170 jobs lost at Schering-Plough as drug sales fall

THE loss of 170 jobs at a large pharmaceutical plant is being blamed on rationalisation and a major fall in sales of an anti-cancer drug.

The jobs, some of which are contract positions, are to be shed within the next three months at the Schering-Plough plant in Brinny, Co Cork.

The 932-strong workforce was informed of the decision yesterday afternoon by the company’s managing director, Dr Coleman Casey.

The Schering-Plough Corporation, which has its headquarters in New Jersey, recently announced it was seeking a 10% reduction in wages worldwide as part of a rationalisation programme.

Dr Casey said the decision to introduce what will initially be a voluntary redundancy scheme at the company had been “made with great regret.”

He said the move was driven by a fall in sales and a 50% drop in market share for the company’s anti-cancer and anti-viral drugs, INTRON-A (alpha interferon) and PEG-INTRON.

Employees had been aware of a drop in sales for some time, despite extended patent protection for the PEG-INTRON brand which is used in the treatment of hepatitis-C, malignant melanoma and other cancers.

Dr Casey said the situation was “very difficult” given that Brinny has significantly grown over the years and successfully manufactured high quality products to meet expected market needs. The shortfall in sales had resulted in a large build up of products at the plant and Dr Casey said for the foreseeable future that would result in the closure of some buildings on site.

Schering-Plough began operating in Co Cork in 1986 and has expanded the plant considerably since then over the past 18 years.

SIPTU, which represents nearly 500 workers at the plant, said it would meet with management todayOK to discuss redundancy terms.

“There had been rumours of job losses for a long time, but the level of reduction was certainly more than we expected. We will be looking for the best possible package for our members,” said SIPTU branch secretary Eddie Mullins.

In the past, pharmaceutical industries have been generous in terms of paying severance packages. The industry norm has been around six weeks pay per year of service on top of statutory redundancy.

A spokesman for Tánaiste and Minister for Enterprise, Mary Harney, last night denied rumours that prior to Christmas she had asked the company to postpone the announcement for a few weeks, fearing it would be made the same week as Dairygold Co-Op said it was cutting 500 jobs. For contract worker Siobhan O’Neill, the news was very hard to take as she had lost her job at the GSI factory in Macroom two years ago and may now have to move to England.