Sector News

400 Novartis workers prepare for job losses at U.K. manufacturing site

February 13, 2020
Life sciences

CEO Vas Narasimhan recently told investors Novartis is well along toward its goal of consolidating its manufacturing into one “that’s much more focused on high-end technologies.”

One of the facilities that is in the path of that advancement is the company’s Grimsby, U.K. operation where about 400 workers are set to lose their jobs unless a buyer can be found for the site.

Taskforce members made up of workers, local officials and Novartis met today for an update on how the closing process will proceed if a buyer does not materialize, BusinessLive reports. The task force was formed to aid workers and the town with job losses after the closing was first announced in 2018.

Novartis last fall said half-a-dozen companies had sized up the site for a possible purchase but nothing has been announced since.

Novartis intends to begin layoffs in April with the closure of one facility at the site and wind down the rest of the operation by the end of the year.

A site in Ireland is also being downsized. The drugmaker announced in the fall that it will close a production facility at the Ringaskiddy site in Ireland by mid-2022 as it consolidates its active pharmaceutical ingredient operations there.

Novartis has been closing and selling off bulk and formulation manufacturing facilities as it shifts to high-margin specialized drugs like cell and gene therapies and away from older meds and generics.

“We also are advancing our efforts in procurement and manufacturing, and are really reducing the excess inventories that we’re holding and also deploying data and digital much more aggressively across the manufacturing network,” Narasimhan said on an earnings call two weeks ago.

By Eric Palmer

Source: Fierce Pharma

comments closed

Related News

January 22, 2023

Sun Pharma to buy Concert Pharmaceuticals for $576m

Life sciences

Sun Pharmaceutical Industries has signed a definitive agreement to buy all outstanding shares of Concert Pharmaceuticals in a deal valued at $576m. Under the deal, the company will buy all shares of Concert common stock through a tender offer for $8.00 per share in cash upfront payment.

January 22, 2023

Novo Nordisk diabetes pill wins FDA approval for first-line use

Life sciences

The Food and Drug Administration on Thursday approved Novo Nordisk’s diabetes pill Rybelsus as an initial treatment to lower blood sugar levels, a label expansion that will allow it to compete more directly with other oral drugs from Merck & Co. and Eli Lilly.

January 22, 2023

Bayer feeling more heat from activist investors, this time from Bluebell

Life sciences

Since making an ill-advised $63 billion buy of Monsanto in 2018, Bayer has faced heaps of pressure from investors that have called for the company to oust its leadership and to restructure. Now comes new pressure from a familiar source. Bluebell Capital Partners has bought an undisclosed stake in the company and is agitating for a breakup, sources told Reuters.

How can we help you?

We're easy to reach