Pfizer to close local R&D operations

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Pfizer employees leave the research building in Chazy on Monday afternoon after the company announced it is consolidating its research and development operations and closing three local sites. Nearly 600 jobs in the North Country will be lost by 2011. (Staff Photo/Kelli Catana)

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November 9, 2009

By DAN HEATH, JOE LOTEMPLIO and STEPHEN BARTLETT The Press Republican Mon Nov 09, 2009, 08:36 PM EST

ROUSES POINT — Pfizer Inc. will be closing its research and development operations in Rouses Point, Chazy and Plattsburgh.

The move will result in the loss of nearly 600 jobs.

“This is terrible news,” State Sen. Betty Little said. “It’s a real blow for the North Country.”

CONSOLIDATION

The global research and development network called local employees together Monday morning to make the announcement.

It comes less than a month after Pfizer completed its acquisition of Wyeth in mid-October.

Chris Loder, Pfizer’s U.S. head of media relations, said the company is consolidating its research and development operations around the globe.

He said the Rouses Point and Plattsburgh operations will close sometime next year, while Chazy will be shut down sometime in 2011.

About 200 jobs are expected to be lost in Rouses Point, 305 in Chazy and 77 in Plattsburgh.

The Chem Pilot operation at Rouses Point, the only part Wyeth didn’t sell to Akrimax Pharmaceuticals, will close.

As a result of the merger with Wyeth, Pfizer had 20 R&D; sites around the world. Those activities will now be done at five main sites: Cambridge, Mass.; Groton, Conn.; Pearl River, N.Y.; La Jolla, Calif.; and Sandwich, U.K.

That work will be supplemented by nine specialized locations around the world, including monoclonal antibody discovery in San Francisco, regenerative medicine work in Cambridge, U.K., and research and development work in Shanghai, China.

‘MORE EFFICIENT’

In a news release, Pfizer said it marked “an important

step in implementing a new R&D; model as part of the integration of Pfizer and Wyeth. This global network brings together scientific strengths from both companies, continues efforts to increase research productivity, focuses disease-area research in single locations and more efficiently uses the company’s real estate.”

Pfizer President of BioTherapeutics Research and Development said consolidating the R&D; operations will allow the company to build the world’s premier biopharmaceutical R&D; enterprise.

“This new structure puts Pfizer in the best position to conduct cutting-edge research within and beyond our own laboratories and to deliver a portfolio of high-impact medicines to patients.”

BLOW TO WORKERS

“We are keenly aware of the difficulties these changes present to our colleagues in the communities where they live,” Loder said.

He said the company will support its employees during the transition.

Little (R-Queensbury) called Gov. David Paterson’s Office, seeking help in minimizing the impact of the loss.

“We will ask Pfizer for help in marketing the facility and hope they don’t just walk away,” she said.

“We will also speak with Empire State Development and come up with a plan. We always hear that we are too far away from New York City, but we are still part of New York state and we need their help.”

Little said hearing closure news like this is frustrating.

“It’s difficult because the companies don’t look for ways to make use of the facility, and all of a sudden they drop this news, and they don’t ask for help beforehand.”

Assemblywoman Janet Duprey (R-Peru) said that while the news was devastating, she has confidence in the community.

“We’re not going to just sit around and wring our hands. We will get going, like we always do.

“But my thoughts are certainly with the workers and their families right now.”

Newly elected U.S. Rep. William Owens said the announcement was difficult news for the local community and local economy.

“I am in touch with local officials and business leaders so we can work to bring new business to these facilities and to our region, so that the hardworking men and women whose jobs were lost can stay and continue working here in the North Country.

“Creating jobs is vital to the future of Upstate New York’s economy and is my top priority as a member of Congress.”

TRANSITION COUNCIL

The Plattsburgh-North Country Chamber of Commerce is organizing a Pfizer Transition Coordinating Council to meet Tuesday morning.

Chamber President Garry Douglas said that although it was obvious the merger placed a question mark over the future of Wyeth’s facilities in the North Country, “it is still deeply disappointing that our highly productive workforce and strong community support were not sufficient to win the day.”

The Pfizer Transition Coordinating Council’s general purpose will be two-fold, Douglas said.

“(It will) maximize assistance to the impacted employees and their families and begin to define how we can best work together to try to market these outstanding facilities and the outstanding workforce for new activity,” he said in a statement.

AKRIMAX

Pfizer leases manufacturing space in Rouses Point from Akrimax Pharmaceuticals, which bought the Rouses Point facility in January 2008.

Akrimax Vice President and Head of Rouses Point Operations Hans Mäder said Monday that their agreement extends to June 30, 2010, but can be extended by Pfizer in six-month increments for two years.

He said the announcement doesn’t affect the Akrimax business plan. That includes keeping the Pfizer employees who are still working when the final transition occurs.

Loder said Akrimax will continue to manufacture legacy Wyeth products after the change.

After the announced Pfizer cuts are made, about 350 workers will tentatively remain to switch over to Akrimax at Rouses Point.