1,500 To Lose Jobs At Former Mylan Pharmaceutical Plant In Morgantown

This is a developing story and may be updated.

A pharmaceutical plant in Morgantown will close July 31 and leave 1,500 without jobs, company officials announced Friday. The facility, owned by Viatris, had been owned and operated by Mylan Pharmaceuticals — until a merger with Pfizer subsidiary Upjohn was finalized last month.

Employees learned of the plant’s closure on a morning phone call with a top company official.

Viatris offered more details of the downsizing in a Friday news release. The company said operations at 15 facilities across the globe will be affected.

“This announcement in no way reflects upon the company’s genuine appreciation for the commitment and work ethic of the employees at Chestnut Ridge,” Viatris CEO Michael Goettler said in a statement. “The phasing out of manufacturing operations at this facility was a decision Viatris did not take lightly. The site has been producing medicine in Morgantown since 1965 and paved the way for Mylan’s early growth.”

Goettler said the company was sharing the details of the closing and the targeted date to “work with federal, state and local leaders to try to identify alternatives for the site outside of the Viatris network that could potentially preserve as many jobs as possible.”

Officials with Viatris said the downsizing will not affect other operations in Morgantown, including a research and development facility.

Monongalia County Commissioner Tom Bloom said Mylan had long been a pillar of the community’s economy and other aspects of local culture.

“We jokingly say it’s Morgantown, Monongalia County and Mylan,” Bloom said. “They have been an integral part of many of the programs that have developed in our community.”

Bloom also said that the “fine print” of the merger had led him and other local officials to believe that there would be some restructuring that would affect the company’s long standing Morgantown operations. However, he said he did not expect such a huge number of layoffs this soon.

“We believed that we had three to five years to work with them to keep them there, Bloom said. “This quickly, this fast — during the holidays, during COVID — is just really difficult to take.”

Longtime West Virginia delegate and state senator-elect Mike Caputo of Marion County said he would work with other elected officials to try to convince Viatris they had made a bad decision in closing the Morgantown plant.

“The loss of these jobs is a devastating blow affecting more than 1,500 employees, their families and their communities. In the face of this massive pandemic, we need manufacturing facilities like Mylan more than ever in our region,” Caputo said in a statement.

Mylan, Pfizer Subsidiary Strike Deal to Create New Pharmaceutical Company

This is a developing story and may be updated.

Mylan Pharmaceuticals and a division of Pfizer have announced a deal that will create a new pharmaceutical company expected to bring in $19 billion-$20 billion in annual revenue. 

According to a news release, Mylan and Upjohn, the Pfizer subsidiary, hosted a Monday morning conference call with investors.

Aside from producing a wide variety of branded generic pharmaceuticals, Mylan is known for producing the EpiPen. Upjohn’s brand portfolio includes Zoloft, Xanax and Viagra.

Under the terms of the deal, which is to be structured as an all-stock, Reverse Morris Trust transaction, each Mylan share would be converted into one share of the new company.

Pfizer shareholders would own 57 percent of the combined new company, and Mylan shareholders would own 43 percent.

Current Mylan chairman Robert J. Coury will serve as executive chairman of the new company. Upjohn president Michael Goettler will serve as CEO and Rajiv Malik, current Mylan president, will serve as president. 

Ken Parks, currently CFO of Mylan, has agreed to depart the company at closing. Mylan CEO Heather Bresch, who is the 50-year-old daughter of U.S. Senator Joe Manchin of West Virginia, will retire as part of the deal.

Also Monday, Mylan announced an earnings report for the second quarter of 2019. The company reported total revenues of $2.85 billion, which it says is up two percent compared to the same period in the previous year.

Mylan was founded in 1951 as a drug distribution company based in White Sulphur Springs, West Virginia.

More than 3,000 people work at the company’s current Morgantown facilities. The company laid off more than 400 Morgantown employees — or about 15 percent of its operations there — in April 2018.

Mylan has not yet returned requests for comment about the future of its West Virginia operations. 

The as-of-yet named new company, which is expected to be finalized in mid-2020, will be incorporated in Delaware and run operations from Pittsburgh, Shanghai and Hyderabad, India.

 

W.Va. Participating in States' Lawsuit Over Generic Drugs

West Virginia has joined a federal lawsuit alleging generic drug manufacturers conspired to inflate and manipulate prices.

Attorney General Patrick Morrisey announced West Virginia’s participation with other states Monday. The lawsuit filed in U.S. District Court in Connecticut alleges 20 firms conspired to reduce competition and restrain trade relating to more than 100 drugs. They include treatments for diabetes, cancer and arthritis.

The lawsuit also names 15 senior executives responsible for pricing, sales and marketing as defendants. It asks for a finding that the defendants’ actions violated federal and state antitrust and consumer protection laws.

A company named in the lawsuit, Teva Pharmaceuticals USA, has denied any criminal behavior or civil liability. Mylan Pharmaceuticals is among other defendants.

The lawsuit seeks damages and court action to restore market competition.

Mylan Lays Off 15 Percent of West Virginia Workforce

A pharmaceuticals company has laid off 15 percent of its workforce at a West Virginia manufacturing facility.

Mylan Pharmaceuticals released a statement Friday saying the “right-sizing” is consistent with discussions with the U.S. Food and Drug Administration to continue operations. Mylan spokeswoman Christine Waller tells The Dominion Post that around 500 positions have been cut, leaving the West Virginia workforce at around 3,000.

In response to a question that asked if the layoffs were connected to FDA inspections of the plant, Waller said the goal was to reduce the site’s size and complexity.

The layoffs are effective immediately. The company is still in discussion with United Steel Workers Local 8-957 regarding separation packages for senior union members.

Union leaders were in meetings Friday and couldn’t be reached for comment.

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