Sir George dismayed by Lilly Statement
28 Jun 2006
The MP for North West Hants, Sir George Young, said he was dismayed by the statement of job losses and site closure by Eli Lilly.

"Eli Lilly are a major employer in the area, and a number of my constituents will lose their jobs when the manufacturing site closes in Basingstoke over the next 18 to 24 months. The work that was done at Basingstoke will move to Spain, Puerto Rico and Indianapolis, and that underlines the need for the UK economy to remain competitive in a fiercely competitive international market."

"I hope that the company will be generous to the 300 people who are to be made redundant, and recognise that the decision is not a reflection on the commitment of those who have been working at the plant. I also hope that they will do all they can to place them in suitable employment in the area."

"It is a relief that the Head Office with some 500 employees will stay, and I have had an assurance that Eli Lilly's sponsorship and involvement with the community in Basingstoke will continue."

"I understand that the site will be decommissioned and sold, and I hope that who ever buys it will invest in it and replace the jobs we have lost. I will be liaising with Maria Miller, in whose constituency the plant is located, to see if there is anything I can do to help."



This is the statement put out by Eli Lilly

Media statement


Wednesday 28 June - For Immediate Use


Lilly Proposes to Close Basingstoke Manufacturing Site


Research-based pharmaceutical company, Eli Lilly and Company Limited today announced that it is proposing to close its manufacturing site at Basingstoke. The proposal is subject to consultation with employees at the site.

Explaining the proposal, Andrew Hotchkiss, Managing Director of Lilly UK stated:

“Proposing this site closure has been extremely difficult as we are reluctant to lose the highly-skilled, highly-motivated people who work at the site.

“The announcement today is based on the fact that there is over-capacity in Lilly’s dry product manufacturing network.1 We have conducted an analysis of our requirements in the dry product area, and whilst these medicines remain important for Lilly, sales forecasts over the next decade indicate that we have too much capacity both now and in the long term. Additionally, the nature of our pipeline has become increasingly weighted toward injectable medicines.

“Lilly has a clear strategy, a strong medicines portfolio and pipeline, and no major patent expiries until after the end of this decade. However, as the environment for the pharmaceutical industry becomes more challenging, we must take difficult business decisions to allow us to realise our vision and long-term growth potential.”

The Basingstoke site, which has 445 employees and 111 contractors, currently manufactures medicines which include Zyprexa, a treatment for severe mental illness and Cialis, a treatment for erectile dysfunction. Today’s announcement and any subsequent decision will not have any impact on patients using Lilly medicines.

If the proposal to close the site goes forward, early estimates indicate that around 100 employees could be eligible for early retirement and a small number would be offered redeployment to roles at other Lilly sites. Approximately 300 employees would be made redundant.

Lilly will continue to have a strong presence in the UK, which includes its research facility in Windlesham, Surrey, a biotechnology manufacturing facility at Speke on Merseyside, and UK headquarters office in Basingstoke.

In addition to the manufacturing site at Basingstoke, Lilly is also consulting employees on separate proposals to close its R&D sites in Belgium and Germany.

ENDS
Notes to Editors:

1. Footnote (1) – Dry products refers to medicines which are produced in tablet or capsule form.
2. Lilly, a leading innovation-driven corporation, is developing a growing portfolio of first-in-class and best-in-class pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Indiana, Lilly provides answers – through medicines and information – for some of the world's most urgent medical needs. Additional information about Lilly is available at www.lilly.co.uk. Data from Lilly clinical trials is available at www.lillytrials.com.

Contact the Press Office For Further Information:

Erin Huntington or Dominic Wake: 01256 315 000
 
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