Amneal Pharmaceuticals to close LI facility, eliminate 220 jobs
The exterior of Amneal Pharmaceuticals LLC in Yaphank is pictured on Jan. 23, 2018. Credit: Barry Sloan
Drugmaker Amneal Pharmaceuticals Inc. plans to close its Hauppauge factory next year, eliminating 220 jobs, executives announced Wednesday.
The manufacturer of generic prescription drugs, which is headquartered in New Jersey, will transfer production from Hauppauge to a larger factory in South Yaphank and to other facilities around the globe, according to David Belian, a company spokesman.
He said some Amneal employees in South Yaphank will be laid off, but the company isn’t disclosing the number.
Between 800 and 900 people work at the giant factory and warehouse on Horseblock Road, which recently underwent another expansion. There are no plans to close that facility or a warehouse in South Yaphank where nine people work, Belian said.
The local job cuts are part of a restructuring plan announced Wednesday that is expected to save Amneal $50 million annually. The company is losing money because of increased competition, sales declines and lower drug prices, executives said in a securities filing.
Belian said the Hauppauge factory, which produces "oral solid" medicines, will shut down in the October-December 2020 period.
The affected Long Island employees will receive severance, as will 330 other Amneal workers at other locations in the United States, Europe and India. A packaging plant in East Hanover, New Jersey, is slated to close.
The severance payments will total between $10 million and $12 million, according to the securities filing.
Company co-founder Chintu Patel told Newsday in January 2018 the Hauppauge plant had 350 workers.
The spokesman said an offer of additional incentives by New York State and local governments would not keep the Hauppauge factory open. Amneal has received millions of dollars in aid from Empire State Development, the state's primary business-aid agency, the Brookhaven Town Industrial Development Agency, and the state Power Authority.
Amneal CEO Rob Stewart said: “We have decided to take immediate steps to realign our business infrastructure and cost base in an effort to align our company to better deal with the current business realities. As a responsible employer, we are committed to ... providing those who will be affected by these actions a comprehensive transition plan.”
Stewart said the projected cost savings would begin next year. He also said more cost-cutting could occur.
In addition, Amneal lowered its estimated profit for this year from $600 million — $650 million to $425 million — $475 million.
The company reported a loss of $125 million in the January-March period, compared with a profit of $52 million a year earlier. Revenue for the quarter totaled $446 million, a 62 percent gain, year over year, that was primarily due to the purchase of two other drugmakers.
For the year ended Dec. 31, Amneal lost $201 million on revenue of $1.7 billion.
Amneal shares closed down $2.45, or 36 percent, to $4.36 on the New York Stock Exchange.
CORRECTION
Amneal moved its warehouse from Commack to South Yaphank in late 2018 and now employs nine people there.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
'Why am I giving up my Friday night to listen to this?' A Newsday analysis shows the number of referees and umpires has declined 25.2% in Nassau and 18.1% in Suffolk since 2011-12. Officials and administrators say the main reason is spectator behavior. NewsdayTV's Carissa Kellman reports.
'Why am I giving up my Friday night to listen to this?' A Newsday analysis shows the number of referees and umpires has declined 25.2% in Nassau and 18.1% in Suffolk since 2011-12. Officials and administrators say the main reason is spectator behavior. NewsdayTV's Carissa Kellman reports.
