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

September 25, 2022

Rise of the machines: Novo Nordisk pledges $200M to create first quantum computer for life sciences

Life sciences

Big Pharma has long seen the potential for AI and machine learning to accelerate drug development. But Novo Nordisk is going a step further by channeling $200 million toward the creation of a computer that will outrun anything in existence.

September 25, 2022

Mount Sinai AI uncovers new brain analysis method to predict dementia, Alzheimer’s disease

Life sciences

Current methods for diagnosing Alzheimer’s disease rely on a complex combination of self- and caregiver-reported symptoms, a physical examination and either a PET scan or a spinal tap to look for evidence of amyloid plaque build-ups in the brain. But a new artificial intelligence-based method may make the diagnostic process a much more objective one.

September 25, 2022

New AstraZeneca-backed report finds big money behind diverse owners and entrepreneurs in Europe

Life sciences

There is lots of talk about diversity and inclusion in business, including in pharma and medtech. A new report by the Open Political Economy Network (OPEN), a think tank focusing on migration and diversity, released its “Minority Businesses Matter: Europe” report highlighting the successes and challenges of ethnic minority-owned businesses in Europe.