Alpharma Spending $30 Million at Baltimore Site After Closing Four Others

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Alpharma Corporation (NYSE: ALO) (Fort Lee, New Jersey) entered 2003 with four less manufacturing plants and plans to spend at least $30 million at another. In late December of 2002, the specialty pharmaceutical company, which manufactures both human and animal drug products, announced the closing of four animal health division facilities located in Hannibal Missouri, Lowell Arkansas, Parkville Australia, and Wrightstown New Jersey. A worldwide workforce reduction of 125 employees was also implemented as part of Alpharma's announced intent to improve margins and increase cash flow.

Meanwhile, as reported by Industrialinfo.com in October 2002, the company is spending $30 million on various upgrade projects at its manufacturing plant in Baltimore, Maryland. Some of the work was initiated by a Food and Drug Administration (FDA) report questioning the Baltimore facility's ability to meet good manufacturing practices (cGMP). With several million dollars already spent last year for immediate improvements, the FDA has yet to make a decision on the plan Alpharma submitted in October. The series of plant upgrade projects is expected to continue through 2004. The plant's production capacity of pills, liquid-dose pharmaceuticals and nasal sprays has decreased since the initial FDA visit in the fall of 2001, which Alpharma claims is responsible for a 15% drop in human pharmaceutical sales during the third quarter of 2002.