Sanofi Might Pull Down Shutters For Two Vaccine Plants In India

After Sanofi SA SNY failed to secure a UNICEF contract, the company is weighing closing operations at two of its vaccine-making facilities in Hyderabad, India, and plans to let go of all employees at the plants.
The decision could affect about 800 employees, Reuters reported citing two familiar sources, out of 5,000 employees in India.
The two plants manufacture vaccines against hepatitis B, diphtheria, and tetanus and have packaging facilities for insulin. The pandemic and raised capacity from other Indian drug makers hit the demand for Sanofi's products.
The facilities have struggled as Sanofi failed to win a UNICEF contract to supply Shan-5, a vaccine against diphtheria, tetanus, whooping cough, hepatitis B, and influenza type B.
The vaccine came under regulatory scrutiny for quality issues after the UN agency and the World Health Organization raised concerns.
While the spokesperson said, "there is no plan to sell any asset at this stage," the sources said a sale could be possible later.
The spokesperson said that Sanofi plans to transfer insulin packaging and related injectable devices to another site and is currently evaluating which site will support it.
Price Action: SNY shares are up 0.89% at $48.92 on the last check Monday.