Gov. Justice says Viatris is committed to working with him to find a new operator to replace Mylan facility & preserve current jobs

Monongalia

UPDATE (12/11/20 3:46 p.m.)

MORGANTOWN, W.Va. – West Virginia Gov. Jim Justice released a statement on Friday, following a call he had with the management team at Viatris regarding the announced closure of the Morgantown Mylan Facility.

In his statement, Gov. Justice said Viatris stands by their decision to close the facility, but has also committed to working with Justice to find a new operator for the facility and preserves as many of those jobs as possible.

Read Gov. Justice’s full statment below:

“I’d like to offer my thanks to the Viatris management team for getting on the phone with me today. On the call, the very first thing I did was express my disappointment that we didn’t know about their plans to close the Morgantown manufacturing facility. We were given no notice that there was even a problem, and nobody came to me to say ‘This is what we need to keep going.’

“From there, I offered to do anything and everything possible from the State’s perspective to change their decision and save these jobs. I asked if there was anything the state could do, but the management team told me that there was nothing we could do for them to reverse course.

“I also asked whether there was anything I could do with the federal government, along the lines of federal emergency powers, to prevent this. The management team told me they tried to explore this option themselves, but that they were unsuccessful.

“With these options exhausted, the Viatris team committed to working with us to find a new operator for the facility to preserve as many of these jobs as possible. As a business guy, I know this is not a commitment to be taken lightly. This task will take a lot of work. So I asked them, specifically, whether they really plan to honor their commitment, and they told me that I had their word that they would do all they could.

“In the meantime, I will commit all the manpower and resources we have to preserve these jobs. They mean so much to the community of Morgantown and our state as a whole. Cathy and I send our prayers to the families affected by this decision today and remain hopeful for a solution in the next seven months.”

Gov. Jim Justice

UPDATE (12/11/20 12:30 p.m.)

MORGANTOWN, W.Va. – During West Virginia Gov. Jim Justice’s virtual COVID-19 briefing on Friday, he spoke about the closure of the Mylan facility, calling the decision “super devastating.”

Gov. Justice said he was made aware of the planned closure on Thursday, which will take place by July, 31, 2021. Gov. Justice stated that the approximately 1,500 jobs being lost with the closure of the facility is “a shame beyond belief.”

Justice spoke about how sudden the news of the closure came saying it came “out of the blue” on Thursday night.

The governor said immediately following his briefing on Friday, he has a scheduled call with the management team of Viatris in hopes of trying to come up with some option to save the 1,500 jobs that are going to be lost.

Justice said he be believes there is a real shot and “lots of heavy lifting to be done,” but that he “has to think that there has got to be some way to save those jobs.”

The Governor ended his remarks by saying “The Mylan announcement was just super devastating.”

Watch Gov. Justice’s full remarks on the announcement in the video player below:

ORIGINAL (12/11/20 9:13 a.m.)

MORGANTOWN, W.Va. – On Friday the company Viatris released a statement announcing the planned closure of the Mylan facility located on Chestnut Ridge Road in Morgantown.

In the statement, officials with Viatris stated that as part of its “global restructuring initiative,” the company has announced plans to optimize its commercial capabilities and enabling functions, and close, downsize or divest up to 15 manufacturing facilities globally that are “deemed to be no longer viable due to either surplus capacity, challenging market dynamics or a shift in product portfolio toward more complex products.” Among those locations is the Mylan plant in Morgantown, according to the release.

Viatris stated that it intends to shut down manufacturing operations at the facility by mid-2021.

When Mylan and Pfizer merged last year, they announced that the name of the new company to be formed by the planned combination of Mylan and Upjohn, a division of Pfizer, would be Viatris.

Below is the company’s full statement on the closure of the Mylan facility:

Today Viatris announced additional details of its previously disclosed global restructuring initiative designed to ensure the new company is set up to achieve its mission, deliver sustainable value to patients, customers, shareholders and other stakeholders, and meet its financial commitments.

As part of this initiative, Viatris announced plans to optimize its commercial capabilities and enabling functions, and close, downsize or divest up to 15 manufacturing facilities globally that are deemed to be no longer viable due to either surplus capacity, challenging market dynamics or a shift in product portfolio toward more complex products. Among the sites impacted is the company’s Morgantown Chestnut Ridge oral solid dose manufacturing facility.

