Merck KGaA: Intention to close Lacassagne R&D and production site in Lyon, France

Pre-clinical research in France to be concentrated in Chilly-Mazarin

11-Jul-2003

Merck KGaA announced today that it has decided to launch a project to restructure its pharmaceutical activities in France, including the closure of its Lacassagne research and development (R&D) and production site in Lyon. The project has been presented to employee representatives, local management and employees in France prior to its public announcement today.

The recommendation for this project came as a result of two major independent restructuring and optimization studies covering production and supply-chain as well as pre-clinical R&D. The studies were initiated in 2002 and 2003 to enhance efficiency and realize synergies in Merck's Pharmaceutical business sector to secure the global competitiveness of Merck in these key areas.

Closing Lacassagne would affect a total of 320 positions. According to the project plan, pre-clinical R&D in the area of diabetes and its complications, conducted by 160 employees, would be terminated at this site by the end of 2004. As a consequence, Merck intends to refocus and concentrate research activities in France at its existing diabetes research center in Chilly-Mazarin near Paris. Non-clinical development activities would be shifted to existing centers within the Merck Group, where and if appropriate.

This step also comes as a consequence of Merck's decision to stop development of three early-stage diabetes projects, as already announced in May 2003. In spite of this setback, Merck will continue its diabetes research and will actively pursue clinical development in the area of diabetes.

According to the project plan, pharmaceutical production in Lacassagne, also accounting for 160 employees, would be closed by mid-2006. However, with its existing Semoy facility, Merck wants to keep France as the second-most important European production site for Ethical pharmaceuticals in the Merck Group.

General management of Merck in France and employee representatives have already met on several occasions and will negotiate the implications of this project for the employees. Merck in France remains committed to its social responsibility.

The project of closure of the site will most probably result in exceptional costs. These exceptionals are already part of the provisions that Merck announced in May 2003 and expects to book this year.

https://www.chemeurope.com/en/news/25247/merck-kgaa-intention-to-close-lacassagne-r-d-and-production-site-in-lyon-france.html