Viatris to slash up to 9,000 jobs at manufacturing facilities as part of global cost-cutting plan
Newly formed generics business identifies the first five impacted plants as it seeks to reduce costs by $1 billion by the end of 2024
Newly formed generics powerhouse Viatris has announced plans to close, divest or downsize up to 15 manufacturing facilities, slashing up to 9,000 jobs, as part of a global restructuring initiative as the company seeks to reduce costs by at least $1 billion by the end of 2024.
Viatris, formed by the $12 billion merger of Mylan and Pfizer’s generics unit, Upjohn, in November, said affected facilities were deemed to be no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products and named the first five impacted plants.
The cuts will first occur at the company’s oral solid dose manufacturing facilities in Morgantown, West Virginia; Baldoyle, Ireland and Caguas, Puerto Rico and its Unit 11 and Unit 12 active pharmaceutical ingredient (API) manufacturing facilities in India.
Viatris added that the divestiture of its injectables manufacturing site in Poland was recently completed.
The workforce reductions at the impacted manufacturing sites are expected to occur in phases over the next few years. Viatris said it would seek to find potential buyers for its facilities “wherever feasible” in order to preserve as many jobs as possible.
The company said it is also committed to ensuring supply continuity – in some cases, within its own network -- so that demand for critical medicines is met.
“The actions we are announcing today are consistent with our commitment to optimally design our new company to operate efficiently,” said Viatris chief executive, Michael Goettler. “This initiative is part of Viatris’ roadmap to ensure we can maximize long-term value creation for shareholders and for all stakeholders, including the patients and customers we serve.”
Viatris chief financial officer, Sanjeev Narula, said the company would review its roadmap at its investor day on March 1, 2021 “on how we intend to deliver on our stated commitments, maximize value creation, and generate strong and accelerating free cash flows while positioning Viatris for a sustainable future.”
West Virginia Senators, Shelley Moore Capito (Republican) and Joe Manchin (Democrat) both released statements expressing their disappointment that the Morgantown facility would be closing down.
“This is devastating news for the hundreds of hardworking individuals who worked at Mylan that make up the plant’s workforce and the entire community—especially during the holiday season,” Senator Capito said.
Senator Manchin said that while it was his understanding that Viatris would maintain its research and development operations in Morgantown, “the closure of the manufacturing facility by July 31 and the loss of these jobs for the region is devastating.”
The latest appointments and promotions across the pharmaceutical supply chain.
News EU Medical Devices Regulation causes unintended disappearances of medical devices for children, doctors stateDoctor groups and associations have appealed to the EU to correct the EU Medical Devices Regulation law that may cause unintended shortages of essential drug and medical devices for children and rare disease patients.
Last year, 37 novel drugs were approved by the FDA, this was a high number for such a category, and covered many fields including oncology, demonstrating how promising further research is, and how it is only continuing to build. To date, there are alre...
A novel rapid diagnostic test for early-stage Alzheimer's disease has been developed using a biomarker binder from Aptamer Group along with technology from Neuro-Bio, the neurodegenerative disease experts.
Listen to the CPHI Podcast Series this June to hear Gil Roth of the PBOA speak with Digital Editor Lucy Chard about the biggest trends and topics to watch in pharma outsourcing and manufacturing at the minute.
What does the rise of AI-powered chatbots such as ChatGPT and GPT-4 mean for pharma marketeers?
Insulin prices have dropped in a stark play by the three biggest makers of the product, after calls from the top of the US government.
In an open letter to the European Commission, Medicines for Europe calls for a new medicine security contract with their goal to improve access to medicine and ensure a secure supply chain to Europe.
Position your company at the heart of the global Pharma industry with a CPHI Online membership
Your products and solutions visible to thousands of visitors within the largest Pharma marketplace
Generate high-quality, engaged leads for your business, all year round
Promote your business as the industry’s thought-leader by hosting your reports, brochures and videos within your profile
Your company’s profile boosted at all participating CPHI events
An easy-to-use platform with a detailed dashboard showing your leads and performance