Pfizer Considers Outsourcing Up To 30% Of Manufacturing

Pfizer Inc. said recently it is looking to outsource as much as 30% of its manufacturing, much of it to Asia. NY-based Pfizer currently outsources about 15% of its manufacturing capabilities. The drug company aims to double that figure, as part of cost-cutting measures, it said at an investor presentation in Hong Kong, that was broadcast over the Internet.

Pfizer didn't give a timetable or specify the Asian countries it is targeting. A company rep said during the presentation for a lot of this work, it makes sense to outsource to lower-cost areas, from NY or elsewhere in the U.S. to Asia.

The outsourcing plans follow Pfizer's announcement at the beginning of the year that it would shut down manufacturing sites in Brooklyn, NY, and Omaha, NE, and sell a third manufacturing site in Feucht, Germany. These cuts, along with the closure of several research sites, were part of a companywide plan to cut its world-wide work force by 10%, or 10,000 jobs, and save $2B. Pfizer isn't the only pharmaceutical company to talk about such a move. AstraZeneca said recently that it would start shifting manufacturing operations to Asia. Like other pharmaceutical companies, Pfizer is facing tepid growth amid encroaching generic competition and the lack of clear blockbusters in its drug pipeline. Pfizer's new president of global R&D said he