This year, following threats of tariffs from President Trump, major pharmaceutical companies have committed billions to establishing new factories across the United States. These advanced facilities, currently under construction in key industry areas like North Carolina, are poised to manufacture high-profit, blockbuster drugs.
However, this resurgence in drug manufacturing largely bypasses generic medicines, which make up a staggering 90 percent of all prescriptions filled by Americans.
Instead of new construction, the more common reality for generic drug production is evident in Shreveport, Louisiana. A factory there closed its doors in March, leaving its workforce gone and the once-busy tablet-making machines silent.
For over forty years, this factory was a vital producer of common generic drugs found in nearly every American home, including ibuprofen, aspirin, Tylenol, and treatments for burns and allergies.
The factory remains unsold, even as calls from Mr. Trump for pharmaceutical production to return to the U.S. continue.
This facility stands as a stark reminder of the long-term decline in American generic drug manufacturing and the significant hurdles preventing its revitalization.
Public financial records indicate that the Shreveport plant incurred millions in annual losses for its former owner, Dr. Reddy’s Laboratories, an Indian pharmaceutical company. Like many generic drug manufacturers, Dr. Reddy’s primarily operates from India, where production expenses are considerably lower than in the U.S.
The former Dr. Reddy’s plant has been sitting empty for months.
Dr. Reddy’s chose not to comment on the closure. However, a company spokeswoman, Lori McCreary, previously informed a local Shreveport newspaper that the plant simply lacked a viable path to profitability.
The harsh economic realities of generic drug manufacturing have led to numerous closures. For instance, in 2021, the last major generic drug factory in Morgantown, West Virginia, ceased operations, shifting production to India and resulting in 1,400 job losses.
Over recent years, several other facilities producing generic versions of essential medications, including chemotherapies, antibiotics, and treatments for diabetes, ADHD, and asthma, have shuttered in states like Illinois, North Carolina, California, New Jersey, and Minnesota. Another plant in Pennsylvania is slated for closure next year.
While some of these defunct facilities have been acquired and repurposed by other drug manufacturers, the majority remain out of commission, no longer contributing to medicine production.
Since 2013, the number of U.S. facilities dedicated to formulating generic drugs, similar to the Shreveport plant, has seen a significant 27 percent reduction, according to an analysis of FDA data.
A Steady Decline in U.S. Generic Drug Production
Drug manufacturing is a complex, global process involving multiple stages across different countries. It begins with raw materials that are converted into active pharmaceutical ingredients (APIs), which are then shipped to plants like the one in Shreveport for final product formulation.
Notably, the Shreveport facility never produced its own active ingredients, instead relying on imports from nations such as China and India. The number of U.S. plants involved in this crucial initial stage of generic drug manufacturing has declined by 38 percent since 2013.
While the Trump administration has attempted to incentivize a boost in U.S. generic drug manufacturing, supply chain experts contend that significant financial motivation for large-scale domestic production remains absent.
To date, only a handful of generic drug producers—Hikma, Amneal, and Lupin—have publicly announced plans for constructing new manufacturing plants within the United States.
Sandoz, a major generic drug manufacturer, recently stated it had no immediate plans for U.S. production. Its CEO, Richard Saynor, expressed frustration, noting that antibiotics are often sold for less than a bag of candy, making domestic manufacturing unprofitable. While the company has since indicated openness to U.S. production, no concrete investments have been announced.
In stark contrast to the modern, cutting-edge U.S. facilities manufacturing high-value, brand-name products like Covid vaccines and costly gene therapies, many of America’s existing generic drug plants are old and showing their age.
The Shreveport factory, constructed in the 1980s, features equipment that is decades old. Workers estimated that boiler room repairs alone would exceed $2 million this year.
The vast factory was originally designed for a much larger workforce than the approximately 100 employees present at its closure. Currently, only three staff members remain to maintain basic operations—lights, and climate control—as the search for a new buyer continues. The Dr. Reddy’s branding has also been removed.
The abandoned factory evokes a post-apocalyptic atmosphere, with office supplies scattered across desks and forklifts left casually on the production floor, suggesting an abrupt departure mid-shift.
Tablet production commenced in the factory’s enormous warehouse, where large barrels of active and raw ingredients were received and stored. Workers meticulously weighed and measured precise quantities for each drug formulation.
Specialized machinery transformed minuscule particles into larger granules before compressing them into tablets. Another automated process coated the tablets, much like a spinning laundry cycle. Finally, lines and letters were printed on each tablet before they were funneled onto an assembly line for bottling.
For many years, the factory’s flagship product was Tylenol, produced under contract, initially for Johnson & Johnson and later for Kenvue. Additionally, the plant manufactured various prescription and over-the-counter medications distributed to pharmacies and major retailers.
The Golden Era Fades
Among the employees laid off in March was Sonny Rambin, 65, whose tenure spanned from the factory’s inception to its final day of operation.