Viatris intends to close down manufacturing operations at this facility by mid-2021. However, there will be no immediate employee reductions at the site. It is anticipated that the majority of production will continue for the next seven months, ending no later than July 31, 2021 and that the majority of employees impacted will remain employed until that time, when they will be offered comprehensive separation packages.

Following the closure, Viatris will still maintain a significant workforce in Morgantown, including at its Research and Development Center, one of the company’s two global centers of excellence for R&D. This Center is focused on delivering world-class scientific innovation, technology and research. The team at this facility has played a critical role in some of the company’s most important scientific achievements and will continue to do so as Viatris expands its pipeline of complex medicines. Certain other key business and administrative support functions will also continue to operate within Morgantown.

Viatris CEO Michael Goettler said, “This announcement in no way reflects upon the company’s genuine appreciation for the commitment and work ethic of the employees at Chestnut Ridge. The phasing out of manufacturing operations at this facility was a decision Viatris did not take lightly. The site has been producing medicine in Morgantown since 1965 and paved the way for Mylan’s early growth. We are sharing the details of this announcement now in order to provide as much time as possible prior to the closing date to work with federal, state and local leaders to try to identify alternatives for the site outside of the Viatris network that could potentially preserve as many jobs as possible. In the meantime, we remain committed to treating those impacted fairly and with respect.”

Forward-Looking Statements

This communication includes forward-looking statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include that the restructuring initiative is designed to ensure the new company is set up to achieve its mission, deliver sustainable value to patients, customers, shareholders and other stakeholders, and meet its financial commitments; Viatris Inc. (“Viatris”) plans to optimize its commercial capabilities and enabling functions, and close, downsize or divest up to 15 manufacturing facilities globally that are deemed to be no longer viable due to either surplus capacity, challenging market dynamics or a shift in product portfolio toward more complex products; Viatris intends to close down manufacturing operations at its Morgantown Chestnut Ridge OSD manufacturing facility by mid-2021; anticipated timing and plans related to the closure and continued operations; the continued expansion of Viatris’ pipeline of complex medicines; and potential alternatives for the site. Because forward-looking statements inherently involve risks and uncertainties, actual future results may differ materially from those expressed or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to: the potential impact of public health outbreaks, epidemics and pandemics, including the ongoing challenges and uncertainties posed by the COVID-19 pandemic; the integration of Mylan N.V. (“Mylan”) and Pfizer Inc.’s Upjohn business (the “Upjohn Business”) being more difficult, time consuming or costly than expected; the possibility that Viatris may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the transaction pursuant to which Mylan combined with the Upjohn Business in a Reverse Morris Trust transaction (the “Combination”) and Upjohn Inc. (“Upjohn”) became the parent entity of the combined Upjohn Business and Mylan business and was renamed Viatris effective as of the closing of the Combination within the expected timeframe or at all or to successfully integrate Mylan and the Upjohn Business; uncertainties and matters beyond the control of management; and the other risks described in the Registration Statement on Form S-4, as amended, which includes a proxy statement/prospectus, which was filed by Upjohn with the Securities and Exchange Commission (“SEC”) on October 25, 2019 and declared effective by the SEC on February 13, 2020, the Registration Statement on Form 10, which includes an information statement, which was filed by Upjohn with the SEC on June 12, 2020 and declared effective by the SEC on June 30, 2020 and the final information statement, dated August 6, 2020, which is attached as Exhibit 99.1 to Upjohn’s Current Report on Form 8-K filed on August 6, 2020. Viatris routinely posts information that may be important to investors on its website at investor.viatris.com and uses that website as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD). Viatris undertakes no obligation to update these statements for revisions or changes after the date of this communication other than as required by law.


U.S. Representative of West Virginia’s 1st Congressional District David McKinley released a statement on social media Friday morning in response to the announcement of the planned closure of the Mylan facility. In his statement, Rep. McKinley called the news “extremely disappointing.” His full statement is below.

Rep. David McKinley

“The news that Viatris will be closing its manufacturing facility in Morgantown next year is extremely disappointing, all the more so given the company’s long history in West Virginia. Mike Puskar started Mylan from nothing and grew it to be a global leader. The Morgantown facility has been part of that heritage from nearly the beginning.  At a time when we should be focusing on bringing manufacturing to America and securing our domestic pharmaceutical supply chain, this decision is a reminder of the challenges we face. Our thoughts are with the families of the 1500 workers who will be impacted. We will do everything we can to help them through this difficult time.”

