Pfizer to close UK R&D site
pharmafile | February 1, 2011 | News story | Research and Development | Kent, Pfizer, R&D, Sandwich, closure
Pfizer has announced that it is to close its UK research site at Sandwich in Kent, with the loss of around 2,400 jobs.
The announcement is a major blow to the UK, which had tried to encourage investment by the pharma industry. Pfizer says the decision does not reflect on the UK environment, but is part of its global process of R&D consolidation.
The company says the decision is part of a global plan announced today to create a more “focused and sustainable R&D engine for innovation”. As part of this global strategy Pfizer is planning to exit certain therapeutic areas, including Allergy & Respiratory, which is based at Sandwich.
Pfizer’s main European research site is to close by 2013 as the US firm aims to reduces its annual R&D spend by at least $1 billion in the next financial year.
A total of 2,400 employees currently work at the Sandwich site, but most of these positions will be made redundant over the next 18-24 months. The company says it hopes to transfer several hundred positions to other Pfizer sites or to external partners, subject to employee consultation and other legal requirements.
Pfizer says it will work to find partnership opportunities which can utilise the facilities and buildings, in an effort to preserve jobs and activity on the site.
The company says it will also make every effort to mitigate the impact on Pfizer colleagues and the local community, and work with local and national agencies.
A new Pain and Sensory Disorders Unit will be based in Cambridge, UK drawing on some assets from the Regenerative Medicines Unit.
The company says the closure will mean that around 3,000 positions will be maintained across Pfizer’s entire business in the UK.
Dr Ruth McKernan, Senior Vice President and Site Head at Sandwich said: “It is with a deep sense of sadness that we announce our proposal to exit our site in Sandwich, Kent. It has played an important role in the discovery and development of medicines and has brought many life-saving treatments to patients.
“Sandwich has an extremely talented workforce with a proud and rich history in science research and development. This decision is no reflection on the site, the workforce or the operating environment in the UK. We recognise that this is a difficult time for colleagues and the community and our priority now, and over the coming weeks and months, is to support our people through this process.
“It is hoped that we can retain this proud R&D heritage through strategic partnerships in the future.”
Business secretary Vince Cable said he was disappointed at the decision, and would lead efforts to find a new use for the site.
The business secretary, Vince Cable, said: “The company has been clear that this decision was part of its global programme of change and not based on a judgment of the UK as a location for pharmaceutical research.”
Pfizer posts results
Meanwhile, Pfizer saw a 36% increase in revenue for the full year to $67.8 billion, mainly as a result of its merger with Wyeth in 2009.
Its biggest seller Lipitor continued to slide as sales dropped by 6% to $10.73 billion as Pfizer braces for the loss of its US patent in November.
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