Pfizer Inc. (NYSE:PFE) has opted to close down four of its legacy distribution units that it acquired in the buyout of Hospira last year. Pfizer will then consolidate its distribution in two of its logistics centers in Memphis, TN and Pleasant Prairie, WI within the next year. The four units that will be closed down are in Atlanta, Dallas, Los Angeles and King of Prussia, PA. A total of 104 jobs will be cut during the process.
According to a Pfizer spokesperson the decision to consolidate the logistics centers will enable the company to be more efficient, improve their overall effectiveness, reducing costs and allowing the company to be in a better position to competitively support its products to customers.
Pfizer’s decision comes only a few months after it noted that it would close its 50,000 square-foot Hospira manufacturing facility in Boulder, Co resulting in the loss of 100 jobs by 2019. Pfizer pointed out that the facility was underutilized hence the decision to close it.
Since the acquisition of Hospira by Pfizer, the drug maker has seen significant gains. In Q2 earning release held earlier this month, it reported that Hospira buyout helped boost revenue by 11% to $13.5 billion. This result surpassed analysts’ expectations. According to the company, without the Hospira boost, sales at its Essential Health unit would have slipped by 3 to 6%.
In other Pfizer news, a federal court has ruled that Pfizer’s lower-priced version of Johnson & Johnson (NYSE:JNJ) autoimmune disease drug Remicade does not infringe on any patent. This decision clears the way for the drug sale starting in October. Remicade is Johnson and Johnson’s largest product by sales. It accounted for $6.56 billion in sales last year. J&J has already indicated that it will be appealing the decision.