Elan cuts 104 jobs
Following the recent decision to sell its drug manufacturing unit to Alkermes for $960 million, Elan is eliminating 104 jobs from a Pennsylvania facility that is part of the deal, according to a notice filed with the Pennsylvania Department of Labor.
The jobs will be gone next month and the facility is expected to be closed by September, an Elan spokeswoman told Pharmalot.
The last time Elan wanted to reduce its headcount, the executive team flew on a private jet from New York to San Francisco to eliminate 130 jobs, which was roughly 10% of its workforce. That costly move prompted intense criticism, especially since Elan had recently engaged in a brawl with some investors over strategy and spending.
Alkermes is buying the Elan Drug Technologies unit to obtain a chemical formulation and manufacturing business, along with a stake in two recently approved drugs, the Invega Sustenna treatment for schizophrenia and the Ampyra medication for multiple sclerosis.
The sale considerably shrinks the Elan headcount. Before the deal, Elan employed about 1,150 worldwide, including 670 in the unit being sold to Alkermes.