In 1984, while working in the oil industry, Mr. Rambin secured a position at Boots Pharmaceuticals in Shreveport. Boots, a prominent British drugmaker, had recently established a regional presence by acquiring a local company.
Boots invested $36 million in the factory’s construction, an amount equivalent to over $100 million today, yet significantly less than the cost of building a comparable facility now. The grand opening in 1986 was a celebrated event, attended by local and British dignitaries. Mr. Rambin himself was involved, tasked with spray-painting a shovel gold for the ceremony. Amidst a performance by the local symphony, Shreveport’s mayor proudly declared the plant a “jewel in the city’s crown.”
During that period, Boots experienced booming business, with the Shreveport factory’s offices bustling and its production lines running at full capacity.
“That was the heyday,” recalled Mr. Rambin, describing a time of generous bonuses, extravagant company parties, and a lively atmosphere reminiscent of a ‘Mad Men’ episode, where colleagues freely enjoyed drinks and smokes.
Sonny Rambin was among the roughly 100 employees laid off when the Shreveport factory closed in March.
The prosperous era extended into the 1990s, as the factory’s workforce expanded to approximately 400 employees under the ownership of German chemical giant BASF.
However, by 2009, when Dr. Reddy’s acquired the plant to strengthen its U.S. operations, the industry landscape had already begun to change fundamentally.
According to one key metric, U.S. pharmaceutical production reached its zenith in 2006.
A combination of stricter clean air and water regulations in U.S. states and increasing labor costs contributed to the exodus of drug manufacturing from the country. Simultaneously, numerous best-selling drugs were losing their patent protection, creating a lucrative opening for overseas factories, particularly in India, to produce generic alternatives.
These significantly lower production costs abroad gave foreign generic drug manufacturers a distinct competitive edge over their American counterparts.
Facing intense competition, some generic companies have exited the market without warning, leading to widespread drug shortages. Those still operating often struggle with extremely narrow profit margins, as numerous manufacturers vie to drive prices down.
“Manufacturing products that have been on the market for decades simply isn’t very profitable,” explained Mike McCorkle, a former manager at the Shreveport plant with two decades of experience. He added, “When drugs can be produced so much cheaper overseas, especially in India, it’s incredibly difficult to compete while manufacturing in the U.S.”
On average, the labor cost for a U.S. employee can be ten or more times higher than that of an Indian worker. Consequently, India now supplies approximately half of the generic drugs consumed in America.
The decline of the Shreveport plant was foreshadowed years ago when Dr. Reddy’s opted to transfer the production of generic Zyrtec, a popular allergy medication, to India, according to former employees.
“When you see a drug that’s been made here for years suddenly moved to India, you know it’s not a good sign,” commented Curtis Webb, who worked as a manufacturing technician at the plant for eleven years.
Troy Norris, a 33-year veteran of the Shreveport plant; persistent weeds encroaching on the site in July; Mike McCorkle, who spent 20 years there.
An Unwanted Asset on the Market
Gradually, workers observed a reduction in tablet production. Both long-standing and newer employees began to depart, and Dr. Reddy’s faced mounting financial losses.
When the plant’s closure was announced in January, it came as no surprise to the workforce. “We knew it was coming,” stated Troy Norris, 60, who had been responsible for cleaning and stocking equipment at the facility for 33 years.
Dr. Reddy’s subsequently sold the factory to Ten Oaks Group, a firm specializing in flipping properties. The plant and its equipment were initially advertised online for a mere $18 million.
Even with efforts by Senator Bill Cassidy, a Republican from Louisiana, to elevate the plant’s visibility, a buyer remains elusive. Any new owner would face the daunting task of obtaining regulatory approval for pharmaceutical manufacturing, a significant upfront investment with no guaranteed revenue for years.
The plant was acquired by Green Dock Partners, a New York real estate firm, in July. Jacob Solomons, a partner at the firm, expressed optimism about finding a buyer soon, indicating they are open to interested parties beyond just generic drug manufacturers.
“We genuinely believe this facility offers a substantial opportunity,” said Mr. Solomons, emphasizing its value as a cost-effective alternative to constructing a new plant and purchasing all-new equipment.
Former employees of the plant have scattered; some have secured new roles in diverse local industries, while others have relocated nationwide for positions at other pharmaceutical companies. A few still harbor hope of returning if the Shreveport facility ever reopens.
Throughout his career, Mr. Rambin advanced to become a chemist, but his enthusiasm for the generic drug sector waned under Dr. Reddy’s ownership. He saw the plant’s closure as a clear signal for retirement. “Every time I drive past the plant, a wave of sadness washes over me,” Mr. Rambin confessed. “So much of my life was spent within those walls.”
Mr. Rambin, a long-time employee, decided the plant’s closure was his cue to retire.