The rationale behind the closure is that the Chao Center has not been able to become self-sustaining during its five-year operation.
According to Joseph Hornett, senior vice president, treasurer and COO of the Purdue Research Foundation, contributing factors include the economic downturn and the challenges with producing small-volume drugs.
The Chao Center, on humanitarian grounds, will continue to manufacture and distribute the multidrug-resistant tuberculosis drug Seromycin and other life-saving legacy drugs until new manufacturers are found. As a result of an agreement with Eli Lilly and Co, the Chao Center became the sole producer of Seromycin for patients in North America, in 2007.
Allen and Lee-Hwa Chao, alumni of Purdue University, have gifted $5m through which the center was opened in 2005. The Chao Center is a pharmaceutical manufacturing facility that produces and distributes legacy and small-volume drugs.
The 12 center employees will be provided outplacement services. Transfers for employment opportunities at the Purdue Research Foundation also will be offered if comparable positions are available.