFDA granted orphan drug exclusivity to SPARCs
SezabyTM.
SPARC licensed the US commercialization rights of SezabyTM
to Sun Pharmaceutical Industries Inc. Under the terms of the license agreement, Sun Pharma
paid SPARC an upfront payment of $10 Mn. SPARC will also be eligible to receive milestone
payments contingent upon the achievement of regulatory and sales milestones, as well as
tiered royalties on sales.
Commercialization of SezabyTM was initiated by Sun Pharma in
Jan 2023 and it expects to build the sales for SezabyTM over coming quarters.
5. Vodobatinib for the treatment of CML (SCO-088)
Vodobatinib is a novel, highly-selective c-Abl inhibitor for treatment
of refractory CML. Part C of the study is recruiting patients who have failed three lines
of treatment including ponatinib. The patient recruitment for this study has been slow as
the available patients eligible for the study is limited. SPARC continues to take steps to
improve recruitment rates.
SPARC presented the results of the ongoing study at the 2022 ESH and
ASH Annual Meetings as an oral presentation. This was the third consecutive year of SPARC
being selected for an oral presentation, demonstrating the hematology-oncology
communitys belief in the promise of vodobatinib.
6. Vodobatinib for the treatment of neurodegenerative diseases
(SCC-138)
Vodobatinib is being investigated for multiple neurodegenerative
diseases and is a potentially first-in-class disease modifying treatment targeting cAbl.
The Phase 2 study in Parkinsons disease (PROSEEK) is currently
recruiting patients and over 80% patients are randomized. SPARC aims to complete the
patient recruitment in coming quarters and the topline readout from this study is expected
in FY24.
Another Phase 2 investigator-initiated study is recruiting patients
with Lewy Body Dementia at Georgetown University, Washington D.C.
7. Vibozilimod for the treatment of autoimmune disorders
(SCD-044)
Vibozilimod (SCD-044) is a selective S1PR1 agonist in development for
autoimmune disorders.
SPARC previously licensed the global rights of vibozilimod to SPIL,
which is recruiting patients for Phase 2 studies in Psoriasis and Atopic Dermatitis.
8. Bexirestrant (SCO-120) for the treatment of HR+, HER2-
metastatic breast cancer
Bexirestrant is a novel, orally bioavailable, SERD for the treatment of
Hormone Receptor positive (HR+), Human Epidermal Growth Factor Receptor 2 negative
(HER2-), metastatic breast cancer. During FY23, SPARC completed a Single Ascending Dose
(SAD) study and a Multiple Ascending Dose (MAD) study in metastatic breast cancer
patients. The company paused the development of bexirestrant due to changing clinical
landscape.
Outlook
SPARC has transitioned its portfolio to focus on developing NCEs and
NBEs. With multiple assets under clinical development the focus for SPARC in the coming
year will be to build on execution to ensure that the next milestones for the programs are
achieved as per the objectives set.
The immediate priority for SPARC is to work with partners to ensure
that the supply of approved products is restored and the patient recruitment in ongoing
clinical studies is completed as per the plan. Additionally, SPARC will work with Visiox
Pharma for securing NDA approval of PDP-716 and to prepare for successful launch of
PDP-716. SPARC will work with Sun Pharma to drive the uptake of SezabyTM.
SPARC is aiming to initiate first-in-human Phase 1 studies for SCD-153
in FY24 and for SBO-154 during FY25. Our collaboration model with academia is expected to
add new preclinical programs to SPARCs pipeline.
In the medium term, SPARCs pipeline has several inflexion points
that can drive significant value for the company. SPARC will continue to build new
competencies that are aligned with the broader portfolio strategy. SPARC is well
positioned to leverage the ‘still very attractive" global opportunity and has
the potential to be a big catalyst success story for the emerging Indian innovation
industry.
Human Resource Strategy
Strategic human resource (HR) management is the foundation of a strong
business. At SPARC, a young dynamic team of promising and talented employees, work
relentlessly to pursue SPARCs business plans. With high focus on the Sunology values
of Innovation, Initiative, Passion and Humility, the HR of the Company is aligned towards
hiring, developing and retaining highly proficient talent and works to provide an
inclusive environment that is welcoming to all diversities. The HR department continuously
benchmarks best practices across the industry - in the areas of Talent Management,
Learning & Development, Performance Management System and Employee Care. This is done
with the objective to provide highest levels of employee experience and keep its workforce
motivated, knowledgeable and progressive, aligning employees with business goals. The team
continuously works towards improving processes and takes initiatives to align our people
and processes with the changing business requirements to create a culture of continuous
learning and innovation. To enhance its R&D capabilities, the Company regularly
collaborates with some of the top Indian universities and training institutes and imparts
skill development trainings to its employees and prepares them according to the change in
business strategies. Effective communication platforms are used to foster transparency and
create open forums for discussions to address concerns.
As on 31st March 2023, the Company has a dedicated team of 407
employees (across India and the US), of which 85% are scientists.
Risks and Concerns
SPARCs R&D activities/initiatives offer both new
possibilities as well as challenges but the core focus is to adhere to risk tolerance
thresholds. The Company may be affected by risks and uncertainties related to product
development, regulatory approval, patent and proprietary rights scope, market competition,
and technological advancements. Foreign exchange rate variations can also affect sales,
profitability, and cash flows. As a result, SPARC works hard to identify important risks
and adopt mitigation strategies to lessen the impact on its operations.
Internal Control Systems and their Adequacy
SPARC maintains adequate internal control systems commensurate with the
size, nature and complexity of its business operations. These controls are regularly
tested for their adequacy and effectiveness by internal as well as external auditors of
the Company. Further, the Audit Committee reviews the audit reports for each quarter and
monitors the implementation of auditors recommendations.
Disclaimer
Certain statements in the management discussion and analysis, related
to the future prospects of the Company may be forward looking statements which involve a
number of underlying identified / non identified risks and uncertainties that may
materially alter actual results. The assumptions hereby made are based on available
internal and external information and certain facts and figures stated in the report. The
factors underlying such assumptions may change over time along with the estimates on which
they are based. The forward-looking statements represent the Companys intentions,
beliefs or expectations and it speaks of assumptions made on the date when the facts were
made available. The Company assumes no obligation to revise or update forward-looking
statements on account of new information, future events, or otherwise.
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