Eight Sites Targeted for Exit; Reductions Recommended At Six Plants; Operations to Expand at Others
Pfizer Global Manufacturing Announces Plans To Reconfigure Its Global Plant Network
Eight Sites Targeted for Exit; Reductions Recommended At Six Plants; Operations to Expand at Others
NEW YORK, N.Y., May 18 - Pfizer Global Manufacturing announced today plans to reconfigure its worldwide plant network to create a fully aligned manufacturing and supply organization from the combined networks of Pfizer and Wyeth. This implementation of the first phase of Pfizer's previously announced Plant Network Strategy includes recommendations to cease operations at eight manufacturing sites in Ireland, Puerto Rico, and the United States by the end of 2015, as well as to reduce operations at six other plants in Germany, Ireland, Puerto Rico, the United Kingdom, and the United States.
The planned reductions will increase manufacturing efficiency and lower costs by more effectively using resources and technology, improving plant processes, eliminating excess capacity, and better aligning production with market demand. These changes will result in a global reduction of approximately 6,000 jobs over the next several years. Product transfers will expand the roles of a number of plants in Pfizer's manufacturing network.
"The restructuring of our global plant network is critical to our efforts to remain competitive so that we can continue to meet patient needs and expand the access and affordability of our medicines," said Pfizer Global Manufacturing President Nat Ricciardi.
"Nevertheless, today's announcement is very difficult to make because of its impact on our colleagues," Mr. Ricciardi added. "We have a tremendous global workforce and some of the best manufacturing facilities in the industry. But we must continue to adjust to the fast-changing and extremely competitive environment in which we operate. That means realigning our network and reducing our manufacturing capacity so that we can position Pfizer for the next phase of growth across biopharmaceuticals and our diversified business portfolio."
The announcement is the culmination of an intense half-year evaluation of sites that manufacture aseptic (injectable), solid-dose, and biotechnology medicines, as well as consumer healthcare products.
Pfizer plans to discontinue manufacturing operations over the next 18 months to five years at three solid-dose sites that manufacture tablets and capsules: Caguas in Puerto Rico; Loughbeg in Ireland; and Rouses Point, N.Y., in the United States. (Wyeth had previously announced in 2005 that it would exit and sell the Rouses Point site.)
The company also plans to phase out pharmaceutical solid-dose manufacturing at Guayama, Puerto Rico, and that site will expand its Consumer Healthcare operations.
Two aseptic facilities that make sterile injectable medicines are targeted for exit: Dun Laoghaire, Ireland; and Carolina, Puerto Rico.
Reductions are planned at two other solid-dose facilities: Illertissen, Germany and Newbridge, Ireland.
While Pfizer's biotechnology portfolio continues to grow significantly, the company also proposes changes at its sites that manufacture vaccines and large-molecule medicines to improve efficiencies, capitalize on process and productivity improvements and new technology, and to simplify the supply chain. Pfizer plans to exit operations in Shanbally, Ireland, as well as biotechnology manufacturing in Pearl River, N.Y., in the United States. Plants in Sanford, N.C., and Andover, Mass., in the United States and Havant, in the United Kingdom, also expect to see reductions.
Pfizer plans to cease production of consumer healthcare products at its plants in Richmond, Va., and Pearl River in the United States. The Pearl River site will remain Pfizer's Center of Excellence for Vaccine Research and Development, as previously announced. Consumer Healthcare R&D also will continue in Richmond. In both Pearl River and in Richmond, R&D jobs will be unaffected by the planned manufacturing exits.
The timing of specific exits will depend upon the complexity of operations, the amount of time required for product transfers, and other business requirements.
In an effort to preserve jobs and minimize the impact to communities, Pfizer will explore opportunities to divest plants in the event operations are discontinued. Success will depend upon a number of market factors, including present demand for pharmaceutical manufacturing facilities.
"We are keenly aware of the impact these types of changes have on employees and their families," Mr. Ricciardi said. "We will provide support to our colleagues who lose their jobs so that their transition to new careers is as smooth as possible."
Pfizer's solid-dose network will include plants in Freiburg, Germany; Amboise, France; Vega Baja and Barceloneta, Puerto Rico; Ascoli, Italy; Newbridge, Ireland; and Illertissen, Germany. Plants in Puurs, Belgium; Perth, Australia; Catania, Italy; and Kalamazoo, Mich., in the United States will make up the aseptic network.
The biotechnology network will consist of sites in Grange Castle, Ireland; Strangnas, Sweden; Algete (Madrid), Spain; Havant, United Kingdom; and Andover, Mass. and Sanford, N.C., in the United States.
The Consumer Healthcare network will include plants in Guayama, Puerto Rico; Montreal, Canada; Albany, Ga., in the United States; Aprilia, Italy; Hsinchu, Taiwan; and Suzhou, China.
Evaluations of Pfizer's Animal Health manufacturing sites are presently underway. Recommendations are expected by the end of June. Studies of the Nutrition and Emerging Markets plant networks will begin later this year.
Pfizer Global Manufacturing presently operates 78 plants internationally with a workforce of approximately 33,000 colleagues. It is one of the world's preeminent biopharmaceutical supply organizations.
Recommended Site Exits:
- Caguas, Puerto Rico (solid-dose)
- Carolina, Puerto Rico (aseptic)
- Dun Laoghaire, Ireland (aseptic)
- Loughbeg, Ireland (solid-dose)
- Shanbally, Ireland (biotechnology)
- Rouses Point, N.Y. (solid-dose)
- Richmond, Virginia (consumer healthcare manufacturing targeted for exit; R&D operations to remain in Richmond)
- Pearl River, N.Y. (proposed exit of biotechnology and consumer healthcare manufacturing; vaccines and biotherapeutics vaccines R&D will remain active at this site)
Recommended Plant Reductions:
- Guayama, Puerto Rico (phase-out of pharmaceutical solid dose operations planned; volume increases in consumer healthcare)
- Newbridge, Ireland (solid-dose)
- Andover, Mass., U.S. (biotechnology)
- Sanford, N.C., U.S. (biotechnology)
- Havant, UK (biotechnology)
- Illertissen, Germany (solid-dose)
Pfizer Inc: Working together for a healthier world™
At Pfizer, we apply science and our global resources to improve health and well-being at every stage of life. We strive to set the standard for quality, safety and value in the discovery,
development and manufacturing of medicines for people and animals. Our diversified global health care portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as nutritional products and many of the world's best-known consumer products. Every day, Pfizer colleagues work across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. Consistent with our responsibility as the world's leading biopharmaceutical company, we also collaborate with health care providers, governments and local communities to support and expand access to reliable, affordable health care around the world. For more than 150 years, Pfizer has worked to make a difference for all who rely on us. To learn more about our commitments, please visit us at www.pfizer.com.
Pfizer is one of Ireland's leading employers and the largest pharmaceutical sector investor and employer. One of the first pharmaceutical companies to locate in Ireland (1969), Pfizer has a rich heritage of innovation and expansion over a forty year period. Since its acquisition of Wyeth on 15th October 2009, the business now employs approx 5,000 colleagues across 10 locations based in Cork, Dublin, Kildare, Limerick. Pfizer's business interests in Ireland are diverse. There is a manufacturing presence in Active Pharmaceutical Ingredients, Solid Dose Pharmaceuticals, Sterile Injectibles, Nutritionals, Vaccines and Biopharmaceuticals; commercial Human Prescription, Animal Health and Consumer Health products businesses; Global Financial Services centre and a global Treasury operation. The Irish operations manufacture some of Pfizer's best selling and newest medicines including Lipitor (cardiovascular), Viagra (urology), Sutent (oncology), Enbrel (rheumatology) and Prevenar (vaccines). Ireland is a leading manufacturing base for Pfizer globally, exporting to global markets. Total capital investment by the company in Ireland exceeds $7billion. To learn more about our activities in Ireland, please visit us at www.pfizer.ie.
- Pfizer Global Manufacturing (PGM) has recommended changes to its worldwide plant network aimed at fully integrating the Pfizer and Wyeth manufacturing and supply organizations.
- These proposed changes will improve manufacturing efficiency and reduce costs by more effectively using resources and technology, improving plant processes, eliminating excess capacity, and better aligning production with product demand.
- By the end of 2015, PGM plans to cease operations at eight sites globally and reduce operations at six others. Sites to be exited are located in Ireland, Puerto Rico, and the United States. Reductions are expected at plants located in Germany, Ireland, Puerto Rico, the United Kingdom, and the United States.
- These recommendations will result in a global headcount reduction of approximately 6,000 over the next several years.
- The timing of site exits will depend upon the complexity of operations, the amount of time required for product transfers, and other business requirements.
- Pfizer plans to exit operations over the next eighteen months to five years at its solid-dose plant in Loughbeg, aseptic facility in Dun Laoghaire, and biotechnology plant in Shanbally. The company will also reduce operations at its solid-dose facility in Newbridge.
- 275 roles are impacted by the recommended reduction of the Newbridge operation. A further 510 are at risk due to proposed exits from the Dun Laoghaire, Loughbeg and Shanbally sites. Dun Laoghaire (~210), Loughbeg (~225), Newbridge (~275), Shanbally (~75).
- Pfizer is keenly aware of the impact these changes will have on its colleagues, the community, and the country, and the company will make a concerted effort to sell the sites where operations are intended to be discontinued.
Pfizer in Ireland
- Pfizer continues to have a major presence in Ireland, including Centres of Excellence in the manufacture of Biologics and Vaccines, Active Pharmaceutical Ingredients, Solid Oral Doses and Nutritionals which are critical to the company's manufacturing operations.
