News: Pfizer to Outsource Some Manufacturing to Asia

A few days ago, Pfizer Inc, the world””s largest pharmaceutical manufacturer announced some of its plans for the future. The company has made plans to save money by outsourcing as much as 30 per cent of its manufacturing to facilities in India, China and other parts of Asia. This significant increase in outsourcing of manufacturing capabilities was announced at an investor presentation in Hong Kong.

Among the potential countries considered to take on the outsourcing tasks, China is considered to among the top choices. The problem however, is that the company will cutting 10 per cent of its global work force, or about 10,000 jobs i9n order to cut costs. Manufacturing sites in Brooklyn, New York and Omaha, Nebraska will be closed and a third manufacturing site in Feucht, Germany will be sold as part of the cost cutting measures.

Pfizer is also planning to make research and development spending expansions in China, India, Japan and South Korea. In fact, the company spent $7.6 billion on research and development last year. Asian researchers are currently doing 80 research studies for the major pharmaceutical company.

Officials from the company explained that these measures are aimed at coping with the challenges Pfizer is facing. The atent expiration of some drugs, rising competition from imitated drugs and risks from new drug R&D are all major threats to the company’s well being. Hopefully, the company will be able to use the money to discover new drugs that will help Pfizer recover.

This move will surely be meet with protest from those who will lose their jobs and from people who are opposed to the principle of outsourcing. On the other hand, Asia will benefit from the outsourcing jobs and will be a vital element in the growth of the company.

Explore posts in the same categories: Outsourcing

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