AmerisourceBergen closes PharMEDium unit, cuts 165 jobs

AmerisourceBergen is permanently closing its PharMEDium business, cutting 165 jobs in Memphis, the Memphis Business Journal reported

PharMEDium was AmerisourceBergen's pharmacy compounding unit, which suspended operations in Memphis in December 2017 after an FDA inspection found sterility concerns.

In 2018, AmerisourceBergen spent $38 million on remediation at the Memphis facility. 

PharMEDium cut 225 jobs at the facility in January 2019. In May 2019, a federal judge entered a consent decree of permanent injunction against PharMEDium, and former FDA Commissioner Ned Sharpless, MD, said that the company had "exposed patients across the United States to risk of receiving a harmful drug, which we find unacceptable."

The company said Jan. 30 it will cut the remaining 165 jobs and cease all operations by the end of 2020, the Memphis Business Journal reported. 

"In light of the increased regulatory and commercial challenges, coupled with the difficulty of making progress on remediation and continued financial burden, AmerisourceBergen has made the decision to close the PharMEDium business," an AmerisouceBergen spokesperson told the Memphis Business Journal

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