Israeli drugmaker Teva said yesterday it plans to close its manufacturing facility in Cidra, Puerto Rico, in the fourth quarter of this year, which it hopes will lead to cost savings of around $45 million in 2007.
The move falls under the group’s global rationalisation strategy, and is designed to boost efficiency, improve supply chain management and better its competitive positioning following its $7.4 billion purchase of US group Ivax in January.
The facility in Cidra was part of Ivax’ legacy, housing 550 employees and manufacturing around 50 products. Most of these products have already been transferred to other sites around the world, the group said, “improving service levels and further enhancing Teva's global leadership advantage.”
Teva is estimated to hold 12.8% of the global market for generics, ahead of Novartis subsidiary Sandoz with a little over 11%. Germany's Merck KGaA lies in third place with 5% of the market, with Iceland's Actavis advancing into fourth spot with 3.9% thanks to a string of acquisitions, including the generics business of US drugmaker Alpharma in December 2005.