Viatris said that up to 20pc of its global workforce could be impacted by its decision to close or downsize 15 facilities.
US pharma company Viatris is set to close down its manufacturing plant in Baldoyle, Co Dublin.
The Baldoyle site is one of 15 around the world that will be either closed, downsized or divested as part of restructuring plans. In a press release issued by the company today (11 December), Viatris said it expects up to 20pc of its global workforce to be affected by the restructuring, which will impact facilities in West Virginia, Puerto Rico, India and Ireland.
The Irish Times reports that staff in Baldoyle were told earlier today that the plant is to close down over a two-year period. There are currently 440 workers employed at the oral solid dose manufacturing facility in north Dublin.
Viatris told the Irish Times that there will be no immediate job losses at the plant and the majority of staff will remain employed until late 2022 as it winds down operations. It added that it will continue to employ 1,500 people in the rest of its Irish operations in Dublin, Galway and Cork.
In its press release, Viatris said it is restructuring facilities that have been deemed no longer viable due to surplus capacity, challenging market dynamics, or a shift in its product portfolio toward more complex products.
The company’s CEO, Michael Goettler, said the closures will help the business operate more efficiently and “maximise long-term value creation” for patients and customers.
The company expects to accumulate annual savings of between $250m and $300m once the closures, downsizings and divestments are fully implemented. The majority of this will go towards operating cash flow.
Viatris was established earlier this year through a merger between Mylan and Pfizer subsidiary Upjohn. The facility in Baldoyle to be closed was a Mylan plant.
Speaking about the restructuring initiative, the company’s president, Rajiv Malik, said: “Today we are taking the natural next step as we shape a new company that we believe can meet the needs of patients and customers in this evolving healthcare landscape.
“As we do so, we are intently focused on ensuring supply continuity within the markets we serve, which includes continuing our ongoing engagement with health authorities and customers to ensure patients’ needs are met.”