GlaxoSmithKline Sells Largest Polish Manufacturing Facility

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--GlaxoSmithKline plc (LSE/NYSE:GSK) is to sell its largest Polish manufacturing facility to French contract development and manufacturing organization (CDMO) Delpharm for an undisclosed sum.

The plant, which employs 700 people, will transfer entirely to Delpharm, which will continue to manufacture the existing GSK product line for a minimum of five years, while GSK will remain the owner and marketing authorization holder of these products. Poznań produces 81 different drugs across tablets, capsules, creams and ointments. Each day the factory produces 8.7 million tablets and 1.3 million capsules, which are exported to 131 countries around the world.

The deal comes as GSK is in the middle of its "two-year transformation" to prepare for separation of the GSK group into two new companies, one for prescription drugs and vaccines, and the new joint venture for over-the-counter products with Pfizer. Last October, Industrial Info reported on GSK and Pfizer (NYSE:PFE) (New York, New York) planning to merge their consumer healthcare divisions with combined sales of approximately £9.8 billion ($12.7 billion). For additional information, see October, 2019, article - GSK and Pfizer Merging Consumer Health Businesses.

GSK completed a very similar sale in March when it offloaded its Canadian plant at Mississauga and its 400 workers to Taiwanese CDMO Bora Pharmaceuticals. Like the Poznan deal, Bora confirmed that it intended to retain all employees after the change of ownership and had committed to producing GSK's products for a minimum of five years. In February, Industrial Info reported that GSK was laying off 720 workers at its Belgian vaccines manufacturing operation in Wavre. The cuts came from its manufacturing, R&D and support functions and most of the employees affected were managers. For additional information, see February 19, 2020, article--GlaxoSmithKline Axing 720 at Belgian Vaccines Hub.

Poznan will be Delpharm's eighteenth production plant and its first in Central and Eastern Europe. Delpharm has 12 production plants in France, two in Italy and one each in Belgium, Canada and the Netherlands. They produce a wide range of tablets, ampoules and vials with injectables, lyophilized products, suspensions, solutions, ointments and soft capsules.

"We have a talented and dedicated team whose high standards have ensured that the Poznań manufacturing site has been performing strongly," said Kamilla Niedzielska, Poznań site director for GSK. "Our priority is to support them through the transition and consult with them along the way, along with Delpharm. In the meantime, we remain wholly committed to maintaining operations and delivering continuity of supply for our patients and consumers."

Sébastien Aguettant, chief executive officer of Delpharm, said, "Further to our existing businesses with GSK Consumer Healthcare and Vaccines, we are delighted to expand our partnership with GSK Pharma with the acquisition of the Poznan sites which is our first step in Central and Eastern Europe."

GSK has been present in Poland for over 40 years, employing over 2,400 people in the country. Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.