Pfizer (NYSE:PFE) Slashing R&D As Patents Run Out

Saying the company wants to focus on oncology and neuroscience, Pfizer (NYSE:PFE) Spokesman Mackay Jimeson said the company will be cutting R&D jobs in Sandwich, England and Connecticut.

The research center in England will be completely shut down, with 2,400 jobs being lost to the area, although the company said several hundred will be offered a chance to relocate if they choose.

In Groton, Pfizer said they'll be laying off over 1,000 worker in R&D, with an overall, combined goal of saving about $2 billion in R&D by 2012.

The England shut down is expected to be completed in 18 to 24 months, while the cuts in Connecticut in about 18 months. The workforce in Groton will be reduced from 4,500 to close to 3,400 during that time.

Industry observers add that the reasoning is the coming loss of patent protection which will result in the loss of revenue going forward.

Pfizer closed Tuesday at $19.22, gaining $1.00, or 5.49 percent.