Novartis closing site in Broomfield over next two years

BROOMFIELD — Switzerland-based Novartis on Monday said it is closing its pharmaceutical manufacturing site in Broomfield due to price drops caused by increased competition in the U.S., affecting approximately 450 employees working at 2555 W. Midway.

Novartis spokesman Eric Althoff said the site will be closed in phases over a two-year period. Production of generic solids for the pharmaceutical industry is expected to cease in Broomfield by fourth quarter 2019.

The company will consolidate commercial production of its generic solids portfolio at its manufacturing site in Wilson, N.C.Althoff said associates may apply for other open positions at Novartis. He said those laid off will be offered a severance package aligned with the company policy.  In addition, Novartis will provide outplacement services, he said.

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Citing double-digit price erosion caused by customer consolidation and increased competition taking place within the U.S. generic drug market, Novartis said it is experiencing “above-average pricing pressure in its U.S. portfolio.

“ While this was a strategic choice made to optimize our manufacturing infrastructure, it was a very difficult decision as the closure affects approximately 450 employees at the Broomfield site,” the company said in a prepared statement. Novartis still employs more than 23,000 people at 24 sites across the country.