Merck plans to lay off 150 full-time employees in Durham, N.C., as the drugmaker moves production of varicella, the active ingredient used in chickenpox and shingles vaccines, outside the state, according to The News & Observer.
Merck said it will move manufacturing of varicella to its facility in West Point, Pa., because the market for the drug has shrunk.
"The decision to stop varicella bulk production at the site is the result of changing market conditions that have made it unnecessary to make the product at two locations," the company told The News & Observer.
Affected employees will receive 60 days of compensation and benefits, a severance package and job placement assistance.
Despite the layoffs, Merck said it plans to bring 425 jobs to North Carolina by 2022. In exchange for $12.5 million in incentives, Merck will build a manufacturing facility at its campus in Durham. The facility will make the active ingredients for Merck's Gardasil vaccine, which protects against cervical cancer.
Read the full report here.