Home / Markets / Industries / Health Care

Monday, November 09, 2009

Pfizer to Reduce Research Operations

By Kathryn Glass

FOXBusiness

After successfully closing a merger with Wyeth last month, pharmaceutical colossus Pfizer (PFE) announced plans to close six of its research locations in an effort to consolidate the newly-expanded company’s research operations.

“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, in a statement. “Moving forward on our aggressive timeline, we are analyzing the combined portfolio and prioritizing research projects that will address unmet medical need and bring Pfizer’s scientific and competitive advantage to the benefit of patients.”

This latest reorganization will eliminate 15% of its scientists and forensic staff. Executives in charge of the soon-to-be- reorganized research department told the Associated Press that the move is likely to improve productivity while cutting costs.

Pfizer said the changes would reduce square footage devoted to research and development by 35%. Research will be limited now to five main research sites and nine “specialized units,” the company said in a release.

Operations will be shut down at locations in Princeton, N.J., the United Kingdom, two research sites in New York and two more research departments in North Carolina.

Shares of Pfizer rose 47 cents, or 2.8%, in Monday’s trading session to close at $17.43 per share.

Fox Business Video

- The Crisis With 20/20 Hindsight
- Nov 21, 2009
  
  FOXBusiness.com LIVE
- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto