Pfizer Inc. (NYSE:PFE) is cutting some research jobs at it research center in Cambridge. The drug company has not specified the number of jobs it intends to shed at the facility. The management said some of the affected employees at the Cambridge center would be moved to growing areas of the company.
In a statement, Pfizer Inc. (NYSE:PFE) said that their R&D organization is periodically adjusted so that the staff mix remains in-line with the priorities of the company. The Cambridge research center that has been earmarked for headcount cutback was opened in mid-2014. Pfizer has not said how many jobs will be lost at the facility, but the company is known to be making staff cutbacks across its research organization.
Relocation of staff to growing segments
The company hopes to move some of the affected employees at the Cambridge facility to the growing segments of the business, which include cancer and gene therapy. Pfizer will also make new hires to meet the staff demand in the growing areas.
In an evolving research and development ecosystem, Pfizer Inc. (NYSE:PFE) always seeks to have the right mix of talents and capabilities at its facilities so that it can advance its innovation. That is the reason headcount reduction and consolidation at the research centers is important for the drug company.
$17 billion acquisition
Pfizer Inc. (NYSE:PFE) recently offered to buy Hospira, Inc. (NYSE:HSP), a maker of a new class of generic drugs, for $90 per share, or $17 billion including debt. Although Pfizer is paying a premium for Hospira, biosimilars such as the ones that Hospira develops are expected to be a rich source of revenue in the future.
Biosimilars are generic versions of complex drugs known as biologics. While biosimilars have been approved in markets such as Europe, they are not available in the U.S., but there are hopes that FDA would start approving them. That explains why Pfizer Inc. (NYSE:PFE) and other drug companies are buying biosimilar makers to tap the opportunities in the U.S. once FDA starts their approval.