MORGANTOWN, W.Va. — The dean of West Virginia University’s School of Pharmacy says multiple factors could have led to Viatris Inc.’s decision that will close the Morgantown drug manufacturing facility.
William Petros on Monday’s “MetroNews Talkline” explained the likely causes were changing consumer behaviors, as well as market pressures focused on increasing global market share and development capabilities.
“We’ve seen it in the brand drug industry for a number of years. You don’t see it as much in the generic drug industry,” he said. “Essentially, that’s what we’re seeing here: a consolidation of resources.”
Viatris Inc. on Friday announced plans to reduce up to 20% of its workforce as part of an effort to save at least $1 billion by 2024. The company will close, reduce or divest from up to 15 facilities.
The Morgantown manufacturing facility will close July 31, 2021, affecting 1,500 workers.
Petros said generic and prescription drug manufacturing is a balance between creating a profit and researching cures for diseases.
“Generic drugs, because they’ve almost become a commodity, they’re very inexpensive compared to the brand drugs that we have,” he said. “That is part and parcel part of the problem that we’re seeing that manufacturers aren’t making a lot of money right now, so we’re seeing a consolidation in the industry.”
Petros noted corporate strategies tend to involve moving production to markets where costs are lower but with higher security risks.
“Both active ingredients in the drugs and the solid doses form, the capsules, the tablets are more and more, so being made overseas and that could become a national security issue,” he said.