Schein Pharmaceuticals Forced to Cut Workforce after FDA Action

Schein Pharmaceutical, Inc. recently announced it will reduce its workforce by approximately 350 employees at its Phoenix, AZ facilities. The workforce reduction results from the Food and Drug Administration (FDA) action of September 10, 1998 that had the effect of halting the manufacturing and distribution of all products from Schein's subsidiary Steris Laboratories, Inc. in Phoenix.

Since the FDA action, Schein has been negotiating with the FDA toward a consent agreement to resume manufacturing and distribution of certain products manufactured at the Steris facility. Because of the FDA action, Schein had placed 300 of its approximately 700 Phoenix employees on paid furlough on September 16, 1998.

Schein will provide the employees affected by the reduction with severance packages that include salary and benefits continuance, job counseling and outplacement services. These employees include management, operation and administrative personnel.

Schein Pharmaceutical develops, manufactures and markets a broad generic product line through the integration of its product development expertise, diverse, high-volume production capacity and direct sales and marketing force.