With net income down 26.7 percent for the first quarter of this year, Teva Pharmaceutical Industries, Ltd., announced Thursday morning that it will close its manufacturing and research facility in Sellersville, Bucks County, by 2017.
Teva is based in Israel, but its Americas headquarters is in North Wales, Montgomery County.
According to Teva's 2012 annual report filed with the U.S. Securities and Exchange Commission, the Sellersville facility had 472 employees as of the end of 2012. The SEC filing says that some research and development work is also conducted at the Sellersville plant. The company owns the facility and it covers 206,000 square feet, according to the SEC filing.
Teva chief executive officer Jeremy Levin, who took over a year ago, had said previously that one of his concerns about the company was that it might have too many facilities, some of which were acquired through corporate acquisitions.
In late September of 2011, Teva announced that it bought a brownfield site in Northeast Philadelphia and held a groundbreaking ceremony for a planned $300 million facility that would have handled packaging and computer operations, among other functions.
But with the stock price lagging, Teva's board changed the executive leadership, with Levin named on Jan. 1, 2012. Teva never did more than put a ceremonial shovel in the ground in Northeast and in December of 2012, it announced that it had "ceased" planning for that facility. A link to that PhillyPharma post on that is here.
In Thursday's conference call with stock market analysts, Levin noted that the company had previously said it would sell its factory in Irvine, Calif. The Irvine facility employed 403 people at the end of 2012, according to the annual report.
Teva is the world's leader in generic drug sales, but the competition is gaining in that phase of the pharmaceutical industry. In recent years, Teva has tried to diversify into brand-name drugs that it develops or are developed by companies it acquires. Those drugs, because they have patent protection and exclusivity in the market, bring in higher profits. That was the impetus in 2011 for the $6.8 billion purchase of Cephalon, which was based in Frazer.
For the first quarter ending March 31, Teva reported revenue of $4.901 billion compared to $5.102 billion for the same period in 2012, a decline of 3.9 percent. The 2013 first-quarter net income was $630 million compared to $859 million for the same period in 2012, a decline of 26.7 percent.