UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,262

SANOFI US SERVICES INC.

KADMON CORPORATION LLC

A SUBSIDIARY OF KADMON HOLDINGS INC.

GENERAL MEDICINES BUSINESS UNIT

NEW YORK, NEW YORK

Negative Determinations Regarding Eligibility

To Apply for Worker Adjustment Assistance

And Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (the Act), 19 U.S.C. § 2273, the Department of Labor
(Department) herein presents the results of an investigation
regarding certification of eligibility to apply for worker
adjustment assistance.

Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department of Labor to issue a certification for workers under
Section 222(a) of the Act, 19 U.S.C. § 2272(a), the following
three criteria must be met:

(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such workers' firm, or
an appropriate subdivision of the firm, have become totally
or partially separated, or are threatened to become totally
or partially separated.

(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:

(A) Increased Imports Path:

(i) sales or production, or both, at the workers' firm must
have decreased absolutely, AND

(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and

(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or production
of such firm or subdivision.

(B) Shift in Production Path:

(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such firm or subdivision; and

(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a free
trade agreement with the United States;

(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or

(III)there has been or is likely to be an increase
in imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a certification under Section
222(b) of the Act, 19 U.S.C. § 2272(b), to workers of a Supplier
or a Downstream Producer, the following criteria must be met:

(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;

(2) the workers' firm is a Supplier or Downstream Producer
to a firm that employed a group of workers who received
a certification of eligibility under Section 222(a) of
the Act, 19 U.S.C. § 2272(a), and such supply or
production is related to the article that was the basis
for such certification; and

(3) either

(A) the workers' firm is a supplier and the component parts
it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production or
sales of the workers' firm; or

(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to
the workers' separation or threat of separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."

The investigation was initiated in response to a Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment (ATAA) petition dated April 13, 2022 and filed on April
14, 2022, by the State Workforce Office, on behalf of former
workers of Sanofi US Services Inc., Kadmon Corporation LLC, a
subsidiary of Kadmon Holdings Inc., General Medicines Business
Unit, New York, New York (hereafter referred to as "group of
workers" or "Sanofi/General Medicines-New York"). In accordance
with 20 C.F.R. 618.110 a worker group is defined as, ""¦inclusive
of teleworkers and staffed workers." Workers of Sanofi/General
Medicines-New York are engaged in activities related to the
production of pharmaceutical drugs. The petition alleges that
worker separations, or threats thereof, at Sanofi/General
Medicines-New York were due to foreign trade.

During the course of the investigation, the Department
collected information from the petitioner(s), the workers' firm,
and other relevant sources.

With respect to Section 222(a)(2)(A), the investigation
revealed no sales or production declines at the workers' firm
during the one-year period prior to the petition date.

With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production of pharmaceutical drugs to a foreign country. Rather,
functions at the subject facility are performed by staff at
affiliated domestic facilities.

With respect to Section 222(b)(2) of the Act, the
investigation revealed that Sanofi/General Medicines-New York is
not a Supplier to a firm that employed a group of workers who
received a certification of eligibility under Section 222(a) of
the Act, 19 U.S.C. § 2272(a), and does not act as a Downstream
Producer to a firm (or subdivision, whichever is applicable) that
employed a group of workers who received a certification of
eligibility under Section 222(a) of the Act, 19 U.S.C. § 2272(a),
based on an increase in imports from, or a shift in production to,
Canada or Mexico.

ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE

In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
(ATAA), the group of workers must be certified eligible to apply
for Trade Adjustment Assistance (TAA). Because the group of
workers are denied eligibility to apply for TAA, the group of
workers cannot be certified eligible for ATAA.

Conclusion

After careful review of the facts obtained in the
investigation, I determine that all workers of Sanofi US Services
Inc., Kadmon Corporation LLC, a subsidiary of Kadmon Holdings
Inc., General Medicines Business Unit, New York, New York, are
denied eligibility to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, as amended, and are also
denied eligibility to apply for alternative trade adjustment
assistance under Section 246 of the Trade Act of 1974, amended.

Signed in Washington, D.C. this 29th day of June, 2022


/s/ Del-Min Amy Chen
_______________________
DEL-MIN AMY CHEN

Certifying Officer, Office of

Trade Adjustment Assistance