Hospira closes North Carolina plant over cost concerns
- Although Hospira's Clayton, North Carolina manufacturing facility had to be shut down in 2012 due to quality-concern issues, closure of this plant is not related to regulatory reasons, the company asserts. Rather, management has determined that the plant will not be cost effective long term, according to in-Pharmatechnologist.
- The four products that are manufactured at the site will either be outsourced, discontinued, or transferred to other Hospira sites.
- Hospira has invested more than $1 billion upgrading its comprehensive manufacturing network.
In April 2012, the FDA sent a warning letter to Hospira regarding its Clayton manufacturing facility, where Propofol, Liposyn, and Cleviprex emulsion products were being produced. However, by 2013, Hospira had successfully addressed those issues.
Meanwhile, Hopsira also invested $200 million to remediate at the Rocky Mountain, North Carolina location. Overall investment and remediation efforts are making it possible for the firm to close the Clayton plant as capacity has been increased in other parts of the network. Unfortunately, however, 250 jobs will be lost as a result of the shutdown.
- in-Pharma Techologist Cost, not compliance, behind Clayton closure, says Hospira