Merck closes Cherokee Pharma plant
pharmafile | July 3, 2012 | News story | Manufacturing and Production | API, Cherokee Pharmaceuticals, Merck, manufacturing
Merck & Co has decided to close down part of a US plant operated by subsidiary Cherokee Pharmaceuticals after failing to find a buyer for the facility.
Around 30 people will lose their jobs as a result of the decision to close the contract fermentation unit at the plant in Riverside, Philadelphia, which manufactures active pharmaceutical ingredients (APIs) for antibiotic products such as Invanz (ertapenem) and Primaxin (imipenem and cilastatin).
The decision marks the latest chapter in what has been a rollercoaster ride for the facility’s workforce in recent years.
Merck originally sold the entire facility to outsourcing specialist PRWT in 2008 as part of a major revamp of its manufacturing network, along with a contract to make Merck APIs worth hundreds of millions of dollars over five years.
PRWT took over the plant with promises to make significant investments in equipment and capacity, but found it difficult to win additional contracts to fill the API capacity.
In 2010, Merck agreed to buy back the facility in order to secure supplies of the APIs made there, just as it announced the closure of eight other plants in yet another manufacturing revamp.
Last year, the firm said it intended to sell off the contract fermentation unit at Riverside, although it noted that production of the APIs used in Invanz and Primaxin would be unaffected by the move. A buyer reportedly expressed interest earlier this year but no deal was able to be struck.
The employees affected by the latest decision will be offered assistance in trying to find alternative employment, said Merck in a statement. Overall the Cherokee Pharma plant employs around 380 people.
Phil Taylor
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