Governor Granholm Optimistic about Pfizer, Reviewing Florida Disease Management Program

Governor Jennifer M. Granholm today said that after many productive discussions with Pfizer officials, she is optimistic about an announcement by the world’s largest drug manufacturer that its global reorganization will result in more Pfizer employees in Michigan than in any other state in the nation.

“Pfizer has made some difficult decisions to remain competitive but reflects a realization that Michigan is a critical link in their business model,” Granholm said today. “Pfizer will continue to be one of our most valuable and growing employers, and our long term relationship with the company is going to be exceedingly positive.

“We want to assist Pfizer in maximizing the job and economic growth potential it has outlined for Michigan as well as help those workers who will not be a part of Pfizer’s future,” Granholm added. “The fact that Kalamazoo County will be home to the largest Pfizer manufacturing site in the United States is great news for the community and the state.”

The company announced its plans for $2.5 billion in cumulative cost savings worldwide through 2005 as a result of its recent acquisition of Pharmacia.

The ongoing discussions between Michigan and Pfizer have led to several other positive developments.

First, after receiving input from Pfizer officials on the state’s Pharmaceutical Best Practices Initiative, Granholm has asked state officials to review Florida’s disease management program that Pfizer has supported. Under that plan, Pfizer provides financial assistance to the state to support a disease management program and guarantees a specified amount of cost savings.

Second, the company was impressed with the aggressiveness and speed of the Michigan business case presented over the past several months. Given today’s announcement, the company will not be able to take advantage of the incentive package but did express that Michigan is a front-runner for future growth.

“Once the company makes the necessary cuts to remain competitive, they will be poised for future growth,” Granholm said. “Pfizer recognizes our state has the skilled workforce and business incentive tools this world class company needs to grow and succeed.”

Among the highlights of the Pfizer announcement are the following:

Kalamazoo County:

• Two global research centers of expertise – Drug Safety Evaluation and Pharmaceutical Sciences – will be established at these operations.
• Kalamazoo County will become one of two principle sites for Veterinary Medicine R&D (VMRD). Due to this designation, principal Veterinary Medicine Research & Development (VMRD) sites for Pfizer Animal Health and other VMRD functions will be transferred to Kalamazoo County from other states.
• Pfizer’s Drug Safety Evaluation program and Pharmaceutical Sciences operation will be located in Kalamazoo and Portage.
• Pfizer’s Global Manufacturing will remain the company’s largest manufacturing presence in Kalamazoo County.
• The U.S. headquarters for Diagnostics will be in Kalamazoo.

In Ann Arbor:

• The Pfizer laboratories will continue as a major Pfizer Research and Development site.
• Staffing levels and the number of new projects in Ann Arbor are expected to increase.

In Holland:

• Pfizer’s manufacturing presence will remain at this location with the Pharmaceutical Sciences operation scheduled to be closed.

Prior to today’s announcement, Pfizer employed approximately 10,000 Michigan workers with facilities in Kalamazoo, Richland Township, Texas Township, Portage, Holland and Ann Arbor. The Kalamazoo County employees make up more than 6,300 of those workers.