- As previously announced Pfizer has entered into agreements with Elanco, Eli Lilly's Animal Health division, whereby Elanco will acquire the Sligo manufacturing facility.
- The company currently employs approx 5,000 colleagues in the country, and continues to explore investment and expansion opportunities.
- The company is planning further capital investment and new positions in its biotechnology operations in Ireland.
- Manufacturing sites are located in Askeaton, Dun Laoghaire, Grange Castle, Little Island, Loughbeg, Newbridge, Ringaskiddy, and Shanbally.
- Key products currently manufactured in Ireland include Lipitor, Prevenar, Enbrel, SMA, Sutent, Geodon, Premarin, Effexor and Viagra.
Commenting today on the Pfizer PNS announcement, Dr Paul Duffy, Pfizer's vice president of manufacturing for Primary Care and Oncology.
"Today's announcement affects operations across the globe, but we are keenly aware of the impact they will have on colleagues in Ireland, the community, and the country. We have excellent colleagues and high quality manufacturing facilities and today's recommendation is not a failure of the Irish plants or our people. These steps are necessary to bring our manufacturing capacity in line with demand and to increase network efficiencies so that we will remain competitive on a global basis.
"As is often the case with a merger of two large companies, the integration of Pfizer and Wyeth resulted in excess manufacturing capacity and the duplication of resources, activities and facilities in much of our plant network. In the case of our growing biotechnology business, the recommendationss will enable us to operate more efficiently by taking full advantage of the technology available to us, capitalizing on process and productivity improvements, and eliminating duplications in our systems. The changes we are making in the biotechnology sector of our plant network will support our growth as a top biotherapeutics innovator.
We have retained a number of Centres of Excellence in the manufacture of Biologics and Vaccines, Active Pharmaceutical Ingredients, Solid Oral Doses and Nutritionals which are critical to the company's manufacturing operations. We also continue to explore investment and expansion opportunities. We have plans for further capital investment and new positions in our biotechnology operations in Ireland which we hope to announce in the near future.
"We are committed to making a concerted effort to sell the sites we propose to exit from as ongoing operations. We have been successful in this regard before having recently sold our Animal Health plant in Sligo and our Loughbeg API plant, preserving jobs at both locations. PGM will immediately begin to explore opportunities to sell the site to outside buyers in an effort to maintain as many jobs as possible for colleagues. We will work closely with the IDA in this regard.
"The global pharmaceutical sector is entering challenging times but the industry in Ireland is well placed to address these challenges, with the active support of Government, its agencies and the research community. As members of Pharmachemical Ireland we have identified a blueprint for the type of operation that will survive into the future, which combines high quality, cost effective manufacturing with process and product development. We will work with other stakeholders to drive the industry in Ireland towards this 'factory of the future' model".
Ireland Site information
DUN LAOGHAIRE, Co. DUBLIN
- Recommended to exit site and seek buyer. 210 positions potentially impacted.
- Exit intended to be phased from end of 2011 to 2014. Aseptic drug product expected to transfer out first, followed later by Bioprocessing.
- Bioprocessing activities, which are a small part of the operation, are planned to transfer to Grange Castle, Ireland, which will optimise the scale and skill base for this activity.
- Anticipated new products for the site have not materialised.
LOUGHBEG, Co. CORK
- Recommended to exit site and seek buyer. ~225 roles potentially impacted.
- Single product site (Lipitor) approaching LOE (loss of exclusivity)
- Operations expected to cease early 2012.
- Sales projections for Lipitor post LOE project a significant reduction in volume loading at the site.
NEWBRIDGE, Co. KILDARE
- Site remains open with a New Role focused on Specialised Technology, and potential to transfer in up to 5 new products.
- Process Development Centre and Analytical Development Laboratory recommended to close. This is due to excess development and launch capacity in Pfizer's global network.
- Site planned to exit the manufacturing of oral contraceptives; challenges (e.g., cost) of competing with generics in this market was key factor.
- ~275 positions potentially impacted. 770 roles not impacted. Phasing out of these activities beginning end 2010 through 2014, but bulk of exits in 2013 with redeployment of resources to facilitate the new products coming on site.
SHANBALLY, Co. CORK
- Recommended to exit site and seek buyer. ~75 roles potentially impacted.
- Site has been recognised as exceptional in meeting aggressive construction, commissioning, and plant start-up timelines over the last two years.
- However, decision to exit is due to excess small scale mammalian cell based drug substance capacity in the network, with availability of clinical launch and scale up capacity at another site.
- Pending the clinical success of tanezumab Shanbally will continue to provide support for scale-up and product launch. Site exit is planned for early 2013 pending product launch, regulatory approval and technology transfer milestones.
Published: 18th May 2010.