Axe poised over 70 drug company jobs

Nov 10 2007 by Dave Black, The Journal

SCORES of jobs are set to be axed at a Northumberland drugs company in a bid to ensure its long-term future in the ultra-competitive global pharmaceutical market.

Bosses at the 400-employee Nicholas Piramal India Ltd (NPIL) plant in Morpeth have launched formal consultations with staff which could lead to up to 70 redundancies next year.

The cost-cutting move comes just 17 months after India-based NPIL Pharma acquired the former Searle manufacturing plant from its then owner, Pfizer.

Yesterday the company said the redundancies were required as part of financial savings aimed at underpinning the future competitiveness and viability of the Whalton Road site.

NPIL management say they are optimistic that much of the proposed reduction can be achieved through voluntary measures, although some compulsory redundancies are possible. Any job losses will be phased through 2008.

Last night the announcement was described as an economic blow to the area by Castle Morpeth Council leader, Peter Jackson.

He said: “This is regrettable news of significant job losses for the borough, particularly in view of the positive statements made by NPIL when they took over from Pfizer about their plans to retain jobs at the Morpeth site. We would hope that all efforts will be made to avoid compulsory redundancies.”

Since last year’s acquisition, NPIL has been transforming the Morpeth plant into a supplier of contract manufacturing and development services to the pharmaceutical industry.

Now the company says that, despite some successes in winning new contracts and business, it needs to act to ensure its future competitiveness in an increasingly tough global pharmaceutical sector. It says the 70 redundancies will affect both staff and management posts.

Last night Morpeth site leader, Aidan Walker, said: “NPIL Pharma is an important part of the local business community and our aim is to ensure the long-term viability of the Morpeth facility against an increasingly competitive global business background.

“It is always regrettable when decisions are made that affect the job security of individuals.

“ However, it is in no way a reflection of the talent and skills of our workforce.”

NPIL Pharma’s custom manufacturing business is one of the world’s top 10, with annual revenues of $250m. It has a major research and development and manufacturing capability in India and European and American centres of excellence in pharmaceutical development and production.

The Morpeth plant involves pharmaceutical intermediate formulation and small-scale manufacture, tablet and capsule manufacturing and large-scale packaging and distribution.