Teva won't build in Northeast Philly
Teva Pharmceuticals Ltd., said Monday that it will cease development plans for the property it bought last year on Red Lion Road in Northeast Philadelphia.
Teva won't build in Northeast Philly
David Sell
Teva Pharmaceuticals Ltd. said Monday that it had halted plans to build a $300 million facility on a former brownfield site on Red Lion Road in Northeast Philadelphia.
Distribution, warehousing and computer data functions were planned for the 1.1 million square feet of space spread over three connected buildings. Two hundred jobs were to be moved from existing Teva facilities, 200 new ones were planned, and thousands of temporary construction jobs would have been created.
“Teva recently announced that it would be reassessing its global network footprint,” a Teva spokeswoman said in a statement. “As such, we have made the decision to cease development plans for the proposed distribution center on Red Lion Road in Philadelphia. At this time we cannot elaborate further about plans for this property. Road improvements as committed along Red Lion Road continue and are scheduled to be completed in the spring. Teva remains committed to maintaining the property and working with local government.”
Teva is based in Israel, the company’s Americas headquarter is in North Wales, Montgomery County, and it has a manufacturing facility in Sellersville, Bucks County.
On Sept. 27, 2011, company officials and local politicians gathered with smiles on their faces and ceremonial shovels in their hands to break ground on the Bustleton site that had been used for decades by the Budd Co. to produce railroad cars.
“Not only are we celebrating the commencement of the new building, but starting today, Teva will be an official member of the city of Philadelphia,” Teva Americas chief executive officer and president Bill Marth said at the event.
But a lot has changed with Teva since then, including Marth’s departure from that role and, soon, the company. Shlomo Yanai, who approved the land purchase along with the board of directors, resigned as CEO on Jan. 1 and was replaced by Jeremy Levin on May 9.
Teva is the world’s leading seller of generic drugs, but with almost 80 percent of Americans using generic medication amid greater competition, Teva has struggled to increase profits.
The company’s stock price was $63 per share in March 2010, but closed Monday at 38.39, which is 99 cents above its 52-week low.
In May, Levin was asked at a Bernstein Research investment conference about the company’s facilities and he said, in part, “My question to the organization was, “We've got 74 facilities. How many do we need? Where should they be located? What are the core facilities that you need?’ “
On Nov. 30, Levin said the company would cut $1.5 billion to $2 billion in costs over the next five years, but he was criticized by some stock market analysts for not being specific about the nature of the cuts and how soon they would translate into better profits.
Teva’s Sellersville factory had job cuts and work shifted elsewhere in 2010.
“Over the years, I worked closely with Philadelphia officials and state leaders to encourage Teva to build a distribution center in Northeast Philadelphia. This is a disappointing corporate decision, and a loss for economic growth for the city and the region,” U.S. Rep. Allyson Y. Schwartz, whose district includes the Bustleton area, said in a statement.
“As we move forward, I stand ready to work with the local community and the city to ensure that a new use for the site can be found that both carries the support of the local community and can benefit the people and economy of Southeastern Pennsylvania.”
Mayor Nutter said at the 2011 ceremony that the project was “the biggest economic development project of our administration, and we could not be more excited.”
Deputy Mayor Alan Greenberger said Monday evening that Nutter had spoken with Teva officials after reading their statement and preferred to view the company’s decision as a “pause” in their plans, allowing for possible resumption.
“They are continuing to maintain the property and do the road improvements on Red Lion Road,” Greenberger said. “But they indicated to the mayor that they won’t go ahead right now with this project while they go about their businesswide reassessment.”
"which is why the red states are doing well and the blue ones are failing".
ummmm.... what planet are you living on. hahahaha. you gotta be kiddin me. the red states resemble third world countries. they are almost across the board the poorest, smallest middle class, least educated, highest crime states in the nation.— Ryan- Most likely use for the TEVA property is a new hospital as it is very difficult to built in those zoning challenging times. plus Abington backed out of buying Holy Redeemer due to abortion stand. There are plenty of would be suitors seeking a site for a hospital and medical facilty and the TEVA site would be a nice place to have one.— Aces high
- Guess they didn't want to get a bond from West Insurance.— TheodorePikul
- Why would TEVA build in USA ? in Phila ? Phila has about the highest taxes. Was it a government give back ? welfare for the rich ?— jtw
- What a shame! Hope for jobs and more tax income lost. The beautiful golf course torn down to become an empty lot. What were they thinking? Now it's an eyesore!
— pattie51 - Corporate greed at it's best. Remind me again why we ally with Israel. Oh yeh....New York Jews.— moretoit
- DA GREAT NORFEAST?— phillygtown
- Teva? Is it 1997?— tedsupreme
- @ Ryan -- Compare VA to MD, WI to MI, IA to IL, California to any. Texas, FL, PA all doing well...CA, NY, DETROIT. You and your union and Occupy friends surely enjoy the welfare, no jobs environment in the cesspools of "success." So stop posting and keep on sticking it to Da Man!— mdm711
- Teva is restructuring internationally on a massive scale. Regardless, only a total stone, cold, dope would locate their business inside the city limits of Philadelphia.....there is no upside for the business or the employees who would work there. Unions, taxation and an overall anti business climate make Philly one of the worst places in the country to locate a business...— kelprod2-freemarket
- Well, it's nice to see some fine folks on here rooting for Philly to have any successes. BTW, what's up with all the cranes and construction downtown?— phillyPeteZ
- Thanks for killing the golf course ya jerks.— thorshuffle
- I don't know what is so hard for you morons to understand, they are cutting jobs EVERYWHERE. Why would it be a surprise that they cancel this project? There are no jobs going anywhere from Teva, red or blue state. They are based in PA and that is not going to change, its a jewish company that wants to be near Jews i.e. not Texas or some craphole like that, but in NorthEast metros like Philly.— Capsulef
- They were given quite a bit of "financial incentives" ($4.7 Million of State funds and tax breaks)(http://thephilanews.com/teva-pharmaceuticals-comes-to-north-east-phila-16372.htm.) Do we get a refund, since this is now a non-project? Oh, I know - they will use THAT money to maintain the property and continue the road improvements...— dee99999
- Just another goof by nutter boys.— DEBBY1958
- Adolor
- Almac
- AmerisourceBergen
- AstraZeneca
- Auxilium
- Bayer
- Celgene
- Cephalon
- Endo
- GlaxoSmithKline
- Johnson & Johnson
- Kensey Nash
- Lannett
- Merck
- Pfizer
- Roche
- Sanofi-aventis
- Shire
- Stryker
- Synthes
- Teva
- ViroPharma
- West
- Centers for Disease Control and Prevention
- Centers for Medicare and Medicaid
- Clinical Trials
- Food and Drug Administration
- Office of Inspector General, Health and Human Services
- OIG Most-wanted list of fugitives
- Securities and Exchange Commission/Edgar filings
- U.S. Attorney's Office/Eastern Pennsylvania, health-care fraud
- U.S. Department of Health and Human Services
- BIO
- Jersey Association of Medical Equipment Services
- Pennsylvania Association of Medical Suppliers
- Pharmaceutical Research and Manufacturers of America
- Science Center
- American Health Lawyers Association
- Drug and Device Law
- Orange Book blog
- Taxpayers Against Fraud
- Bio Century
- Bio Space
- Cafe Pharma
- Financial Times
- In The Pipeline
- Monday Morning
- New York Times/Prescriptions
- Pharma Live
- Pharma Marketing
- Pharmalot
- The Placebo Effect
- Wall Street Journal/Health blog
