“Novartis Consumer Health implemented the third phase of restructuring at its manufacturing plant in Lincoln, Nebraska. Seventy-five positions have been eliminated, which impacted 44 associates and 31 open positions. Since announcing a three-phased restructure in April 2013, Novartis Consumer Health has strived to minimize the impact to associates by eliminating roles through attrition, vacancies and transfers,” spokeswoman Julie Masow told In-Pharmatechnologist.com.
A total of 144 associates have been laid off as a result of the restructuring plan since May 2013.
Background
In 2012, the company announced it would spend $120m to recall several OTC drugs and improve the facility where they were manufactured. As part of a Form 483 received by the company at the plant, FDA cited Novartis for failing to look into quality concerns raised by patients.
Novartis suspended production at the plant at the time of the 483. The plant accounts for about 2% of Novartis’ total sales.
In 2013, Novartis also spent $51m in exceptional expenses to remediate manufacturing issues at the site.
“As part of the company’s supply chain strategy, the facility remains focused on producing solid dose and powder forms of over-the-counter medicines like Excedrin and Theraflu. This has helped reduce complexity at the site and improve overall quality,” Masow told us.
Phase I of the restructuring plan was completed in May 2013, when 100 positions were eliminated, which impacted 73 associates and 27 open positions. Phase II was completed in January 2014 with 85 positions eliminated, which impacted 27 associates and 58 open positions, Masow said.
In April 2013, Novartis announced that it would be making changes to the Lincoln facility as a result of a new supply chain strategy that would reduce complexity at the site, she added.