Pfizer Outlines Its Supply Strategy - Pharmaceutical Technology

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Pfizer Outlines Its Supply Strategy
John Kelly, vice-president of strategy and transitioning sites for Pfizer Global Supply, discusses the company's manufacturing and supply strategy and network.

PTSM: Pharmaceutical Technology Sourcing and Management
Volume 7, Issue 11

Pfizer's strategy includes plans to discontinue operations at three solid-dosage sites in Caguas, Puerto Rico; Loughbeg, Ireland; and Rouses Point, New York. Pfizer also announced plans to phase out pharmaceutical solid-dosage manufacturing in Guayama, Puerto Rico, but that site will expand its consumer-healthcare operations. Reductions are planned at two other solid-dosage facilities in Illertissen, Germany, and Newbridge, Ireland. Two aseptic facilities that make sterile injectable medicines were targeted for exit: Dublin, Ireland, (recently sold to Amgen), and Carolina, Puerto Rico.

Pfizer also announced changes to its biopharmaceutical-manufacturing network. The company said it planned to exit operations in Shanbally, Ireland (recently sold to BioMarin), and Pearl River, New York. The Pearl River site, however, will remain Pfizer's center of excellence for vaccine R&D. Biotechnology plants in Sanford, North Carolina, Andover, Massachusetts, and Havant, United Kingdom, are expected to see reductions. Pfizer reported plans to cease production of consumer-healthcare products at its plant in Richmond, Virginia (sale of the facility to Fareva was recently completed), but consumer healthcare R&D operations will continue in the downtown Richmond site.

Most recently, Pfizer announced plans to exit solid-dosage sites in St. Petersburg, Florida, and Bristol, Tennessee, as well as an animal-health diagnostic manufacturing site in Lyon, France.

In outlining the changes to its manufacturing network, Pfizer summarized how its transformed manufacturing network will look. Pfizer's solid-dosage network will include plants in Freiburg, Germany; Amboise, France; Vega Baja and Barceloneta, Puerto Rico; Ascoli, Italy; Newbridge, Ireland; and Illertissen, Germany. Its aseptic-manufacturing network will consist of plants in Puurs, Belgium; Perth, Australia; Catania, Italy; and Kalamazoo, Michigan. Its biotechnology-manufacturing network will consist of sites in Grange Castle, Ireland; Strangnas, Sweden; Algete, Spain; Havant, United Kingdom; Andover, Massachusetts; and Sanford, North Carolina. The consumer healthcare network will include plants in Guayama, Puerto Rico; Montreal, Canada; Albany, Georgia; Aprilia, Italy; Hsinchu, Taiwan; and Suzhou, Jiangsu, China.

Kelly explained that the changes underway at Pfizer reflect broader trends affecting the pharmaceutical industry. He points to the growing complexity of pharmaceutical companies’ product portfolios and the resulting need for increased flexibility, specialized capabilities, and technological complexity. He also points to a more dynamic market environment, which requires a need to develop and launch products quickly and to respond to pricing and supply changes as well as increased volatility in demand. These factors contribute to greater pressure on margins and a stronger need to reduce costs of goods sold and justify capital expenditures. As supply networks become more elaborate and costly to operate in light of these factors, Kelly says that “more value is placed on fungible assets for improved utilization and efficiency. All this must be done while maintaining focus on quality and compliance, supply reliability, and delivering value to our customers,” he adds.

“There is a critical need for the industry to focus on efficiency gains and value creation,” sums up Kelly. “Through the clarity of our vision and delivering on our strategies, Pfizer will achieve a competitive advantage by offering fast, flexible, and innovative supply solutions,” he concludes.

Click on the following link to listen to a podcast with John Kelly, vice-president of strategy and transitioning sites for Pfizer Global Supply, who discusses the company's manufacturing and supply strategy and network.


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