And The Next Pharma Plant To Close Will Be…
3 CommentsBy Ed Silverman // July 23rd, 2008 // 5:25 pm
When we talk about shrinkage, we usually toss out the number of jobs being cut. But another way to look at consolidation is to track all the plants closing. Since January 2007, a total of 77 industry sites employing more than 14,000 people were either closed or have been put on notice, according to Industrial Info Resources, a research firm.
Among the 26 that are still scheduled to be shuttered is an AstraZeneca facility in Ontario; a pair of Biovail plants in Puerto Rico; a Bristol-Myers Squibb facility in Puerto Rico, and a Barr Pharmaceuticals plant in New Jersey. And here’s another Biovail plant that will go.
“Some of the plants targeted for closure will undoubtedly be reopened by others. With companies eager to shed the buildings, and often the equipment inside, some good deals come on the market…Others, like Pfizer in Michigan, are donating buildings and equipment to local colleges, universities and economic development boards to bolster education and, ironically, new job creation for emerging companies,” according to IIR.
“For a few million dollars in renovations, the plants and research sites can often be reopened in just a matter of weeks. Yet, in other cases, some of these sites are tainted by the very factors that targeted them for closure. Aging facilities and equipment coupled with stringent FDA regulations place a particular burden on reopening the doors anytime soon.”
Jeffrey Clark, CEO of Beaker.com - The Online Community for Life Sciences Professionals
Puerto Rico is the saddest of all these. So many pharmaceutical companies took their operations offshore in the 90’s thinking this was the permanent solution to their quest for manufacturing efficiency. Now, they are abandoning that market quickly, leaving a scar behind as the only proof that they were ever there.
Annette Kreuger VP Pharmaceutical-Biotech Group
It is important to remember that the “fat lady has not sung yet”…I am monitoring over $22 billion in current active capital industry projects across North America. As I wrote in my original article, this is a natural prograssion within an industry of unbridled growth. It is still growing.
…and in the case of Puerto Rico, I am in the process of writing a full-feature article on just what the island is doing to retain and grow the industry.
Annette Kreuger VP Pharma-Biotech Group Industrialinfo.com
At the Industrialinfo.com website, another recent article can be found referencing a new plant construction-
“Pharmaceutical-Biotech Construction Update: 31 New Facilities Open Doors in First Half of 2008″