Teva closes Cidra plant

Executive Summary

Teva announces Aug. 23 that it will cease production at its Cidra, Puerto Rico manufacturing facility in the fourth quarter as part of a "globalization rationalization strategy." During a recent earnings call, Teva said it wanted to "significantly reduce complexity" at the facility, which was inherited through its acquisition of Ivax, due to repeated problems (1"The Pink Sheet" Aug. 14, 2006, p. 7). The facility currently employs 550 personnel and originally manufactured 50 products, the majority of which Teva says have been transferred to other sites. The company anticipates the closure will result in approximately $45 mil. in cost savings in 2007...