The Incredible Shrinking Pharma Industry

(MoneyWatch)  It's not just layoffs anymore. The market-research firm Industrial Info Resources notes in a recent report that pharma plans to shutter 26 plants and research facilities across North America, in addition to the tens of thousands of sales reps, scientists and manufacturing-plant workers big drugmakers are letting go. Those closures also follow the shutdown (or notification thereof) of 77 other industry sites since 2007, which together employed 14,000 people.

From Pharmalot's Ed Silverman, who apparently shelled out $9.95 for the full report:

Among the 26 that are still scheduled to be shuttered is an AstraZeneca facility in Ontario; a pair of Biovail plants in Puerto Rico; a Bristol-Myers Squibb facility in Puerto Rico, and a Barr Pharmaceuticals plant in New Jersey. And here's another Biovail plant that will go.

"Some of the plants targeted for closure will undoubtedly be reopened by others. With companies eager to shed the buildings, and often the equipment inside, some good deals come on the market--Others, like Pfizer in Michigan, are donating buildings and equipment to local colleges, universities and economic development boards to bolster education and, ironically, new job creation for emerging companies," according to IIR.

Smoking in bed while the house is on fire, indeed. The World of DTC Marketing blog concurs:

Marketing budgets are being cut by blue chip marketers, DTC budgets are being cut and if you think this is the worst "you ain't seen nothing yet!" With the pharma industry in black hole of transition to new business models that will finally work and Genentech blind sided by Roche's bid to buy the whole company many marketing people had better start updating their resumes as rumored deep cuts in marketing may finally become a reality with an industry struggling to be profitable and develop new drugs....

What is so sad is that pharma's addiction to blockbusters is partially responsible for this mess. With the huge revenues of these products pharma could spend money like a drunk monkey in a banana store. However the dark side is that blockbusters lead to an addiction for more blockbusters and they don't appear out of thin air. Fasten your seat belt it's going to get a lot more bumpy.

Image via Flickr user Keith JM G, CC 2.0