Teva stops production at Puerto Rican site

Israeli drugmaker Teva Pharmaceutical has announced that it will cease production at its Cidra, Puerto Rico-based manufacturing facility in the fourth quarter of the year, as part of its global rationalization study. The company added that the move is designed to improve its supply chain efficiency and competitive position following its acquisition of IVAX earlier this year (Marketletter February 6).

The facility, which was obtained as part of the IVAX purchase, employs 550 people to manufacture around 50 products, the majority of which have already been transferred to alternative Teva sites around the world. The firm added that it expects the closure to provide a further $45.0 million in cost savings in 2007.

Teva said that it would work closely with employees and local authorities to ensure that the process is smooth, adding that it would offer financial and placement assistance to those employees affected by the closure. The company also said that its active pharmaceutical ingredients facility located in the Puerto Rico would continue its operations.