Gilead Science will let go of 114 employees based at its Morris Plains in New Jersey. However, they have purchased property in Southern California to build more manufacturing space.
Underwhelming response after Immunomedics acquisition
Gilead Sciences had huge expectations from their $21 billion acquisition of Immunomedics in 2020. In 2020, the market took the acquisition very positively and the drug cancer drug Trodelvy received great response. Its shares went up by 105% during pre-market trading. Moreover, Independent Data Safety Monitoring Committee recommended the Phase III ASCENT trial stop as the drug significantly improved overall survival.
Three-phase layoff plan
These changes are part of a master plan by Gilead as they want to increase biologics manufacturing. The company issued a WARN Act notice that there will be job cuts at a leased site in Morris Plains, New Jersey. It was previously designated as the headquarter of cancer drug developer Immunomedics. The lay offs will not take place immediately in a single phase. Although, it will occur in a three-phase process which will begin in April 2022. The reason for these job cuts is based on Gilead decision to half the manufacturing of Trodelvy at the site. However, there are plans to shift the employees to a larger facility in the Morris area. According to the plans, the new site could accommodate at least 500 people. This is a higher number than the company is currently employing.
Expansion in Southern California
Meanwhile, Gilead on Tuesday closed on the purchase of 27 acres in Oceanside, between Los Angeles and San Diego. They will build a manufacturing facility within next three to four years. However, there is no information on the drugs which will be produced at the new facility. Gilead already has offices in Oceanside that support clinical manufacturing. It processes development for the company and its cancer cell therapy unit Kite Pharma.
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