U.S. Representative David McKinley

West Virginia Delegate and State Senator-elect also released the following statement in response to the Mylan closure announcement on Friday:

Mike Caputo (D – Marion)

“The loss of these jobs is a devastating blow affecting more than 1,500 employees, their families and their communities. In the face of this massive pandemic, we need manufacturing facilities like Mylan more than ever in our region. As a delegate and senator-elect, I will do everything within my power – including working with our legislative delegation, the governor, our representatives in Congress, and the United Steelworkers, which represents Mylan employees — to convince company officials that closing this facility is the wrong choice. I will urge Senators Manchin and Capito to bring us together as a SWAT team to quickly address this. We’ve weathered four years of empty promises from the White House about jobs that have never come to West Virginia. It is my hope that Governor Justice can leverage his close personal relationship with President Trump to work on reversing the economic freefall our state has been experiencing at the hands of billion-dollar corporations and help us save these Mylan jobs. I also expect that Senator Manchin will be reaching out to President-elect Biden’s administration to provide assistance moving forward.”

Mike Caputo (D – Marion)

U.S. Senator Shelley Moore Capito (R-W.Va.) released the following statement in regards to the news about the closure of the Mylan facility:

Senator Shelley Moore Capito (R-WV)

“I’m incredibly disappointed to learn that Viatris’ Morgantown plant will be ending its manufacturing operations by July 2021. This is devastating news for the hundreds of hardworking individuals who worked at Mylan that make up the plant’s workforce and the entire community—especially during the holiday season. I will continue to do whatever I can to help the community—whether it’s working with partners at the federal, state, and local levels, to attract new investment to the area or assisting those who have been impacted by the closure.”

U.S. Senator Shelley Moore Capito (R-W.Va.)

West Virginia University’s Bureau of Business and Economic’s Director John Deskins issued a statement in response to the Mylan announcement, saying the “major blow” to the regional economy will be spread beyond job loss. Read his full statement below:

John Deskins

“This represents a major blow to the regional economy. The 1,500 layoffs in and of themselves are a major loss to the North Central region, which has around 110,000 jobs in total. But given the facts that this is an exporting industry that brings dollars into the region, and that many of these jobs are well paying and high skilled, the loss will create significant ripple effects throughout the region. Ultimately this will create further losses in employment, spending, and tax revenue. It will also damage the housing market in the Morgantown area. Ultimately it would probably take at least a couple of years to recover from this loss of this magnitude, aside from concerns associated with the pandemic.”

John Deskins, director, WVU Bureau of Business and Economics 

The President of the West Virginia Manufacturers Association, Rebecca McPhail issued the following statement on the announced closure of the Mylan Facility:

“Our hearts go out to those workers who learned just today that their jobs will be ending next year. Any loss of manufacturing jobs in West Virginia is devastating, but the closure of the Mylan facility at Chestnut Ridge means losing some 1,500 jobs next year, and that is a crushing blow. We are encouraged the new owner of the Mylan plant, Viatris, has pledged to continue operating some of its other West Virginia facilities and preserving those jobs. The WVMA commits to work with local leaders, the Governor, Department of Commerce and any other stakeholders to bring new manufacturing investment and job opportunities and preserve our existing industrial base here in the Mountain State.”

West Virginia Manufacturers Association President Rebecca McPhail 

U.S Senator Joe Manchin (D-W.Va.) issued the following statement on Friday in response to the announced closure of the Mylan facility in Morgantown:

Senator Joe Manchin (D-WV)

“Today’s announcement by Viatris is heartbreaking news for 1,500 workers and their families right before the holidays. While the decision has been made as part of a global restructuring initiative, it is incredibly unfortunate for a company founded in West Virginia to close any of its locations in the state. It’s my understanding that Viatris will maintain their research and development operations in Morgantown, but the closure of the manufacturing facility by July 31st and the loss of these jobs for the region is devastating. I will work with city, county and state leaders, Viatris, and all other parties to find alternatives to keep these West Virginians employed.”

U.S Senator Joe Manchin (D-W.Va.)

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