Contract manufacturing giant Catalent has wrapped up the expansion of a clinical supply facility in the Waigaoqiao Free Trade Zone (FTZ) in Shanghai, China.
The company is also cutting 400 temporary and full-time workers in Bloomington, Indiana and more than 210 workers in Texas and Maryland.
In a statement from Bloomington, Indiana Mayor John Hamilton blames the layoffs on cooling demand for COVID-19 therapies. “My understanding is that in responding to the pandemic, Catalent significantly ramped up operations to accommodate the manufacturing of life-saving vaccines, but at present, the same volume of production is not necessary and thus is not economically sustainable as before,” Hamilton said.
After an inspection this summer, the FDA recommended that Catalent conduct voluntary quality improvements at the Bloomington site.
In addition, Catalent has halted construction on the Vaccine Manufacturing and Innovation Centre near Oxford in the United Kingdom, according to The Times. The company announced that it acquired the site in April. Slowing COVID-19 revenues are also reportedly to blame for the decision. In April, the company said it would invest £120 million in the facility’s construction.
The expansion of the clinical supply facility in Shanghai resulted in an increase of roughly 30,000 ft2, accommodating additional refrigerated and deep-frozen storage. The site also has room for additional secondary packaging equipment.
Catalent will commemorate the completion of the Shanghai site with two customer events scheduled for December 1 and 6. At the event, senior management will demonstrate the capabilities of the revamped clinical supply site and hold workshops on clinical supply management and new GMP policies.
Catalent has two clinical supply facility sites in Shanghai, with another in Tangzhen, outside the Free Trade Zone (FTZ).
The company offers a range of clinical supply management services in China, including comparator sourcing, demand-led supply, packaging, storage and global distribution. It also provides clinical returns and destruction.
Catalent has announced a series of expansions during the pandemic. In 2021, it expanded a biologics manufacturing site in Wisconsin. That same year, it also acquired Acorda’s manufacturing and packaging operations.