Pfizer (NYSE: PFE), the world's biggest drugmaker, said Monday it is closing six of its 20 research facilities, reorganizing and consolidating others, and cutting the jobs of roughly 15 percent of its scientists and support staff, according to Associated Press.
The moves are part of Pfizer Inc.'s massive reorganization after buying drug and vaccine maker Wyeth (NYSE: WYE) just 3 1/2 weeks ago.
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The executives heading the combined research operation told The Associated Press exclusively that integrating and reorganizing the two companies' laboratories will boost research productivity and efficiency and save money as well.
New York-based Pfizer will eliminate about 35 percent of the 16 million square feet of research space it now has around the world.
It will now have five key research centers, each focused on a couple of specific disease areas, plus nine other laboratories with specialized research capabilities. Research operations in Princeton, N.J.; two sites each in New York and North Carolina and one in the United Kingdom will be closed.
Pfizer could not say how many scientists and support staff the combined company has in research and development.
Savings from the job cuts and the plant closures will be poured into research on key diseases Pfizer is targeting, including Alzheimer's and other neurological diseases, cancer, pain and inflammation, diabetes and infectious diseases.
That's an unusually fast transition for an already-huge company that just completed a $68 billion acquisition on Oct. 15.
By comparison, when Pfizer acquired Warner-Lambert Co. in 2001, it spent the next two years making a series of decisions about what to do with different parts of the research organization. It still hadn't finished the integration of the two companies when it bought another drugmaker, Pharmacia Corp., in 2003.
Those areas were both strengths of Wyeth's, key reasons Pfizer bought the company, which was based in Madison, N.J.
Affected employees were being notified today.
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