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Drug firm Wockhardt on Saturday said it has tied up with various partners to roll out products in the US market with its Illinois-based manufacturing plant all set to relieve all workers in a phased manner as part of business restructuring in the US market.
The Mumbai-based company said it has engaged multiple US Food and Drug Administration (USFDA) approved manufacturing partners in the US market, after thorough due diligence and inspection of their facilities, to manufacture various products for sale in the US/ North America.
"The company is relieving all its staff who were directly engaged by our US subsidiary in its plant in connection with the manufacturing process in a phased manner and in full compliance with the applicable local laws," Wockhardt Ltd said in a regulatory filing.
This new arrangement is in the best interest of the company as it will help avoid the manufacturing and quality management cost completely resulting in significant savings in operating and overhead cost while allowing the management to completely focus on penetrating and expanding the market share of its products in US/ North America, it added.
The drug maker noted that it has entered into a Consent Decree with the US Department of Justice (DoJ) regarding the Illinois-based facility.
The plant is under the USFDA lens for various manufacturing lapses.
The signing of the Consent Decree resolves and settles all matters with the USFDA, whereby the Company shall stop all manufacturing activities at the plant for the present, Wockhardt said.
There is no financial compensation in the Consent Decree, it added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Sat, August 20 2022. 16:35 IST