Teva Pharmaceutical Industries Ltd. announced today that as part of the company's global rationalization strategy, it will cease production at its manufacturing facility in Cidra, Puerto Rico, during the fourth quarter of 2006. This is designed to further improve efficiencies, supply chain management and competitive positioning following the acquisition of Ivax in January 2006.
The former Ivax facility at Cidra has approximately 550 employees and originally manufactured 50 products. The majority of these products have already been successfully transferred to other manufacturing facilities around the world resulting in improvements in service levels and further enhancing Teva's global leadership advantage. Teva through this action will achieve an estimated $45 million in cost savings in 2007.
Teva will work closely with employees and local authorities to ensure as seamless a transition as possible and to offer financial and placement assistance to those staff affected by the closure. Teva's API manufacturing facility in Puerto Rico is not affected by the closure, a Teva release said.