My first question here when I read about selling the Irvine plant is what about Propofol? Will we be down to just one supplier again? The plant just recently began manufacturing the drug again and the plant has had a history of issues with the FDA as it’s a very difficult drug to manufacture and there’s not a lot of profit in it; however, it is the #1 choice for surgery anesthesia.
The plant closure in Pennsylvania is not immediate and it appears there’s a 3 year time line to close that facility. The layoffs are around 10% of the world wide work force. Teva is based in Israel and will plan on keeping their generic business rolling and take a hard look at the drugs they have under development. One branded drug, Copaxone accounts for around half of the profits for the company at present and comes off patent next year. BD
Teva Pharmaceutical Industries Ltd. plans to cut about 5,000 employees mostly by the end of next year as part of a restructuring designed to slim the drugmaker's business and make it more efficient.
The Israeli company said Thursday it employs about 46,000 people worldwide, so the cuts amount to nearly a 10 percent global workforce reduction. The drugmaker plans to trim oversized parts of its business while growing its generic and core research and development programs. It plans to reinvest savings from the cuts in what it considers to be areas with high potential, like development of complex generics and specialty pharmaceutical products.
Earlier this year, the company said it would close by 2017 a Sellersville, Pa., generic drug plant that employs about 450 people. It also plans to sell another plant in Irvine, Calif.
Teva said the moves are part of a global restructuring it announced in 2012. It now expects to save about $2 billion annually by the end of 2017, largely due to a reduction in the company's cost of goods. That represents the high end of its previously forecast savings range of $1.5 billion to $2 billion.