79 Employees Affected as Novartis Plans Shut Down of UK Site

Despite support for proposed government investment in the pharma and biotech industries in the United Kingdom, Novartis is looking to close down a facility in Sittingbourne, England that could cost about 79 jobs.

Novartis told Kent Online that the reason the company is looking at closing the facility is the rapid advancements in point of care diagnostic devices. The northern England manufacturing facility is a Near Patient Testing unit that developed the Niji point of care diagnostic device, Kent Online reported. That device is used by medical professionals to diagnose allergic disorders and make treatment decisions based off of a blood draw. Doctors can make a quick diagnosis of IgE-mediated allergic disorders, such as asthma, in about 12 minutes. In announcing the system last year, Novartis said identifying patients with uncontrolled asthma mediated by IgE remains an area of high unmet need.

However in a statement to Kent Online, Novartis said technology in the point of care space is "evolving very quickly."

"Novartis believes that a more sustainable model, and one which better serves the interests of patients, is to partner with external providers, leveraging their technology," Novartis told the U.K. publication. "Novartis has therefore made a proposal to close the NPT unit."

The point of care market is expected to be worth about $40 billion by 2021, according to MarketsandMarkets. The global point-of-care diagnostics market is divided into 12 major segments, namely, glucose monitoring kits, infectious diseases testing kits, cardiometabolic monitoring kits, coagulation monitoring kits, hematology testing kits, urinalysis testing kits, cholesterol test strips, drugs-of-abuse testing kits, tumor/cancer markers, pregnancy and fertility testing kits, fecal occult testing kits, and other products, MarketsandMarkets reported.

The Switzerland-based company told Kent Online it sought a buyer or development partner in order to continue operations at the Sittingbourne plant, but was unable to do so. With no potential partner, Novartis said it will shutter the facility. Closing down the site will impact up to 72 people in the U.K., six in Switzerland and one in the United States, Kent Online reported. The plan is subject to an employee consultation process and final U.K. board approval, according to the report.

Novartis’ announcement of the possible closure came about a week after the company announced support of Prime Minister Theresa May’s proposal for government investments in research and development and infrastructure to spur growth in the pharma sector following Brexit. Earlier this year, May triggered Article 50, which began the two-year countdown for Britain to leave the European Union. According to Politico, Britain has been a net receiver of science funding from the E.U. The investment strategies outlined by May are meant to rectify that.

Novartis said that if the plan is implemented, the U.K. has the "potential to be a world leading force in science, healthcare and medical innovation, and one of the best places in the world for discovering, developing and adopting new medicines for U.K. patients." Novartis said it already spends approximately £40 million (about $53 million) annually on R&D in the U.K.  

"Novartis will continue to explore options for future collaborations and to optimize our footprint in the U.K., as we do in all major markets," the company said in a Nov. 27 announcement.