Friday, November 9, 2012

Local drug firms to cut 790 jobs as a result of deadly meningitis outbreak


Date: Friday, November 9, 2012, 6:43am EST - Last Modified: Friday, November 9, 2012, 11:16am EST
Ameridose LLC, an affiliate of the drug-compounding pharmacy at the center of a deadly fungal meningitis outbreak in the United States, is cutting 650 positions as it grapples with an indefinite closure following regulatory scrutiny of its sterilization practices.
According to the Boston Globe, Ameridose employees have been notified of their pending termination from the company, effective Friday.
“While we continue to expect to resume operations, we have now determined that because of the continued inspection by state and federal authorities it may be necessary to resume operations at a reduced level,” read a letter, cited by the Globe, to affected workers from Ameridose’s director of human resources, Geri Weinstein.
In addition to the 650 workers at Ameridose, which is based in Westborough and is a major supplier of injectible drugs to medical care providers nationally, another 140 workers at another affiliate, Medical Sales Management in Framingham, also will lose their jobs as a result of the investigations and related closures. Both companies share owners with the New England Compounding Center, the Framingham-based drug maker at the root of the fungal meningitis outbreak that has already killed 31 people and infected hundreds more.
“It was the Company’s expectation that the suspension of operations would be temporary in nature and that we would be able to fully resume operations in a short time period,” Weinstein's letter continued, according to the Globe.
Ameridose voluntarily closed Oct. 10 following the meningitis outbreak to ensure that its practices were in line with state and federal regulations specific to the drug-compounding industry. According to an Ameridose employee at the time, the move was intended to strengthen the companies operations and enable it to become a “best in class” producer and distributor of products within this specialized niche in the drug-development industry

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