In an effort to improve efficiency, Bayer HealthCare will invest an estimated $10 million its manufacturing operations in the greater Kansas City region.
The company will combine and transfer its operations from three locations in the St. Joseph, Miss., area to one this year. Additionally, Bayer will transfer its regulatory and development activity to its U.S. headquarters based in Shawenee, Kan., by early 2015.
Bayer acquired the St. Joseph facilities in January 2013 following its acquisition of the U.S.-based animal health business, Teva Pharmaceutical Industries, which strengthened the company's food animal business with a range of anti-infectives, anti-inflammorites and reproductive hormones. It will also enable Bayer to build its companion animal veterinary business by expanding its portfolio with dermatological, pet wellness and nutraceutical products.
"Bayer's U.S. Animal Health business is vital to the overall attainment of the company's global animal health success," said John Koelink, head of product supply, animal health. "This strategic decision to optimize operations will ensure the long-term vitality of the business and our U.S. operations, including both the St. Joseph and Shawnee facilities."
Bayer will also invest an estimated $3.5 million in its Shawnee site to consolidate and build research and development capabilities. The company expects to complete its overall manufacturing operations optimization early next year.