July 2013 issue of Life Science Leader magazine – Written by Rob Wright
This year there have been a number of companies announcing pharmaceutical manufacturing plant closures. For example, Catalent Pharma Solutions announced the closing of its Allendale, NJ, facility. Solgar Inc., a subsidiary of NBTY, announced the closing of its plant in Lyndhurst, NJ. These pharma manufacturing plant closings equate to 196 jobs lost for New Jersey. Jeremy Levin, CEO of Teva Pharmaceuticals, is looking at net income being down 26.7%. When income is down, companies look to cut costs. For Teva, one of the cost-cutting solutions is the proposed closure of the company’s West Rockhill Township, PA, manufacturing facility, resulting in the loss of 450 jobs. That comes on the heels of Teva’s previously announced closing of a plant in Irvine, CA and its 403 jobs. These are tough decisions and have a lasting impact on the families of 1,049 people. Having been laid off before, I know how it feels. You tell yourself it is just business and not to take it personally — this is easier said than done. The business decision to close a plant has a negative ripple effect on the economy as those who are unemployed begin spending less, stop contributing to 401K investment plans, pay fewer taxes, and draw unemployment. But what if you didn’t have to close the plant?…