Novartis to shutter Zolgensma plant, resulting in 275 layoffs 

The Basel, Switzerland–based Big Pharma company has decided to consolidate the manufacturing for its gene therapy Zolgensma (onasemnogene abeparvovec-xioi). Plants dedicated to producing Zolgensma were based in Libertyville, Illinois and Durham, North Carolina. The company has announced that it will close the former plant, ultimately eliminating 275 jobs. 

Novartis anticipates that the Libertyville site will remain operational until the end of 2023. 

The company also will provide 90-day notifications to employees at the Libertyville site and offer severance packages and other benefits. 

Novartis first warned that it planned to close the plant in late October. 

Earlier this year, Novartis also announced its plan to spin off its Sandoz generic and biosimilar division.  

Sales of the gene therapy Zolgensma declined in the third quarter of this year, with its use mostly constrained to infants with spinal muscular atrophy. According to Novartis, sales of gene therapy in the third quarter of 2022 were $319 million, representing a 16% decline from the previous quarter. 

In addition to reduced demand for the gene therapy, Novartis also notes that process improvements at the North Carolina site have bolstered manufacturing output.

Demand for Zolgensma could increase in the coming years. Novartis expects annual sales to eventually reach $1.5 billion to $2 billion. For that to happen, however, the company will need to win additional regulatory approvals for the gene therapy. 

The Libertyville site closure is part of a larger pattern. The company also announced that it would eliminate about 300 jobs in Dublin by the end of 2024. 

The company announced in June that it planned to eventually lay off 8,000 employees from its workforce, which recently exceeded 100,000. 

The company is also closing a Sandoz plant in Wilson, North Carolina, that produced tablets and capsules for the North American market. 

Novartis shares have had a volatile year on the New York Stock Exchange. So far this year, its stock price has fallen 3.12% to $85.13.