Sanofi plans to let go of all its employees at its manufacturing facilities near Hyderbad, following an operations review.
According to Reuters, the decision for French drug maker Sanofi to let go of all employees at its two Indian vaccine plants follows the firm’s failure to win a UNICEF contract. The article outlined around 800 members of staff could be affected by the decision and said the Sanofi sources are not being named due to confidentiality.
“Over the last few years, the COVID-19 pandemic has accelerated the speed at which the healthcare environment has evolved both in India and globally. In particular, new pharmaceutical manufacturers have established themselves and increased the overall supply capacity for both vaccines and medicines,” a spokesperson for Sanofi India told us.
“As a result, globally, Sanofi has had to adapt its strategy and portfolio to these trends. As some activities at our Medchal and Muppireddypally sites are no longer viable, a Voluntary Retirement Scheme (VRS) has been launched and is being offered to all employees of the sites on voluntary basis only. We are fully committed to supporting our employees as we work through the details.”
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The two facilities, which Sanofi acquired from Shantha Biotechnics between 2009 and 2013, were not selected by UNICEF to supply Shan-5, a vaccine against tetanus, whooping cough, hepatitis B and influenza type B, and diphtheria. Shan-5 experienced regulatory challenges for quality issues over ten years ago, after the World Health Organization (WHO) and the United Nations (UN) agency voiced concerns.
The two plants located close to Hyderbad produce vaccines against hepatitis B, diphtheria, and tetanus. Furthermore, the Medchal and Muppireddypally facilities also have packaging capabilities for insulin.
The publication said the spokesperson told them “there is no plan to sell any asset at this stage”, but the sources did not rule out that the facilities could be put up for sale at a later date. For now, the drugmaker anticipates transferring the packaging of insulin and injectable devices to another site, which has not yet been chosen.
The company said it will accomplish all its current supply commitments to the Indian government.
“This business decision though, does not change Sanofi’s long-term commitment of nearly seven decades in India. As a long-term and responsible partner to the Government of India, we will continue to fulfill all our current supply commitments,” the spokesperson said.
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