Viatris Says Restructuring To Impact 15 Manufacturing Facilities, Up To 20% Of Workforce

(RTTNews) - Viatris Inc. (VTRS) on Friday provided additional details of its previously disclosed multi-year global restructuring initiative, saying it plans to close, downsize or divest up to 15 manufacturing facilities globally.

The company expects up to 20 percent of its global workforce of about 45,000 may be impacted upon completion of the restructuring initiative. The workforce reductions at the impacted manufacturing sites are expected to occur in phases over the next few years. According to Viatris, the 15 manufacturing facilities are deemed to be no longer viable either due to surplus capacity, challenging market dynamics or a shift in its product portfolio toward more complex products.

The restructuring initiative is part of the company's previously announced roadmap to maximize long-term value creation. It expands on the restructuring program announced by Mylan earlier this year as part of its business transformation efforts.

Viatris expects the restructuring initiative to reduce its cost base by at least $1 billion by the end of 2024 or sooner, with a significant portion of the reduction expected to be achieved within the first two years.

The facilities that will be impacted by Friday's announcement include the company's oral solid dose manufacturing facilities in Morgantown, West Virginia; Baldoyle in Ireland; and Caguas in Puerto Rico; and Unit 11 and Unit 12 active pharmaceutical ingredient or API manufacturing facilities in India.

The company recently completed the divestiture of its injectables manufacturing site in Poland.