Pfizer to shut two manufacturing plants in India, putting 1700 jobs at risk

Pfizer plans to shut down two plants in India that manufacture generic drugs due to falling demand, putting around 1700 jobs at risk. The company said it "has conducted a thorough evaluation of the...sites in India and concluded that due to the very significant long term loss of product demand, manufacturing at these sites is not viable."

The facilities in Irungattukottai, Chennai and Aurangabad, Maharashtra were gained via Pfizer's $15-billion purchase of Hospira in 2015. The Irungattukottai plant, which has around 1000 employees, makes beta-lactam antibiotics, while the Aurangabad facility, which has about 700 staff, was producing penicillin and penem active pharmaceutical ingredients. Pfizer noted that neither site manufactures products for the Indian market.

According to Pfizer, "both sites will immediately cease manufacturing with the intention to exit as soon as possible in 2019. The exact timing of the exit is to be determined." The company is set to expand operations at its Visakhapatnam facility, which will cater to the export markets, such as the US and Canada.

In addition, Pfizer is closing an R&D site in Taramani, Chennai that was also part of the Hospira deal, although spokesman Steven Danehy said this is unrelated to the shutdown of the two manufacturing plants. Danehy indicated that the around 150 staff at the facility were informed of the closure in the fourth quarter.