SINGAPORE, December 8, 2021 / PRNewswire / – GSK today announced that it will cease manufacturing and outsource all amoxicillin production currently produced at its Quality Road site in Singapore. Amoxicillin is an active pharmaceutical ingredient (API) in GSK’s Augmentin product. This will result in the closure of the site, with manufacture at the site scheduled to cease by the end of 2024. This announcement will not affect the availability of GSK products in Singapore or elsewhere, or have an impact on other GSK operations in Singapore.
The Quality Road site was established in 1972 and has been in operation for almost 50 years. The cost of producing the API by GSK to Quality Road is now significantly higher than the cost of outsourcing production to another company. After careful consideration, it was concluded that API outsourcing is the best option for Augmentin to remain competitive and continue to be a growing brand in our general medicine portfolio. This portfolio is an important part of GSK’s global strategy, alongside the discovery, development and manufacture of innovative drugs. This is how we will continue to make the biggest difference for patients by Singapore and all over the world.
In 2024, we predict that 120 roles will be impacted. However, GSK will seek to mitigate this impact by working on alternative employment opportunities within GSK Singapore and the region that utilize the skill base of Quality Road employees, taking into account the timing of site closure activities, vacancies and additional investment activities. We will also work closely with our government, union and local industry partners to maximize external redeployment opportunities.
GSK continues to see Singapore as a strategic location for our business operations and remains committed to our long-standing presence in the country. For more than 60 years, GSK has been a significant contributor to the healthcare system and the biopharmaceutical manufacturing industry by Singapore. We are one of the biggest contributors to that of Singapore the biomedical sciences industry with investments exceeding S $ 1.5 billion.
Singapore remains one of GSK’s primary manufacturing and supply sites for our global pharmaceutical and vaccine business, and GSK continues to invest in advanced, high-value-added manufacturing in Singapore. In 2019, we announced a 130 million Singaporean dollars investment in Jurong to open new state-of-the-art manufacturing facilities, and we are continually exploring new investments for this site in the near term.
We continue to deploy innovative manufacturing technologies at Jurong, where we introduce new chemical entities for global markets for our innovation driven portfolio. In addition, we are creating a new strategic center in Jurong which will oversee external development and external manufacturing at the site, which will help enhance GSK’s next generation biopharmaceutical manufacturing capabilities.
About GSK in Singapore
GSK was the first global healthcare company to establish a presence in Singapore in 1959.
GSK is one of the main contributors to that of Singapore the biomedical sciences industry with investments exceeding S $ 1.5 billion, and we currently employ more than 1,500 people in Asia House’s global and regional business units and our manufacturing sites.
GSK Asia House is the home of our global General Practice (GM) and Emerging Markets (EM) businesses. It is also the regional headquarters of our Greater China and intercontinental (GCI).
GSK is a science-driven global healthcare company with a special focus: to help people do more, feel better, and live longer. For more information please visit www.gsk.com/about-us.
Caution regarding forward-looking statements
GSK cautions investors that all forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties which may cause actual results to differ materially from those projected. These factors include, but are not limited to, those described in the Company’s annual report on Form 20-F for 2020 and any impact of the COVID-19 pandemic.
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SOURCE GlaxoSmithKline Singapore