Merck to stop making APIs at Pennsylvania site and cut 300 jobs by 2024
In 2024, Merck will discontinue its manufacturing of active pharmaceutical ingredients. And with that move, it will no longer need its Cherokee manufacturing site in Danville, PA.
The site will close when API production stops, the company said to Endpoints News in a statement emailed Thursday. The news was first reported by local newspaper The Daily Item Wednesday. County commissioner Sam Schiccatano told the paper that the county was informed of the closure that afternoon. The plant is one of the area’s largest employers.
The site makes imipenem nonsterile and cilastatin nonsterile for Primaxin/Tienam and Recarbrio, as well as ertapenem sodium for Invanz. Once the site closes, it will use its already-existing network of API manufacturers to make the drug substance.
“We will start discontinuation of API manufacturing in 2024 which will lead to the ultimate closure of the Cherokee manufacturing site,” the email said. “Currently, we do not know the ultimate disposition of the site.”
There are 300 full-time employees set to be impacted by the move. Merck employs roughly 14,000 people in Pennsylvania, and has invested $3 billion in manufacturing operations there.
“It’s important to emphasize that the decision to cease operations is no reflection of the performance of our Cherokee employees,” the statement said. “Merck is committed to assisting and supporting employees at the site and provides separation benefits. Cherokee employees will have the opportunity to apply for other positions within the company with internal job transfer timing managed to ensure continued operation of the site.”
Merck bought the site from Cherokee Pharmaceuticals in 2008, who supplied Merck as a contract manufacturer. Merck bought back the site from the company to ensure that it would not be in sort supply of APIs.