Pharmaceutical firm Viatris will close five production facilities across its footprint in a bid to cut at least $1 billion in costs by the end of 2024, the company announced in a recent release.
During the restructuring initiative, the company intends to close its oral solid dose production plants in Morgantown, WV, Baldoyle, Ireland, and Caguas, PR and its Unit 11 and Unit 12 active pharmaceutical ingredient (API) manufacturing sites in India.
Job cuts will take place at the impacted facilities over the next several years. Viatris said it will work to find buyers for the plants and save as many jobs as possible.
“The actions we are announcing today are consistent with our commitment to optimally design our new company to operate efficiently. This initiative is part of Viatris’ roadmap to ensure we can maximize long-term value creation for shareholders and all stakeholders, including the patients and customers that we serve,” said the firm’s CEO, Michael Goettler, in a statement.
Viatris also indicated that further reconfigurations of its drug manufacturing footprint are on the horizon.
“The company expects to optimize its commercial capabilities and enabling functions, and close, downsize or divest up to 15 manufacturing facilities globally that are deemed to be no longer viable either due to surplus capacity, changing market dynamics, or a shift in its portfolio toward more complex products,” the company said in the release.
Up to 20% of the 45,000 workers employed by Viatris could face job cuts as the restructuring plan proceeds.