Sector News

Israeli unions warn Teva Pharm over plan to close Ashdod plant

April 16, 2018
Life sciences

Israel’s main labor federation intends to take labor or legal action against Teva Pharmaceutical Industries if the drugmaker does not suspend a decision to close a plant in the Israeli port city of Ashdod, it said on Sunday.

Debt-laden Teva, the world’s largest generic drugmaker and Israel’s biggest company, said last week that it would close the unprofitable plant in March 2019 after failing to find a buyer for the facility.

Half of the factory’s 175 workers would lose their jobs in the coming months, with the rest continuing to work until the plant closes.

In a letter to Teva’s management, the Histadrut federation said the company’s decision was contrary to a prior declaration that it would retain most of its activities in Israel.

The federation said it had been in contact with potential buyers of the plant who said that their requests to enter deal talks had been ignored.

A Histadrut spokesman declined to name the potential buyers but said there were two such offers.

A Teva representative was not immediately available to comment.

The company has until Tuesday to respond, Histadrut said in its letter, while spokesman for the federation said the unions could take strike action or take the case to court.

In December Teva said it would cut 14,000 jobs — 25 percent of its global workforce — and close many plants as part of a restructuring aimed at clearing debt.

Teva has said that some of the Ashdod plant’s activities were outside its core business and the production of IV bags — accounting for half the plant’s activity — is not profitable.

By Steven Scheer

Source: Reuters

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach