Generic Drug Manufacturer Teva Will Eliminate 1,500 US Jobs

After completing the $6.8 billion purchase of Pennsylvania-based Cephalon, Teva, the world’s largest generic drug manufacturer announced plans to eliminate about 1,500 US jobs, most of them at Cephalon. Cephalon, which has several marketed products, currently employees about 3,700 US-based persons. This means that Teva will cut Cephalon’s workforce by about 40 percent.

According to a post on today’s Pharmalot blog, a company spokesperson said that the jobs that will be eliminated will be those that overlap with those functions already being performed by Teva. Layoffs at Cephalon were not unexpected as the company had previously identified approximately $500 million in possible savings that it would implement after the deal closed.

If layoffs at pharmaceutical and biotechnology companies continue at their current pace, I am not sure that there will be a US life sciences industry in the future.

Until next time...

Good Luck and Good Job Hunting!!!!!!!!!

 

It Had To Happen Sooner Or Later: FDA Slaps J&J With A Consent Decree For Permanent Injunction

The US Food and Drug Administration yesterday announced that a consent decree of permanent injunction has been filed against McNeil-PPC, the consumer products division of Johnson and Johnson, and two of its senior executives, for “failing to comply with current good manufacturing practice requirements as required by federal law. The action prevents McNeil, a subsidiary of Johnson & Johnson, from manufacturing and distributing drugs from its Fort Washington, Pa., facility until the FDA determines that its operations are compliant with the law.”

McNeil Consumer Healthcare Division’s Vice President of Quality Veronica Cruz and the company’s Vice President of Operations for OTC Products Hakan Erdemir were named defendants in the consent decree, filed with the U.S. District Court for the Eastern District of Pennsylvania in Philadelphia on March 10, 2011. The highest ranking company executives in charge of the facilities named in a consent decree are always included (by law) on the civil action.

The decree also requires McNeil to adhere to a strict timetable to bring its facilities in Las Piedras, Puerto Rico, and Lancaster, Pa., into compliance.

Consent decrees are civil actions—not criminal ones— and are meant to be remedial rather than punitive. In other words, there are no fines levied and the agency expects the companies under consent decree to bring their manufacturing facilities back in to compliance with Current Good Manufacturing Practices (CGMP). However, if the company fails or refuses to comply with the FDA, criminal charges can be filed against the companies and the two executives mentioned in the consent decree. The agency had little choice but to seek a consent decree of permanent injunction against McNeil because of manufacturing problems and recalls of several of its signature brands including Tylenol, Motrin, Zyrtec, and Benedryl. Criminal charges may be forthcoming because of possible cover ups of the recall that involved hiring outside contractors to purchase tainted produced in bulk to surreptitiously remove them from store shelves.

FDA had little choice but to seek a consent decree because of the seriousness and continuous nature of the problems at its Fort Washington production facility and the fact that J&J senior executives were either unaware or unconcerned with the problems at its subsidiaries. While working under a consent decree may be embarrassing for J&J, the damage caused by the recalls of some of its most visible consumer and OTC brands may be irreparable.

 Until next time...

Good Luck and Good Job Hunting!!!!!!!!!!

 

Job Cut Update: GlaxoSmithKline Mum on Number of US Jobs that will be Lost

Despite the announcement late last week in the London Sunday Times that GlaxoSmithKline (GSK) will eliminate 4000 jobs worldwide, company official are refusing to disclose the number of worker who will lose their jobs in the US. Cuts are expected throughout the US including GSK’s R&D facilities in the Philadelphia, PA area and at its US headquarters in Research Triangle Park, NC which employs roughly 5,000 people.

GSK officials typically refuse to share detailed information on how layoffs affect its Triangle work force. Nearly a year ago, the company cut an undisclosed number of workers at a customer response center in RTP. GSK announced a first cost-cutting initiative in October 2007, eliminating thousands of jobs worldwide, and then it expanded that effort in February 2009 with many hundreds losing jobs at it North Carolina facilities in RTP and nearby Zebulon.

This coming Thursday is expected to be pink slip day at GSK.

Until next time....

Good Luck and Good Job Hunting (forget RTP)!!!!!!!

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Wyeth-Pfizer Merger Jobs Update: Wyeth's Collegeville, PA Headquarters Will Remain Open

In a previous blog post, I suggested that there was much speculation about whether or not there would be substantial job losses at the various Wyeth sites throughout Pennsylvania after the Wyeth-Pfizer merger closes. As you may recall, company representatives were assuring Pennsylvania legislators that major job cuts and site closure weren’t likely. 

Yesterday, Bernard Poussot, president of Wyeth Pharmaceuticals, sent a message telling employees the company’s Collegeville Headquarters, which employs about 4,000 people, would remain open after the deal closes on October 15, 2009. The fate of employees at other Pennsylvania-based Wyeth facilities remains uncertain.

While this may be good news for some employees at the Collegeville site, it is likely that a substantial number of jobs will be shed after the deal closes. Previously, Pfizer suggested that the combined company intends to shed about 20,000 jobs. I guess the good news is that all 4000 Wyeth employees won’t be losing their jobs!

Until next time...

Good Luck and Good Job Hunting!!!!!!!