Monroe County drug maker Catalent to cut 130 jobs. What we know

Drug maker Catalent is cutting 130 jobs in Bloomington.

The company said in an emailed statement the cuts are part of the company’s efforts to increase efficiencies and lower costs, but did not provide details.

“Consistent with these efforts, we have made the difficult, but necessary, decision to reduce headcount by approximately 130 positions across current and open roles at the Bloomington site,” Catalent spokeswoman Haley Los said.

Catalent had about 4,000 employees in the Bloomington area in 2022, but has reduced staff since then as it struggled to adjust to a post-pandemic economy. A current headcount was not immediately available on Wednesday.

In 2020, Catalent expanded its Bloomington operations with more than $100 million in investments and an additional 1,300 employees to rapidly increase production of COVID-19 vaccines. In 2021, the company added 1,000 more employees in Bloomington and raised its starting wage to $19 per hour. It cut jobs as demand for the COVID-19 vaccines waned.

The parent company of Danish drug maker Novo Nordisk said last month that it plans to buy Catalent, including the Bloomington operations, for $16.5 billion. Plans call for Catalent, which is currently publicly traded, to be taken private. The companies hope to conclude the deal by the end of the year.

At the time, an Indiana University expert said he believed the planned acquisition would bode well for the Bloomington operations.

George Telthorst, director of the Center for the Business of Life Sciences at the IU Kelley School of Business, said he believed Novo was making the acquisition primarily because it needs to add capacity for its drug Wegovy. The drug was initially made to treat diabetes but has since gained popularity as a weight loss drug, for which it is also approved by the Food and Drug Administration.

Telthorst said adding capacity typically takes a long time and costs a lot of money, so it makes sense for Novo to buy production plants to add capacity more quickly and at a lower cost.

Catalent shares spiked on news of the planned acquisition.

Los did not immediately reply to follow-up questions about when the jobs would be cut, what specifically prompted the cuts and whether they were related to the post-pandemic slowdown in orders for vaccines.

Los said the company was “committed to treating those impacted with the utmost respect and supporting them in this transition,” but did not provide details.

Boris Ladwig can be reached at bladwig@heraldt.com.

This article originally appeared on The Herald-Times: Bloomington drug maker Catalent cutting 130 more jobs