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MARY ALTAFFER / Associated Press, File
Pfizer's world headquarters in New York. The firm said it was consolidating research and development at five "hub" sites.
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Pfizer to cut jobs at Wyeth's Montco site

Pfizer Inc., which bought rival Wyeth last month, said yesterday that it would move "a number of functions" from Wyeth's Collegeville, Montgomery County, location as Pfizer consolidated research and development at five "hub" sites.

Separately yesterday, Johnson & Johnson told Pennsylvania state officials that it would lay off 174 people at its Spring House facility as it pushed forward with 8,000 global job cuts the company announced last week.

Pfizer would not immediately say how many jobs would be eliminated at Collegeville - Wyeth's long-term pharmaceutical headquarters - where it employs 3,600.

The decision could affect hundreds of jobs, said one employee, who did not want to be identified.

About 800 people work in research and development in Collegeville, said State Sen. Andy Dinniman, who along with State Sen. John Rafferty and State Rep. Mike Vereb has pushed the company to keep the jobs there.

Dinniman, a Democrat, represents parts of Chester and Montgomery Counties. Rafferty, a Republican, represents parts of Berks, Chester, and Montgomery Counties. Vereb is a Montgomery County Republican.

Both the Pfizer and Johnson & Johnson announcements come amid unprecedented job reductions in the pharmaceutical industry, which is coping with both a reeling economy and generic competition that threatens to grab about $137 billion in industry revenue in the next five years.

In the last several months, Pfizer, Eli Lilly, AstraZeneca, Johnson & Johnson, and GlaxoSmithKline P.L.C. have announced more than 40,000 cuts.

Mikael Dolsten, Pfizer's president of BioTherapeutics Research & Development, emphasized that the Collegeville facility would remain open. The Pfizer campus there will be the headquarters for the company's specialty-business unit, as previously announced.

Specialty business includes the top-selling Prevnar pneumococcal vaccine, and the company's rheumatoid arthritis, hemophilia, and other products for patients and physicians with needs different from those in the broader population. Specialists prescribe many of the drugs in this unit.

"We have been very pleased with the quality of work at Collegeville," Dolsten said, "and it is going to have a key role."

Pfizer earlier said it would close Wyeth operations in Great Valley next year, though the fate of 900 jobs there had not been determined.

Dinniman said he had urged the company to provide details on changes at both locations "as quickly as possible for the peace of mind of those local employees and families who are unsure about their jobs."

Pfizer closed the $68 billion deal on Wyeth on Oct. 16.

Pfizer said it would significantly reduce R&D activities at Collegeville, Pearl River, N.Y., and St. Louis, and would eliminate R&D operations in Princeton, Chazy, Rouses Point, and Plattsburgh, N.Y., Sanford and Research Triangle Park, N.C., and Gosport, Slough/Taplow, in the United Kingdom.

Pfizer said earlier that it planned to cut about 20,000 of 130,000 total jobs after it made the acquisition.

Monsanto Co. said yesterday that it had agreed to acquire Pfizer's laboratories and greenhouses in suburban St. Louis for $435 million. Pfizer said about 600 of the 1,000 jobs at St. Louis would be cut, while some would get transfer offers.

The Johnson & Johnson Spring House employees, who are not represented by a union, will lose their jobs Jan. 8, the company said in a notice to the Pennsylvania Department of Labor and Industry.

The notice said that these workers did not have bumping rights but would be offered the opportunity to apply for jobs at other J&J locations in the country.

As of April 2008, Johnson & Johnson Pharmaceutical Research & Development L.L.C. employed 680 in Spring House, where the company said prescription medicines, including Topamax, Ultram, and Ultracet, were developed.

The company had announced Thursday that, by 2012, it would close research-and-development facilities in Radnor and Chesterbrook and consolidate those operations at its Spring House site.

Johnson & Johnson, which is based in New Brunswick, N.J., would not disclose the number of jobs currently at those sites or the number that would remain after the consolidation. In 2008, the company said it employed 5,100 people in this region.

The company's Philadelphia-area operations include McNeil Consumer & Specialty Pharmaceuticals in Fort Washington, Centocor Inc. in Horsham and Malvern, and pharmaceutical research and development in Spring House.

 


Contact staff writer Miriam Hill

at 215-854-5520 or hillmb@phillynews.com.

 

Comments   
Posted 06:36 AM, 11/10/2009
flintstoner
note the typical coddled "worker" fast tracking to the "lav" to do some "R & D" with a newspaper...
Posted 08:27 AM, 11/10/2009
Shabba Rommel
Think this is bad? See what happens if the "public option" passes. If the government becomes the sole provider of health care (which is inevitable), then there will be no need for the health care industry to employ all those sales and marketing folks. We will see layoffs in the tens of thousands.
Posted 09:41 AM, 11/10/2009
shnuggleshnee
Shabba Rommel- yet more people will have health care...
Posted 11:43 AM, 11/10/2009
Captain Splendor
You'll have to excuse Shabba, he's brain dead.
Posted 12:08 PM, 11/10/2009
Politburo
There was never a need to employ those sales and marketing folks in the first place.
Posted 12:34 PM, 11/10/2009
Murrayman
Well at least posters understand that Shabba is a blabbering fool. I've heard all of the fear-mongering among the Rep. leadership (read: radio talk show hosts) speaking of the inevitability of having the government INSURANCE option being the sole provider of benefits due to unfair competition (or whatever else they come up with). Yet they don't really give a compelling argument why it is inevitable. And they completely ignore the fact that if people CHOOSE the gov't. option, then hasn't the free market spoken? Strangely enough Pharma seems to support the option. They must be mistaken why would they lobby for legislation that crushes them? Maybe any one sector realizes that they have very little price priority and that ALL costs are spiraling? Maybe. I'm sure that the gov't insurance option will dictate to doctors exactly which medications cannot be prescribed. There will be guidelines, sure, but doctors having no choice? Hmmm...
Posted 01:03 PM, 11/10/2009
MattPSU
The real problem is when the single payer system refuses to pay companies like pfizer enough to develop specialty drugs. Then they are really in trouble. A lot of good high paying jobs in the region are in jeopardy.
Posted 01:08 PM, 11/10/2009
SuperD
As having participated in gov't run insurance from other counties, i would tell the American people to be careful what you ask for in a public option. Enjoy all the services you take for granted now under your current health plans because you may/may not have them under a public option. And for some of those basic services you are so use to having on demand, well prepare to wait for them under a public option. FYI, I am definitely for a health care reform, but I don't believe a true public option is the path to go.
Posted 02:14 PM, 11/10/2009
Montco PA Dem
Perfect. On the day this deal was finalized, Vereb, Rafferty and Dinniman announced jointly that "the planned merger of Pfizer Inc. and Wyeth will not result in layoffs." Yeah, right. It was obvious then that they had been played for fools by Pfizer, and this just proves it. Go back and read the Oct. 15 story: http://tinyurl.com/yzujmsu.
Posted 07:05 PM, 11/10/2009
94Bravo
For all you posters attacking Shabba Rommel (who gets it, BTW), keep it up. A nationalized healthcare boondoggle will make 10.2% unemployment look like child's play. Expect 20% or more as frightened small employers lay off hundreds of thousand in anticipation of being forced to provide health insurance for all. That's how it will work. How else can it? ,
10 comments
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