1 Feb 2011

Pfizer to close UK research centre risking 2,400 jobs

US drug maker Pfizer is to close its major UK research centre, a decision described as a “shocking wake-up call” by British scientists. Faisal Islam looks at the impact on the UK economy.

Pfizer has announced plans to close its major UK research centre (Getty)

Pfizer said it hoped to secure the transfer of several hundred jobs to other sites or partner companies.

The decision to close its research centre in Sandwich, Kent is part of an overhaul of its research and development (R&D) operations worldwide.

Pfizer also has operations at Walton Oaks in Surrey, Maidenhead, Aberdeen and a R&D site at Cambridge.

The group said no other sites would be affected by today’s announcement.

The Sandwich site is the European hub of Pfizer’s global R&D division and is responsible for major discoveries such as blockbuster drug Viagra.

The site also covers allergy and respiratory R&D – an area from which Pfizer plans to pull out.

“This decision is no reflection on the site, the workforce or the operating environment in the UK.” Pfizer’s Dr Ruth McKernan

It currently employs around 5,000 across all operations in the UK, but is aiming to reduce this to 3,000.

Pfizer is slashing R&D spend across the group on top of targeted cost savings of up to £3.1bn by the end of 2012.

Dr Ruth McKernan, senior vice-president and site head at Sandwich, said: “It is with a deep sense of sadness that we announce our proposal to exit our site in Sandwich, Kent.

“It has played an important role in the discovery and development of medicines and has brought many life-saving treatments to patients.”

She added: “This decision is no reflection on the site, the workforce or the operating environment in the UK. We recognise that this is a difficult time for colleagues and the community and our priority now, and over the coming weeks and months, is to support our people through this process.”

While it is axing the Sandwich base, Pfizer plans to base a new pain and sensory disorders unit in Cambridge.

The latest job cut news follows plans announced last May to axe 6,000 roles worldwide, with Ireland one of the worst-hit countries as three out of its eight sites were earmarked for closure.

‘Shocking wake-up call’

British scientists have reacted with concern to the announcement by Pfizer.

Colin Blakemore, Professor of Neuroscience, University of Oxford, described the news as a “shocking wake-up call”.

“We must respond to this signal that one of our most important industries no longer has confidence in the future of British science.” Prof Colin Blakemore

He said: “The pharmaceutical industry will go where it can recruit the best trained scientists and can interact with the best university researchers.

“That is what they used to value in this country. We must respond to this signal that one of our most important industries no longer has confidence in the future of British science.”

Dr Richard Horton, Chief Editor of The Lancet, said: “Historically, Pfizer has made an unprecedented commitment to research and development in the UK.

“The closure of its Sandwich facility is a terrible blow, locally and nationally.

“The government, together with leaders in medical research, must do all we can to foster an ever closer link between our world-leading medical research workforce and the research-based pharmaceutical industry.

“At a time of a global recession in research, the only sustainable solution for UK medical research – and so the quality of NHS care – is to forge a stronger, more confident, and closer linkage with industry.”