By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

PRIME Minister Philip “Brave” Davis said the government was unsuccessful in intervening to prevent the closure of PharmaChem Technologies and the loss of more than 100 employees, which he called a “blow” to Grand Bahama’s economy.

PharmaChem announced its closure on Monday, saying it expects to cease all operations on Friday, January 12. The company attributed its closure to “unprecedented challenges”, which affected its ability to sustain operations.

Tribune Business reported that the company was experiencing “technical and operational issues” related to its $400m plant expansion, which was designed to expand the range of drugs supplied to its sole client, Gilead Life Services. The project reportedly went significantly over budget due to cost overruns.

With the company unable to meet Gilead’s desired production timelines and volumes, the latter pulled its financial support from PharmaChem, prompting its closure.

“Sadly, we tried to intervene, but unfortunately, the issue that involves the high-tech company is such that we are unable to bring any real solution to that challenge,” Mr Davis said after a wreath-laying ceremony at the Progressive Liberal Party’s headquarters yesterday.

“We are hopeful that the employees that are being impacted by it are being sorted out according to our laws, and hopefully, we will be able to try to retrain and place them elsewhere.

“My conversation with the hierarchy of Gilead, which is the key figure in all of this, is to see whether they could be redeployed elsewhere until there is a solution for the plant.”

PharmaChem announced they have petitioned for a formal liquidation process under Bahamian law.

Labour Director Howard Thompson said the company was operating under the law and notified the Department of Labour of the terminations.

Mr Thompson said the government is helping employees be redeployed based on their skills, noting their redundancy packages are also being handled.

PharmaChem, which Italian entrepreneur Pietro Stefanutti founded, supplied antiretroviral API drugs Gilead, which employed them in the worldwide treatment of HIV/AIDS.

This product helped treat one million persons worldwide, and the new plant was intended to help produce two to three more drugs.