French drugmaker Sanofi announced a voluntary retirement scheme (VRS) for its employees at two manufacturing sites in Telangana, Medchal and Muppireddypally, citing viability issues.

About 800 people are employed across these two sites and may be impacted by the development, said people aware of the matter.

The company manufactures the 5-in-1 pediatric jab Shan5, along with inactivated polio vaccine (ShanIPV), cholera vaccine (Shanchol), Shanvac-B (hepatitis-B) and other vaccines, at the Telangana sites. It also does fill-finish of insulin at Muppireddypally. The vaccines and insulin are exported globally from these facilities.

A Sanofi spokesperson told ET that a glut of supplies added during Covid-19 and the struggle to win contracts from Unicef for its critical 5-in-1 pediatric vaccine Shan5 forced the company to assess its India operations.

“Over the last few years, the Covid-19 pandemic has accelerated the speed at which the healthcare environment has evolved both in India and globally. In particular, new pharmaceutical manufacturers have established themselves and increased the overall supply capacity for both vaccines and medicines,” said the company spokesperson.

“As a result, globally, Sanofi has had to adapt its strategy and portfolio to these trends. As some activities at our Medchal and Muppireddypally sites are no longer viable, a voluntary retirement scheme has been launched and is being offered to all employees of the sites on a voluntary basis only,” said the spokesperson.