Jobs under threat as Pfizer halts production of experimental drug
Pfizer, which operates six manufacturing facilities in Cork and Dublin, has cut off all clinical trials and development of Torcetrapib, a cholesterol treatment drug that was expected to become its biggest earner.
A special plant to manufacture Torcetrapib was opened by Enterprise Minister Micheál Martin in Cork last year at a cost of $90 million. It was not grant-aided by the Industrial Development Authority (IDA) and Pfizer bore the total cost of the facility. The company is expected to make an announcement later today regarding its future but the IDA hopes to persuade Pfizer to find an alternative use for the facility.
Pfizer has said it will be slashing 2,200 jobs in the US alone and industry analysts predict that this figure could soon rise to 10,000. The company employs over 2,000 people in Ireland, including 40 specifically employed to make Torcetrapib at the new plant in Loughbeg, Ringaskiddy.
A spokesperson for SIPTU, which has almost 1,000 of its members employed by Pfizer, said yesterday it would be making early contact with the company to consider the implications of the decision.
A Department spokesperson said the Minister would be in contact with Pfizer through the IDA.
Pfizer halted work on Torcetrapib, which was designed to raise levels of “good” HDL cholesterol, because of increased deaths and heart problems among patients given the product in a late-stage trial.
The decision is devastating to Pfizer, which had been counting on the drug to revitalise stagnant sales that have been hit by numerous patent expirations on key products.
It was spending around $800 million to develop Torcetrapib, which was supposed to fill the void when its best-selling drug, cholesterol treatment Lipitor, loses patent protection in either 2010 or 2011. As early as March of last year, the company said it hoped to fast-track development of the drug and have it on general sale by 2008.
Lipitor sales totalled $12.2bn last year and sales of Torcetrapib were expected to bring in more than $15bn (€12.3bn) annually.
“This is obviously unfortunate because this was the biggest opportunity in their pipeline,” said Barbara Ryan, an analyst at Deutsche Bank. “Clearly there is pressure on them to do cost cutting.”
Pfizer will likely slash staff and accelerate merger and licensing deals as the pressure on it to improve its financial performance intensifies after the announcement.
Last week, Pfizer announced it was cutting 20% of its US sales force. However, Ms Ryan said Pfizer may lay off as many 10,000 people in the near future. Pfizer employs roughly 100,000 people worldwide.
Pfizer, which began operating here in 1969, has nine facilities in Ireland — six manufacturing, two services operations and a bank. Its presence is hugely beneficial to the Irish economy. Apart from its annual wage bill of €160m, it spends €300m on goods, services and capital investment every year.
An IDA spokesperson said last night it would be encouraging Pfizer to find an alternative use for the $90m plant.
