The year has started on a disheartening note for Pfizer’s employees in Aurangabad (Maharashtra) and Irungattukottai (Tamil Nadu), with the pharma MNC confirming that it will “exit” plants at both sites at the earliest in 2019.

The two plants had come into the Pfizer fold through its international acquisition of Hospira. Pfizer’s own vintage plant in Thane was also sold about three years ago.

“Pfizer has conducted a thorough evaluation of the IKKT (Irungattukottai) and Aurangabad sites and concluded that due to the significant long-term loss of product demand, manufacturing at these sites is not viable. As a result, Pfizer is announcing that both the Aurangabad and IKKT sites will immediately cease manufacturing with the intention to exit both sites as soon as possible in 2019,” said a Pfizer spokesperson.

The IKKT and Aurangabad plants employ approximately 1,000 and 700 people, respectively. A trade union source with Pfizer told BusinessLine that employees in Aurangabad have been informed of the decision, but compensation has not been discussed.

In its statement, Pfizer said: “Our focus is on our colleagues impacted by this decision and we are committed to keeping colleagues informed of the site exit process.”

The IKKT plant manufactured generic injectable cephalosporin, penems and penicillin for the US, EU and other global markets. It also produced branded Maxipime.

Aurangabad supports IKKT by supplying penems and penicillin. Until recently, both sites also provided products to Orchid Pharmaceuticals, the company said.

Rap from USFDA

Last year, the IKKT plant had “paused” production after it came in for a regulatory rap from the USFDA. Both plants are export-oriented sites and do not supply products to Pfizer’s operations in India.

The company’s other manufacturing sites, in Goa and Visakhapatnam, and its joint venture site in Ahmedabad, will remain operational, the spokesperson said.

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