Viatris Restructures, Goodbye to Morgantown WV
Posted on 01/27/2021
Viatris Inc., the maker of the EpiPen, which is used to treat life-threatening allergic reactions won a major court battle. In November 2020, Mylan N.V. merged with Upjohn, Pfizer’s off-patent medicine division, to form Viatris. The U.S. District Court for the District of Kansas entered summary judgment in Mylan’s favor in the lawsuit brought against it by Sanofi related to its EpiPen products. For the past three years, Sanofi had pursued money damages and attempted to blame Mylan for Sanofi’s own failures in marketing Auvi-Q.
In November 2020, Viatris announced a significant global restructuring program in order to achieve synergies of US$ 1 billion over the next four years, or sooner. Viatris’ initiative is intended to reduce the company’s cost base by at least US$ 1 billion by the end of 2024 or sooner, with a significant portion of the reduction expected to be achieved within the first two years. The company expects to optimize its commercial capabilities and enabling functions, and close, downsize or divest up to 15 manufacturing facilities globally that are deemed to be no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products. As a result, Viatris expects that up to 20% of its global workforce of approximately 45,000 may be impacted upon completion of the restructuring initiative. The company identified five impacted sites in the latest announcement: its oral solid dose manufacturing facilities in Morgantown, West Virginia, Baldoyle, Ireland, and Caguas, Puerto Rico, and its Unit 11 and Unit 12 active pharmaceutical ingredient (API) manufacturing facilities in India.
In August 2017, Mylan reached a US$ 465 million settlement with the U.S. Justice Department (DOJ) for overcharging the U.S. government for EpiPens.
