When Boehringer Ingelheim began closing its Ben Venue site, it justified the decision by describing a grim future for the plant, with operating losses of $700 million forecast over the next 5 years. Now it hopes someone can look past the losses and troubled quality control record to see a business worth buying.
The list of Merck manufacturing plants affected by its restructuring is growing longer. With Puerto Rico, New Jersey and Pennsylvania already braced for job cuts, Merck confirmed this week it will add to Irish woes by shuttering its women's healthcare production plant in Swords by the end of 2017.
LTS Lohmann, which Novartis owns a big piece of, is reportedly attracting bids of about $1.6 billion from private equity investors who want its expertise in the growing niche of manufacturing transdermal patches.
GlaxoSmithKline, already in the midst of an expansion at an active pharmaceutical ingredient plant in Scotland, has decided to add even more capacity with a little financial help from the government.
Paul S. Levy, co-founder of the investment group that just announced a $2.6 billion deal to buy DSM Pharmaceutical Products and merge it with Patheon, sees opportunity in rolling up more players into a larger company. But with other private investors in the market, he may find competition looking over the same targets.
Pfizer continues to suffer from post-patent revenue issues and so continues to close plants to balance its manufacturing needs. The next plant in line to close is a facility in Puerto Rico.
Actavis keeps rolling up competitors and keeps closing up plants to help pay for the process. Come early January, a facility in California will be the next to go.
Johnson & Johnson's Janssen unit and Merck KGaA are joining the parade of companies rolling out new manufacturing facilities in China, a market that could become the world's largest in a decade.
Merck has three facilities in Puerto Rico with more than 1,000 employees, but two of those will fall in the next couple of years as the drugmaker institutes its plan to cut 20% of its workforce and $2.5 billion in costs.
GlaxoSmithKline will "proactively" build a new plant in India as it bets on growing business there to propel earnings growth. The plant will be another facility in which it uses continuous processing and adds to the £100 million the company has invested in manufacturing capcity in India in the last decade.