Valeant headquarters in Laval, Quebec.Christinne Muschi/Reuters
Valeant Pharmaceuticals International Inc. is relocating production of one of its marquee skin-care products to the Montreal suburb where its head office is located. But the move is not expected to provide a major boost to Quebec's hard-hit life-sciences sector.
Laval, Que.-based Valeant said on Tuesday that its plant in Laval will become the North American production site for the prescription medication Jublia, a topical solution to treat toenail fungus.
Asked if the shift will create jobs, Valeant spokesman Sébastien Beauchamp replied in an e-mail: "Rather than creating new jobs, this move will help consolidate many specialized manufacturing jobs in Quebec."
The relocation is also not part of chief executive officer Michael Pearson's commitment late last year to add 130 full-time jobs at Valeant facilities in Laval and Steinbach, Man., to keep up with growing demand for the company's dermatological products, Mr. Beauchamp said.
The Jublia relocation has so far involved a total investment of more than $1-million for the Laval plant, Valeant said in a news release.
Jublia production is to be moved to Laval from Tokyo, Valeant said.
Quebec's once-thriving pharmaceutical industry has experienced layoffs and shuttered research facilities over the past several years, but one observer says the move likely won't do much in terms of helping breathe new life into the sector.
"It means an investment of around [$1-million] in Laval, some jobs created. But it is nothing significant as compared to their business model focused on mergers and acquisitions. No R&D will come out of this," Marc-André Gagnon, an associate professor at Carleton University whose focus includes pharmaceutical and innovation policy, said in an e-mail.
"Laval is a strategic choice for Valeant," Valeant Canada president and general manager Jacques Dessureault said about the Jublia move in a news release.
"As we take on the role of global production centre for prescription dermatology products, this now world-class facility allows us to become a major player in our industry at home and abroad."
Some European countries "may consider" sending their production to Laval once they launch Jublia, Valeant said.
Valeant has faced criticism from some quarters over the location of the company's senior management offices in New Jersey even though head office is technically in Laval, resulting in major tax advantages for the company, which was created in 2010 when its U.S.-based predecessor merged with Canada's Biovail Corp.
Mr. Pearson said last month that the company plans to play down its emphasis on growth-by-acquisition and steep drug price hikes while spending more on research and development after a series of controversies over certain practices and links to embattled mail-order pharmacy Philidor Rx Services.
Valeant also recently struck a deal with U.S. pharmacy giant Walgreen Co. for the distribution of many of its products through the chain's 8,000-strong network of outlets, including items from its dermatology portfolio. The agreement came after Valeant cut all ties to Philidor in the wake of a controversy over allegedly improper practices at that company. Valeant also faces investigations by U.S. government prosecutors in New York and Massachusetts over alleged drug price hikes.
Former Valeant chief financial officer Howard Schiller was named interim CEO two weeks ago to replace Mr. Pearson, who continues to be hospitalized with a severe case of pneumonia.