State aid is no cure for drug
maker.
GlaxoSmithKline opted out of a 2005 state incentive agreement that
would have paid it $1.4 million for creating 200 jobs at its plant in
Zebulon and keeping them 10 years. Spokeswoman Stefanie Mendell says the
British drug maker filled the jobs but can't keep all of them. It
plans to cut about 70 in Zebulon, where it will still employ about
1,000. GSK employs about 6,000 in the Triangle, and more cuts could
follow. It has been hurt by competition from generic drugs, unexpected
regulatory delays and declining sales of its diabetes treatment
Avandia--which is packaged in Zebulon--after a study last spring linked
it to an increased risk of heart attack.
COPYRIGHT 2008 Business North
Carolina Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2008 Gale, Cengage Learning. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.
Browse by Journal Name: