Adare Pharma Solutions to close Northeast Philadelphia plant, leading to 136 layoffs.
Adare Pharma Solutions, a contract pharmaceutical developer and manufacturer, has announced the closure of its manufacturing plant in Northeast Philadelphia, resulting in the layoff of 136 employees. This decision was detailed in a notice filed with the Pennsylvania Department of Labor and Industry, marking a significant shift for the company roughly 16 months after relocating its headquarters from New Jersey to Philadelphia.
The company cited challenging economic conditions affecting its clients as the primary reason for this decision. Adare’s announcement comes as a surprise, particularly following the substantial investment made during its relocation. In August 2024, the company stated plans to invest .8 million to facilitate the move and expansion of its facilities. At that time, it projected the creation of 115 jobs to complement the existing workforce of approximately 200 employees across its two manufacturing and packaging sites.
The manufacturing facility set to close is located at 1100 Orthodox St. in the Frankford section of Philadelphia. According to the WARN Act notice, the shutdown will occur in stages between March 1 and June 30. This timeline indicates a gradual winding down of operations, allowing for potential transitional measures for affected employees.
Despite the impending layoffs, Adare has expressed its intent to help some displaced workers find employment within other Adare locations. The company’s corporate headquarters, situated at 7722 Dungan Rd., will remain operational, indicating that while the manufacturing aspect of the business faces cutbacks, the headquarters will continue to function.
It is noteworthy that Adare did not apply for the .4 million loan included in the state support package during its relocation, nor did it utilize associated workforce development grants. This has raised eyebrows among stakeholders, especially given the initial commitments made when Adare shifted its operations to Pennsylvania with the backing of million in state-sponsored assistance.
Adare Pharma Solutions is owned by private equity firms Thomas H. Lee Partners and Frazier Healthcare Partners. The company’s recent decisions reflect broader challenges within the pharmaceutical sector, where economic pressures can prompt swift operational changes. As Adare navigates this transition, it will be important to observe how it addresses the needs of its workforce and adapts to the evolving landscape of pharmaceutical manufacturing.
