Pfizer and Merck signal impeding deep cuts in R&D

Pfizer and Merck are starting to release the numbers for their initial cuts in R&D.
However, this article on FiercePharma states:

"These layoffs are just the beginning, of course. Both pharma companies are planning deep cuts to eradicate any overlaps with the companies that they are swallowing. And in another ominous note for Big Pharma's embattled R&D organizations, Merck CEO Dick Clark (photo) told an audience attending a Goldman Sachs event that the company has to look at "the number of research sites you need" post-merger."

The article goes on to state:

"None of this can come as any kind of a surprise at the companies, which have made it clear that the old days of monolithic R&D groups left in complete charge of new drug development are over. They also have to deliver big cuts to investors hungry to see some real synergies following the M&A splurge. The cuts, though, create new opportunities for biotech companies with bright pipeline prospects."

The question is who will oversee drug development then if not R&D?

Pfizer Continues Push Into Generics

According to an article on FiercePharma, Pfizer has entered into deal with the Indian Generics firm, Strides.

According to the article:

"The drugmaker has agreed to source 40 generic treatments--including a bundle of cancer meds--from the Indian firm Strides Arcolab, for sale in the United States. The drugs will be marketed by Pfizer's relatively new Established Products unit, which sells some 600 off-patent products."

The article also noted that:

"...it's not Pfizer's first generics partnership, nor is it the drugmaker's first venture with an Indian generics maker. Last year negotiated for the rights to more than 30 oral generics made by Aurobindo Pharma, for sale in the U.S. and Europe. The deal also included 12 injectable antibiotics."

Pfizer's Established Products unit has only been around for a short period of time.
According to Pfizer's web site:

"Pfizer's Established Products Business Unit (EPBU) was created in 2008 to provide underserved patients with affordable medicines characterized by Pfizer's reputation for quality, safety, and innovation.

Led by David Simmons, President and General Manager, EPBU is a small, flexible unit that leverages Pfizer's strengths to manage the established product portfolio.

Established products are medicines that have lost patent exclusivity or are close to losing their exclusivity. Pfizer has over 380 established products, including many familiar brands such as Norvasc, Zoloft, and Zithromax.

Pfizer's global sales of established products are more than $10 billion annually."

These are interesting developments for Pfizer as a company....and the Pharma Industry as a whole....