Factoring Social Costs
Published: July 16th, 2012
In evaluating scenarios for its business after a 2007 management buyout, Pharmalucence managers considered the impact on employment.
“We were at the bottom of the recession where jobs were being lost; we didn’t want to be part of that,” President Glenn Alto said in a presentation “Making It Massachusetts” at Interphex.
Outsourcing pharmaceutical production—one of the options considered—would downsize the firm by more than 50 employees. Labor would be idled with layoffs and rehires if a second option of plant renovation were followed. Both scenarios were deemed as well to be too constricting of growth.
The decision to develop a CMO business in a new facility with new production assets—the highest cost option—yielded a platform for growth and employee retention.
“We felt we had a good, solid business and culture that was worth preserving; and a good, solid business premise that we could succeed with,” Alto said.
In the down-turned economy of that year, 75 existing jobs were secured. The firm has since hired 13 new employees, and is adding 10 more positions to support the contract business.