08 December 2021 | Wednesday | News
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Amoxicillin is an active pharmaceutical ingredient (API) in GSK's Augmentin product. This will result in the closure of the site, with manufacturing at the site expected to cease by the end of 2024. This announcement will not affect the availability of GSK products in Singapore or elsewhere, or impact GSK's other operations in Singapore.
The Quality Road site was established in 1972 and has been operating for close to 50 years. The cost of GSK producing the API at Quality Road is now significantly higher than outsourcing production to another company. Following a careful review, it was concluded that outsourcing the API is the best option for Augmentin to remain competitive and continue to be a growing brand in our General Medicines portfolio. This portfolio is an important part of GSK's global strategy, alongside the discovery, development, and manufacturing of innovative medicines. This is how we will continue to make the greatest difference for patients in Singapore and around the world.
In 2024, we anticipate that 120 roles will be impacted. However, GSK will seek to mitigate this impact by working on alternative employment opportunities within GSK Singapore and regionally that utilise the skill base the employees have in Quality Road, taking into consideration the timing of site closure activities, vacancies and incremental investment activities. We will also work closely with our partners in government, the union and local industry to maximise external opportunities for redeployment.
GSK continues to view Singapore as a strategic location for our business operations and remains committed to our long-standing presence in the country. For over 60 years, GSK has been an important contributor to the healthcare system and the biopharma manufacturing sector in Singapore. We are one of the biggest contributors to Singapore's biomedical sciences industry with investments in excess of S$1.5 billion.
Singapore remains one of GSK's key manufacturing and supply locations for our global pharmaceutical and vaccines business, and GSK continues to invest in high-value and advanced manufacturing in Singapore. In 2019 we announced a S$130M investment in Jurong to open new state-of-the-art manufacturing facilities, and we are continually exploring new investments for this site in the near-term.
We continue to deploy innovative manufacturing technologies at Jurong, where we're introducing new chemical entities for global markets for our innovation-focused portfolio. In addition, we are creating a new strategic hub in Jurong that will oversee external development and external manufacturing at the site, which will help enhance GSK's next generation biopharma manufacturing capabilities.