Ronkonkoma pharmaceuticals company Prodose to lay off dozens, company and state notice say
Prodose Inc. in Ronkokoma, which purchased the assets of the now defunct Spirit Pharmaceuticals LLC at the same location, plans to reduce its headcount, a state notice shows. Credit: Tom Lambui
Prodose, a Ronkonkoma manufacturer of store brand generic medications, said Thursday it plans to lay off dozens of workers after a state notice a week earlier said the company planned to lay off its entire workforce.
The state's Worker Adjustment and Retraining Notification bulletin posted Dec. 13 said 186 workers at Prodose Inc., a nascent maker of generic drugs for retailers located at 2004-02 Orville Drive North, would lose their jobs on Feb. 24.
Company officials said Prodose plans to reduce its headcount by 40 to 60 workers as the new operation evaluates its need for workers.
The state Labor Department said in a statement the company submitted a WARN with the state on Nov. 26. The agency did not comment on whether the total job losses would be less than what the notice showed.
The company, created by private equity firm Everstone Capital, based in Singapore, purchased the liquidated assets of the previous business at the property, Spirit Pharmaceuticals LLC, out of a foreclosure auction earlier this fall, said Vijay Alagappan, a managing director with the equity firm.
Spirit manufactured and packaged over-the-counter generic drugs for retailers, a line of business Prodose aims to continue.
"We don't know how many employees we need," he said.
Alagappan said Prodose, which officially took over the assets of the defunct Spirit Pharmaceuticals on Nov. 5, is in the process of reaching out to Spirit's customer base in the hopes of continuing those lines of business. If they can keep all of Spirit's customers, Alagappan said, there is chance they might be able to hold onto all employees, but the business anticipates some level of layoffs in late February.
"We are working with our customers to see if they will keep us as their suppliers," said Kunjal Joshi, senior vice president of business development at Prodose.
The state’s Worker Adjustment and Retraining Notification Act, or WARN, requires employers with 50 full-time employees or more to file notice of a mass layoff, relocation, or closing 90 days in advance.
In 2015, both the Islip Industrial Development Agency and Empire State Development, New York’s primary business-aid agency, approved nearly $2 million in tax breaks over 10 years for Spirit Pharmaceuticals in exchange for the creation of 147 jobs as part of a multimillion expansion project.
Both ESD and the Town of Islip said while incentives were approved by the agencies, benefits were never disbursed and deals were not finalized.
At the time, Spirit, then based in Centereach, had a total of 12 local workers.
The proposed $15 million project called for the construction of a 75,000-square-foot building south of Long Island MacArthur Airport, and the consolidation of Spirit’s Centereach office and warehouse operations into 55,000 square feet of rented space at 2004 Orville Drive North.
The company manufactured analgesics, laxatives, cough and cold medicines, sleep aids and nutritional supplements that are sold by retailers such as Dollar Tree and Dollar General, according to Newsday reports at the time.
In seeking tax aid, the company told the IDA it had considered relocating operations to South Carolina or New Jersey.
Prodose, a Ronkonkoma manufacturer of store brand generic medications, said Thursday it plans to lay off dozens of workers after a state notice a week earlier said the company planned to lay off its entire workforce.
The state's Worker Adjustment and Retraining Notification bulletin posted Dec. 13 said 186 workers at Prodose Inc., a nascent maker of generic drugs for retailers located at 2004-02 Orville Drive North, would lose their jobs on Feb. 24.
Company officials said Prodose plans to reduce its headcount by 40 to 60 workers as the new operation evaluates its need for workers.
The state Labor Department said in a statement the company submitted a WARN with the state on Nov. 26. The agency did not comment on whether the total job losses would be less than what the notice showed.
The company, created by private equity firm Everstone Capital, based in Singapore, purchased the liquidated assets of the previous business at the property, Spirit Pharmaceuticals LLC, out of a foreclosure auction earlier this fall, said Vijay Alagappan, a managing director with the equity firm.
Spirit manufactured and packaged over-the-counter generic drugs for retailers, a line of business Prodose aims to continue.
"We don't know how many employees we need," he said.
Alagappan said Prodose, which officially took over the assets of the defunct Spirit Pharmaceuticals on Nov. 5, is in the process of reaching out to Spirit's customer base in the hopes of continuing those lines of business. If they can keep all of Spirit's customers, Alagappan said, there is chance they might be able to hold onto all employees, but the business anticipates some level of layoffs in late February.
"We are working with our customers to see if they will keep us as their suppliers," said Kunjal Joshi, senior vice president of business development at Prodose.
The state’s Worker Adjustment and Retraining Notification Act, or WARN, requires employers with 50 full-time employees or more to file notice of a mass layoff, relocation, or closing 90 days in advance.
In 2015, both the Islip Industrial Development Agency and Empire State Development, New York’s primary business-aid agency, approved nearly $2 million in tax breaks over 10 years for Spirit Pharmaceuticals in exchange for the creation of 147 jobs as part of a multimillion expansion project.
Both ESD and the Town of Islip said while incentives were approved by the agencies, benefits were never disbursed and deals were not finalized.
At the time, Spirit, then based in Centereach, had a total of 12 local workers.
The proposed $15 million project called for the construction of a 75,000-square-foot building south of Long Island MacArthur Airport, and the consolidation of Spirit’s Centereach office and warehouse operations into 55,000 square feet of rented space at 2004 Orville Drive North.
The company manufactured analgesics, laxatives, cough and cold medicines, sleep aids and nutritional supplements that are sold by retailers such as Dollar Tree and Dollar General, according to Newsday reports at the time.
In seeking tax aid, the company told the IDA it had considered relocating operations to South Carolina or New Jersey.
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