Glaxosmithkline has announced plans to shut its antibiotics business at two UK sites with production shifting to Europe.
This week GSK agreed to sell rights to three antibiotic brands, including Zinnat, to Novartis’ Sandoz unit in a deal worth $500m.
But the deal is now set to lead to up to 200 job losses as GSK scales back its Barnard Castle site and winds down its Ulverston site completely.
GSK has agreed to supply Sandoz with the antibiotic for another four years as part of its agreement. Swiss-owned Sandoz will then transfer manufacturing to its own plants in Austria.
“At this time, and in the absence of any other alternative, GSK would propose to close the Ulverston site and to decommission the Barnard Castle Zinnat buildings,” Glaxosmithkline said. There had reportedly been hopes a buyer would want to maintain manufacturing in Ulverston.
The company said it was “providing support to potentially-affected employees and is committed to supporting the local communities affected by the potential closure of manufacturing facilities”.