Teva says US facility will close in cost-cutting drive
pharmafile | May 3, 2013 | News story | Manufacturing and Production |Â Â Teva, closure, cutsÂ
Teva has said it will shut down a manufacturing and R&D facility in Pennsylvania by 2017, with the loss of up to 450 jobs.
The news was announced by recently-appointed chief executive Jeremy Levin as Teva reported its first quarter results, highlighted by a 4% drop in sales to $4.9 billion and net income down 26% to $960 million.
The Sellersville closure follows an earlier decision to shut down an injectable pharmaceutical production plant in Irvine, California, that had been experiencing quality control problems and was closed temporarily in 2010 amid concerns about bacterial contamination of sterile products.
Sellersville “will remain active and productive until it closes in 2017”, said Levin, who told investors on a conference call that cost savings ‘remain a high priority’ for the company. The decision was reportedly taken because of dwindling demand for products made at the facility.
The new chief executive – who took over the helm of the company a year ago has previously announced a restructuring programme, aimed at trimming annual costs by $1.5-$2 billion over the next five years.
Some of the Sellersville employees will be transferred elsewhere while others will have the opportunity to apply for positions in other Teva facilities, said the company, which also dropped plans to open a $300 million distribution centre in Philadelphia last year.
The company said the downturn in sales in the first quarter was caused by generic competition to its narcolepsy drug Provigil (modafinil), and a weaker-than-expected performance for its generic medicines division which fell 12% to $2.3 billion.
Multiple sclerosis drug Copaxone (glatiramer acetate) continued to fly the flag for Teva’s speciality products business, with first-quarter sales up 22% to $1.06 billion, although the brand is also maturing fast with patent expirations due in 2015.
Phil Taylor
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