PFIZER India is in the process of selling off its Chandigarh plant and
has already received a an advance of Rs 27.8 crore from a prospective
buyer. â€œThe products manufactured at Chandigarh came under the open
general licence. It was a fermentation plant used to manufacture animal
feeds supplements. Our cost of manufacturing here was significantly
high as compared to importing it, as a result the plant had become cost
inefficient,â€ a Pfizer spokesperson told ET. The company declined to
disclose the name of the prospective buyer and the amount for which the
plant was being sold. The plant was slated to be closed in 2003.
The sale of this plant, which stopped operations over three years ago, is not part of Pfizerâ€™s global cost cutting plans announced last month but is a strategic decision by the Indian arm, the company said.
Confronted to fierce competition from generic drugsâ€™ makers, Pfizer said it would cut 10,000 jobs globally and close at least five facilities to slash its annual costs by up to $2 billion. The latest cuts come on top of a previously announced plan to cut costs by $4 billion a year by 2008. The 10,000 layoffs amount to about 10% of the companyâ€™s global work force, and include the elimination of 2,200 jobs from the US sales force. Pfizer will close three research sites in Michigan and two manufacturing plants in New York and Nebraska. It also might sell a manufacturing site in Germany and close research sites in Japan and France. The impact on Indian operations at this stage remains unclear.
â€œIn line with the global transformation initiative, we are reviewing our business in order to prepare ourselves for the future. We will have our own strategy to manage this process, as each business in their respective countries face different challenges and opportunities. The details of the local transformation impact are not yet finalised as we are only at the early stage of an on-going process,â€ said Pfizerâ€™s spokesperson.
The measures taken by the worldâ€™s largest drugmaker highlight the challenges faced by big pharma companies. In addition to patent expirations, pharma companies are in a business climate where insurers and other large buyers of medicines are demanding lower prices and more evidence of a productâ€™s worth. Pressure on Pfizer has also intensified since safety issues forced it to halt development of the star drug in its pipeline, which was slated to replace its best-selling drug Lipitor, as it loses patent protection as early as 2010.
Every time an offender stealthily leaves India to take refuge in another country, the Government of India starts all over again with its strategy of bringing him back to the nation to make him stan More
Helplinelaw can set up your session with quality and experienced lawyers to discuss and resolve your legal matters. You can avail consultation in form of sending questions, phone call or webchat discussion More