Pfizer cost-cutting is bid to raise share price

SOME people fear that yesterday’s decision by Pfizer to scale back its Irish operations could prove to be as important as the day when the US pharmaceutical giant decided to set up operations back in 1969.

They worry this could be the beginning of the end of large-scale, foreign direct investment by pharmaceutical companies manufacturing high-cost drugs and delivering well-paid jobs to thousands of Irish workers. However, their understandable anxiety is over-played.

A combination of factors conspired to result in Pfizer, the world’s largest drugmaker, unveiling plans to sell two Irish manufacturing plants and shut down part of a third facility as the company seeks to reduce global costs by as much as €1 billion. Close to 540 Irish jobs are on the line.