NEW HAVEN, Conn. – Alexion Pharmaceuticals Inc. will close its manufacturing facility in Smithfield, the company said Monday.
In a release announcing a restructuring in which Alexion will relocate its headquarters from New Haven, Conn., to Boston, the company also noted that it will consolidate its manufacturing facilities, resulting in the shutdown of the Smithfield plant.
Expanding Women’s Health in Newport
South County Health has expanded its award-winning Center for Women’s Health to Newport, offering a…
Learn More
A representative from Alexion said the company is laying off aproximately 250 employees from the Smithfiled plant. Globally, Alexion expects to reduce its employment by 20 percent, about 600 workers. In the 2017 PBN Book of Lists, Alexion was reported to have 300 employees at the Smithfild site.
Alexion expects to pay $80 million to $90 million in employee separation costs as a result of the corporate restructuring, $40 million to $60 million on relocating employees and $50 million to $80 million for contract terminations and “other costs.” The company expects to realize $270 million in pre-tax savings by 2019 as a result of the moves.
“These types of changes are difficult, and we recognize that they have a personal impact on people who have been dedicated to the mission of Alexion. We thank our employees for their contributions to the achievements of Alexion,” said Ludwig Hantson, CEO of Alexion. “While difficult, these changes were necessary to enable the company to deliver sustainable long-term performance to support our ability to continue to develop and deliver life-changing therapies for patients.”
“By streamlining our operations we will create a leaner organization with greater financial flexibility that is highly focused on delivering for patients, growing our rare disease business, and both leveraging our leadership in complement and pursuing disciplined business development to expand the pipeline,” said Hantson.
The release noted that, “Alexion has had a positive working relationship with the state of Rhode Island, however, the company is aligning its manufacturing facilities with its ongoing multi-product network manufacturing strategy, which utilizes Alexion’s manufacturing operations in the U.S. and Ireland, and manufacturing capacity through its manufacturing partners.”
“We are disappointed by today’s news regarding Alexion’s restructuring moves. Our number one priority is ensuring that every Rhode Islander currently employed at Alexion is able to transition to other work,” said R.I. Commerce Corp. Director of Communications, Matt Sheaff. “The Department of Labor and Training will be working with Alexion officials on re-employment of their employees and the Commerce Corporation will be working with them on repurposing the facility.”
The company said the moves are meant to “re-align the global organization with its refocused corporate strategy.”
Alexion plans to relocate its headquarters by mid-2018, moving 400 positions to the Boston area.
“Alexion’s 25-year history began in New Haven, and Connecticut remains a critical part of our future. We value our relationship with the state of Connecticut, and our New Haven-based research team is critical to growing and strengthening Alexion’s leadership in complement, which will allow us to fulfill our mission of serving patients and families with rare and ultra-rare diseases,” said Hantson.
The company intends to retain 450 jobs in New Haven, including employees working in the research and process development laboratories, the clinical supply and quality teams, nurse case management and enterprise business services.
The company shook up its management in December 2016. The company also broke ground on a $200 million expansion of its Smithfield site in July 2016. However, the expansion was not expected to increase the number of jobs at the site.
A spokeswoman from Alexion said that the project had not been completed, but that the company planned to complete the project with the intention of selling the facility. The work at the facility will be phased out starting at the end of 2017 with a plan to sell the property by June 2018, the same time the company expects to finish its wind-down of the operation.
Chris Bergenheim is the PBN web editor.
From reported groundbreaking and job creation in Smithfield, to holding them up as an example of the state’s economic development through private investment, to 37% increase in sales, to we are out of here and moving to Boston, all in a little over a year…