Pfizer cuts, anticipating Lipitor patent cliff

Pfizer is one of several drug companies facing a "patent cliff" as their blockbuster drugs lose exclusivity.

"Pfizer faces an unprecedented challenge in November, when Lipitor loses U.S. marketing exclusivity. Pfizer bought Wyeth last year for US$67-billion to replace vanishing Lipitor revenue, but has failed to sufficiently bolster its drug portfolio.

More than a half dozen other Pfizer drugs also lose U.S. patent protection in the next few years, including Viagra and Xalatan for glaucoma."

In response, Pfizer is slashing its 2012 R&D budget by $2 billion.

This is particularly bad news for the UK

"Among the cuts, Pfizer will close its huge research and development centre in Sandwich, southern England, which employs 2,400 people, dealing a major blow to Britain's scientific jobs base."

As part of its strategy, its expected that Pfizer will make greater use of Contract Research Organizations (CROs) rather than doing their research in-house. Here's two located in Toronto.