Purdue U CMO to Shut Down Manufacturing Operations

April 23, 2010
WEST LAFAYETTE, Ind. - Purdue Research Park officials announced that the Chao Center for Industrial Pharmacy and Contract Manufacturing will discontinue operations in the coming months. The center opened in 2005 through a $5 million gift from Purdue alumni Allen and Lee-Hwa Chao. The Chao Center is a pharmaceutical manufacturing facility that produces and distributes legacy and small-volume drugs.As part of a humanitarian effort, the Chao Center will continue manufacturing and distributing the multidrug-resistant tuberculosis drug Seromycin and other life-saving legacy drugs until new manufacturers are found. In 2007, through an agreement with Eli Lilly and Co., the Chao Center became the sole producer of Seromycin for patients in North America. Outplacement services for the 12 center employees will be provided. Transfers for employment opportunities at the Purdue Research Foundation also will be offered if comparable positions are available. A new manufacturer of small-volume drug batches will be sought to move into the facility.The main consideration behind the closing is that the Chao Center has not been able to become self-sustaining during its five-year operation. Contributing factors include the economic downturn and the challenges with producing small-volume drugs, according to Joseph B. Hornett, senior vice president, treasurer and COO of the Purdue Research Foundation.