Loading...
Loading...
Eli Lilly and Company
today announced plans to conclude production and pursue a sale of one of its
three manufacturing plants in Puerto Rico. The manufacturing site, located in
Guayama, Puerto Rico, will remain in operation until the end of 2015. All of
the approximately 100 full-time non-contracted employees currently working in
Guayama will be offered employment at Lilly's Carolina (Puerto Rico) location.
"The decision to conclude operations at Guayama is based upon the evolution of
the company's pipeline, which includes a growing insulin and biologics
portfolio, coupled with a less capacity-intensive small molecule portfolio,"
said Paul Ahern, Ph.D., senior vice president of Global Active Pharmaceutical
Ingredient and Dry Products Manufacturing. "The utilization of the site has
been impacted by patent expirations on the medicines produced there. As we
assessed our long-term capacity needs, the company made the business decision
to conclude manufacturing at the site."
"Our employees at Guayama have demonstrated strong, sustained performance
throughout the years and have produced lifesaving medicines for patients
around the world," said Maria Crowe, president for Lilly's Global
Manufacturing Operations. "For nearly 50 years, Puerto Rico has served as a
major manufacturing location for Lilly, and it will remain so in the future.
We have talented and experienced colleagues in Puerto Rico, and we are pleased
to be able to maintain employment opportunities for the Lilly employees
affected by this decision."
As a result of this action, the company expects to record a charge of
approximately $170 million (pre-tax) or approximately $0.16 per share (after
tax) in the fourth-quarter of 2014.
While Lilly will initiate efforts to sell the Guayama site, the company will
continue to invest in two manufacturing plants at Carolina. In November 2013,
Lilly announced a $200 million investment to increase capacity in its
Carolina-based insulin active ingredient manufacturing plant. In July 2014,
Lilly announced an additional $40 million in investments to increase
capabilities at its Carolina-based drug product site as part of a rebalancing
of Lilly's oral solid dosage network.
Lilly began manufacturing operations in Puerto Rico in 1965 and employs
approximately 1,600 employees on the island.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: NewsPress Releases
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in