Pfizer Inc. is significantly reducing its research and development operations, following the $68 billion acquisition of competitor Wyeth that made it the world's largest pharmaceutical company.
As part of a new R&D model, Pfizer plans to consolidate its primary operations into five sites in Cambridge, MA; Groton, CT; Pearl River, NY; La Jolla, CA; and Sandwich, U.K. Pfizer intends to run its BioTherapeutics, PharmaTherapeutics and Vaccines divisions out of these facilities. Additionally, some specialized research is to be handled at other sites.
Pfizer is reducing its R&D footprint in an effort to more efficiently make use of its real estate. Some functions in Collegeville, PA; Pearl River, NY; and St. Louis are to be moved to other locations. Pfizer also plans to completely discontinue operations in Princeton, NJ; Clinton County, NY; Sanford and Research Triangle Park, NC; and Gosport, Slough/Taplow, U.K. R&D operations in New London, CT, will be moved to the nearby facility in Groton.
The consolidation cuts Pfizer's R&D space by 35 percent, going from 20 facilities to five main hubs and nine specialized centers. Approximately 2,000 employees are expected to lose their jobs.
"In less than a month, we have made complex business decisions needed to combine these two R&D organizations thoughtfully yet quickly," said Martin Mackay, president, PharmaTherapeutics Research & Development.
Two of Pfizer's competitors, Johnson & Johnson and Eli Lilly, also recently announced
major staff reductions.