Affiliate of meningitis-linked firm initiates mass layoffs

BOSTON Fri Nov 9, 2012 9:47am EST

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BOSTON (Reuters) - Ameridose LLC, an affiliate of the New England Compounding Center at the heart of the deadly U.S. meningitis outbreak, is laying off about 90 percent of its workforce.

The action follows a suspension of its operations amid concerns about the sterility of its drug-mixing practices.

The Westborough, Massachusetts-based company notified employees in a letter on Friday that while it expects to resume operations at some point, "we have now determined that because of the continued inspection by state and federal authorities it may be necessary to resume operations at a reduced level."

Ameridose was closed on October 10 to allow state and federal investigators to inspect its facilities. The company is scheduled to remain closed until November 19. Ameridose has the same owners as NECC, which distributed a tainted steroid that has been linked with 31 deaths.

About 650 employees at Ameridose will be affected, as well as 140 employees at Medical Sales Management, a company which provides sales, technology and human resources support to Ameridose and is owned by the same people. About 200 of the layoffs will be permanent, according to the company.

The layoffs will become effective as of November 30.

"In our current circumstances, our business prospects are very difficult to predict, and it is our hope that your layoff will be temporary and that you will be brought back to work," the letter from the company's human resources director said. "It is important that you know we are working diligently and cooperatively with our regulators to address any issues they have raised, and with the goal of resuming Ameridose's operations as soon as possible."

(Reporting By Toni Clarke; Editing by Gerald E. McCormick)

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Comments (1)
tyg wrote:
How pathetic are these drug companies, acting just like big pharma and when the going gets tough they drop all the employees. Barry J. Cadden, his wife, Lisa Cadden and her brother Gregory Conigliaro are probably still working on hiding any property they got from the recent watershed of killings, more than 30 people are dead and hundreds hurt. Now that Barry, Lisa, and Gregory have been asked to play fair they let their employees out in the cold, how nice just before thanksgiving. Is Mr. Cadden, Lisa Conigliaro Cadden, and Mr. Conigliaro going to give the employees that helped them become billionaires any paid leave while Ameridose and NECC try to play fair and work like the rest of the industry they are undercutting? Probably not, who knows they may re-employ them when they open a new “pharmacy” and grow again with all the regulators watching them, issuing warning letters, and doing nothing. Maybe their laid off lawyers and reg affairs personnel will go to work for FDA or better yet stay with the MA board of pharmacy, they don’t see an issue with one of their officers being NECC/Ameridose employee; I bet she did not lose her two jobs. Mr. Cadden, Mrs. Conigliaro Cadden, and Mr. Conigliaro might have to find another little regulated industry to make their entrepeneurial return, and when they are found out their employees will be laid off too. The three stooges making fun of American patients, while boards of pharmacy and the FDA are amused.

Nov 12, 2012 2:09am EST  --  Report as abuse
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