AstraZeneca (AZN), GlaxoSmithKline (GSK) Pfizer (PFE), Novartis (NVS) Shrinking R&D Investment

With patents running out on many of their key drugs, pharmaceuticals like AstraZeneca (NYSE:AZN), GlaxoSmithKline (NYSE:GSK) Pfizer (NYSE:PFE) and Novartis (NYSE:NVS) are cutting back on their research and development spending and departments, as they won't be able to sustain them once the patents end.

Weak pipelines are part of the problem, along with the increasing difficulty in getting drugs they're working on approved for use.

Novartis announced today it is getting rid of about 500 jobs at its Horsham site in southern England, not long after Pfizer slashed R&D jobs at a major site in the country.

Consolidation of their R&D departments will be the practice in the near term for the large companies, as they face growing frustration from shareholders on the weak returns over the last several years.

GlaxoSmithKline was trading at $36.67, down $0.94, or 2.50 percent, as of 1:25 PM EDT. AstraZeneca was at $45.13, falling $1.20, or 2.59 percent. Novartis was trading at $52.88, dropping $0.79, or 1.47 percent. Pfizer was at $19.40, losing $0.36, or 1.85 percent.