Teva Pharmaceutical (NYSE:TEVA) is reportedly closing its sterile injectables plant in Godollo, Hungray and 500 workers could lose their jobs. The generics-maker is slated to close or sell the facility by the end of 2018.
The plant stopped production last year after the FDA found an array of sterility issues that the agency said put the plant’s drugs at risk of contamination. Later, the FDA added the facility to its import alert list, which banned all but 2 of its drugs.
The move to shut down its Godollo plant comes just weeks after reports from Israeli media said that the drugmaker was looking to slash 6,000 jobs in an effort to reduce costs. A company spokeswoman reportedly confirmed the company’s plans to cut costs, but denied any exact figure for job cuts.
A spokeswoman for Teva told FiercePharma that “it’s important to note that Teva remains committed to operating in Hungary and our plants in Debrecen and Sajóbábony, as well as our commercial organization – with more than 2,000 employees — are not included in this plan. Teva will also continue its ongoing investment in local production and R&D activities in Debrecen.”
Spokeswoman Grace Ann Arnold also told the news outlet that the recent shutdown is part of the company’s efforts to “align production capacity with market and patient demand globally.”