Pfizer To Outsource 30% Manufacturing Business

The world's largest pharmaceutical manufacturer Pfizer Inc. plans to outsource 30% of its manufacturing business, most of which will be transferred to Asian companies, Martin Mackay, president of Pfizer Global Research & Development, disclosed at the investor conference in Hong Kong on November 30.

The move is Pfizer's another effort to slash cost. Having great market potential, China is considered to be one of the most important target countries to fulfill the plan, according to Mackay.

Besides the transformation about production, the company has tried other approaches to bring down cost. To reduce USD 20 billion operating expenses in 2008, Pfizer announced at the beginning of 2007 that the company would lay off 10,000 employees in two years and close plenty of its factories as well as development and research centers.

The number of its pharmaceutical factories will globally reduce to 48 in 2008 from 93 in 2003.

These actions are taken to cope with the challenges Pfizer are facing these days, such as patent expiration of some drugs, rising competition from imitated drugs and risks from new drug R&D. And the saved money will be used to develop new drugs.

SOURCE: Pfizer Inc.