Teva Sells Plant, 25 Drugs to G&W Laboratories; 280 Jobs Salvaged
March 3, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Israeli biopharma Teva Pharmaceutical Industries Ltd. has found a way to save Pennsylvania 280 jobs from the chopping block, saying Tuesday that it will sell its Sellersville, Penn., facility to G&W Laboratories, Inc. for an undisclosed amount as it simultaneously streamlines its operations and boosts its unloads 25 products from its portfolio.
Teva said in May of 2013 that it would close the Sellersville plant and lay off its 475 workers, at it attempted to trim about $2 billion from its budget by 2018. But the sale of the site lock, stock and barrel to G&W came with the caveat that the company offer employment to the remaining 280 workers still posted there.
The Sellersville site primarily produces generic drugs with a portfolio of more than 50 products manufactured as tablets and capsules, liquids, creams and ointments.
“G&W is pleased to have reached an agreement with Teva to acquire the Sellersville facility; obtain rights to more than 25 products; and employ a highly dedicated and experienced work force,” said stated Aaron Greenblatt, executive vice president and chief commercial officer of G&W Laboratories, Inc. “Under the agreement, G&W will provide a number of products to Teva that will continue to be manufactured at the acquired site. The acquisition of the Sellersville facility and products strengthens our long-term relationship with Teva, and fits with our strategy of acquiring platforms from which we can grow the business and expand our product and dosage offering.”
Under the terms of the deal, G&W will buy all buildings, land, and equipment located at the site and G&W will help through the transition by continuing to manufacture and supply products to Teva from the site, until production is transferred to other Teva sites. The deal is slated to close in March or April 2015.
“Teva is managing its operations to create greater efficiencies and position the company for long-term growth and success,” Carlo e Notaristefani, president and CEO of Teva Global Operations, in a statement. “We have a qualified and dedicated team at Sellersville and are pleased that we were able to come to an agreement with G&W Laboratories that will enable them to continue working in their current community.”
G&W will now own 25 products from the Teva portfolio, to be manufactured and sold by G&W in the U.S. under the G&W label, as well as exclusive rights to sell up to two additional Teva products in the U.S. under G&W's label manufactured in Zagreb, Croatia facility.
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