US pharmaceutical giant, Pfizer, has recently confirmed the closure of its two Hospira manufacturing plant sites in India, one at Aurangabad (Maharashtra) and the other at Irungattukottai (Tamil Nadu). The IKKT and Aurangabad plants employ around 1,000 and 700 people, respectively. This decision has jeopardized those jobs and no compensation has been discussed so far.
The decision to close down these two plants was reached after a thorough evaluation that revealed long-term irrevocable losses making manufacturing unfeasible at these sites.
The IKKT plant used to manufacture generic injectable cephalosporin, penems and penicillin for the US, EU and other global markets. It also produced branded Maxipime. Aurangabad, on the other hand, supports IKKT by supplying penems and penicillin. Until recently, both sites also provided products to Orchid Pharmaceuticals. Neither plant makes products for domestic use in India.
The final blow to the company’s manufacturing came when the USFDA issued a warning letter in 2013, particularly addressing the IKKT plant.
However, on a positive note, the company’s other manufacturing facilities in Goa and Vishakhapatnam, along with its joint venture site in Ahmedabad, will remain operational and the company plans to further expand its operations in these sites.