Closure of PharMEDium compounding business will cause nearly 300 layoffs in N.J.

By Eric Strauss
Dayton | Feb 21, 2020 at 12:36 pm

Health care distribution services company AmerisourceBergen is shutting down its PharMEDium business, including its Dayton facility, which could leave more than 285 New Jerseyans out of work.

According to a federal WARN notice, the closure of the Dayton facility results from a corporate decision to exit the pharmaceutical compounding business, resulting in the ceasing of all commercial and administrative operations tied to the business.

“In light of the increased regulatory and commercial challenges, coupled with the difficulty of making progress on remediation and continued financial burden, AmerisourceBergen has made the decision to close the PharMEDium business,” Francesca Gunning, a company spokesperson, told ROI-NJ. “While we are still formulating a plan to close the business, we expect production to cease immediately and operations to end in 2020. We have notified approximately 285 associates about position impacts and redeployment opportunities in our Dayton office.”

The 287 affected employees include pharmacy techs, inspectors, supervisors and others, according to the WARN notice. The notice includes a layoff date of April 20.

“The contribution of our PharMEDium associates is greatly appreciated, and this decision was not made lightly,” Gunning said. “We are encouraging impacted associates to apply for positions of interest within our organization, and all eligible associates will be offered severance benefits, as well as career support services.”

According to AmerisourceBergen’s late January earnings report, the New Jersey facility had suspended production that month pending air handling and filtration updates — one reason cited for the parent company’s decision.

Published reports said the closure of the Illinois-based unit had been preceded by safety issues and operational shutdowns at various plants. The closure could cost 1,000 total employees their jobs nationwide, reports said.

The company had paid $2.6 billion for PharMEDium in 2015.

WARN notices normally cover mass layoffs or facility closings as part of the Worker Adjustment and Retraining Notification Act of 1989.

Eric Strauss | estrauss@roi-nj.com | @acerimrat