Endo pulls plug on Alabama plant, 875 jobs lost

pharmafile | July 25, 2017 | News story | Manufacturing and Production |  Endo, Qualitest, biotech, drugs, generics, pharma, pharmaceutical 

Endo International has announced that it will close down its manufacturing and distribution facilities in Huntsville, Alabama, as part of a larger restructuring of its manufacturing network. The decision will see the company scale back its operations in the area gradually over the next 12 to 18 months, which will see 875 jobs lost as a result of the decision, before finally closing the facilities.

The company explained the decision as a result of the declining demand for the volumes of commoditised products produced by the facilities.

The job losses are part of a process that has taken place after Qualitest, then the fifth largest generics maker in the US, was acquired by Endo. In recent years, after the company joined Endo, the generics market has taken a dive and Endo has been forced to scale back operations in Huntsville accordingly. Only last year, employee numbers were reduced by 350 jobs and more than 60 products were discontinued.

“Endo’s key priorities include building our product portfolio and technological capabilities for the future. Today’s announced action enables a redeployment of investment from commoditised products to more differentiated capabilities and products that represent our core areas of future growth,” said Paul Campanelli, President and CEO of Endo.

The restructure of the business will not come cheap, as it announced that the total cost to the company will be $325 million in charges. The money saved from the close of the plant will be $55 million to $65 million annually so it will take some time for the company to recoup its losses.

The company did not reveal what it planned to do with the closed facility. At the end of last year, Endo managed to find a buyer for another facility it acquired from Qualitest, in North Carolina.

Ben Hargreaves