# Pfizer to invest more than $2.5 billion to expand European manufacturing Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-12-02 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Pfizer Invests Over $2.5B in Plants Amid Patent Expirations Meta Description: Pfizer is expanding its drug making plants in Belgium and Ireland with $2.5 billion investment, gearing up for new product launches and revenue growth. URL: https://financedigest.com/pfizer-to-invest-more-than-2-5-billion-to-expand-european-manufacturinghtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-12-02t130455z1lynxmpeib10kirtroptp4pfizer-europe-1736814777945-compressed.jpg) By Michael Erman NEW YORK (Reuters) -Pfizer Inc is investing more than $2.5 billion at its drug making plants in Belgium and Ireland, gearing up to launch new products it hopes can replace lost revenue as patents expire and COVID-19 vaccine sales decline. The drugmaker said on Friday it plans to spend more than 1.2 billion euros ($1.26 billion) to expand its Puurs, Belgium, manufacturing site, matching the investment at its Dublin, Ireland, plant announced on Thursday. In Belgium, some [projects related to the investment](https://www.financedigest.com/investing-trends-and-projections-for-2023.html "Investing Trends and Projections for 2023") announced on Friday are already underway, with others planned to begin early next year, Pfizer said in a press release. At the plant in Ireland, expansion is expected to begin in 2024 and to be completed in 2027, the company said. The Puurs site has played a key role in the production of COVID-19 [vaccine shots](https://www.financedigest.com/fda-advisers-back-the-same-covid-vaccine-for-initial-shots-boosters.html "FDA advisers back the same COVID vaccine for initial shots, boosters") Pfizer developed with its German partner BioNTech using messenger RNA (mRNA) technology. Output started there in late 2020 when [Europe and the United States began rolling out shots to tackle](https://www.financedigest.com/role-cash-tackling-issue-financial-inclusion-europe.html "The role of cash in tackling the issue of financial inclusion in Europe") the pandemic. It is all aligned with the growth of our pipeline,” Pfizer Chief [Global Supply Officer](https://www.financedigest.com/black-panther-sequel-ignites-box-office-with-330-million-global-debut.html "‘Black Panther’ sequel ignites box office with 0 million global debut") Mike McDermott told Reuters. If you [project out the capacity modeling](https://www.financedigest.com/global-graphchain-project-fermat-announces-distributed-governance-model-featuring-contribution-contracts.html "Global Graphchain Project FERMAT Announces Distributed Governance Model Featuring Contribution Contracts") for these two sites … you’ll find a gap in our ability to serve that (growth). So this is proactive investment,” he said on Thursday. Pfizer’s revenue is expected to top $100 billion this year – more than double its [pre-pandemic level](https://www.financedigest.com/fraport-sees-2023-passenger-traffic-at-80-90-of-pre-pandemic-levels.html "Fraport sees 2023 passenger traffic at 80-90% of pre-pandemic levels") – on the strength of sales of its COVID-19 vaccine and treatment Paxlovid. But COVID-related sales are expected to drop sharply over the next few years, and [Pfizer also faces](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation") the loss of patent protections for some big-selling medicines after 2025, such as cancer treatment Ibrance and arthritis drug Xeljanz. The sizeable [investment and creation of jobs in Europe comes at a critical time for the region as companies struggle with soaring](https://www.financedigest.com/international-investment-soars-as-albania-steps-into-global-spotlight.html "INTERNATIONAL INVESTMENT SOARS AS ALBANIA STEPS INTO GLOBAL SPOTLIGHT") costs of energy, labour, raw materials and credit, fuelling worries over a recession. The [crisis has hit](https://www.financedigest.com/analysis-forget-showering-its-eat-or-heat-for-shocked-europeans-hit-by-energy-crisis.html "Analysis-Forget showering, it’s eat or heat for shocked Europeans hit by energy crisis") energy-intensive industries, such as fertilisers and chemicals, particularly hard, prompting some to shift manufacturing to locations where cheap energy is abundant, such as the United States. Drug manufacturers have also warned that [energy costs risk](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target") undermining the recent push to boost generic medicines production in Europe to make the region more self-sufficient. NEW MEDICINES Pfizer hopes to introduce as many as 19 new medicines over the [next year](https://www.financedigest.com/cepsa-to-nearly-double-investments-over-next-3-years-as-profit-soars.html "Cepsa to nearly double investments over next 3 years as profit soars") and a half, including treatments for ulcerative colitis and migraines, as well as its vaccine for respiratory syncytial virus (RSV). Our [portfolio is strong and requires an expansion](https://www.financedigest.com/iberdrola-hires-barclays-to-sell-stake-in-spanish-renewable-portfolio-expansion-says.html "Iberdrola hires Barclays to sell stake in Spanish renewable portfolio, Expansion says") of our network to accommodate these new products that will really make an impact,” McDermott said. The new products produced at the plants will cover various [therapeutic areas including rare diseases](https://www.financedigest.com/the-addisons-disease-therapeutics-market-to-be-thematically-digital.html "The Addisons Disease Therapeutics Market to be thematically digital"), inflammation and immunology, he said. The expansion in Ireland will add around 400 to 500 [jobs and allow it to double the amount of drug substance it makes at the site](https://www.financedigest.com/ford-to-make-call-on-europe-job-cuts-by-mid-feb-as-buyers-circle-german-site.html "Ford to make call on Europe job cuts by mid-Feb as buyers circle German site"), which produces material for complex biologic drugs and vaccines. In Belgium, Pfizer is expanding the Puurs site’s [capacity to finalize and bottle](https://www.financedigest.com/russias-ochakovo-ups-soft-drink-bottling-capacity-as-western-rivals-leave.html "Russia’s Ochakovo ups soft drink bottling capacity as Western rivals leave") doses of drug substance. It is also [expanding its packaging and cold storage capabilities](https://www.financedigest.com/de-surinaamsche-bank-expands-relationship-with-fiserv-to-upgrade-core-banking-platform-and-add-new-digital-banking-capabilities.html "De Surinaamsche Bank Expands Relationship with Fiserv to Upgrade Core Banking Platform and Add New Digital Banking Capabilities") there. The new [projects will result](https://www.financedigest.com/how-to-juggle-multiple-software-projects-with-great-results.html "How to juggle multiple software projects with great results") in an additional 250 jobs at the Belgian plant, whose workforce has grown to 4,500 people from 2,800 before the pandemic. Pfizer has also been spending significantly to [expand its manufacturing](https://www.financedigest.com/erm-advanced-telematics-set-to-expand-its-offering-for-vehicle-manufacturers-and-importers.html "ERM Advanced Telematics set to expand its offering for vehicle manufacturers and importers") capacity in the United States. The New York-based drugmaker has [announced plans](https://www.financedigest.com/eu-announces-plans-to-lead-green-industrial-revolution.html "EU announces plans to lead green industrial revolution") to expand its Kalamazoo, Michigan, Rocky Mount, North Carolina, and McPherson, Kansas, plants. It has also said it will [spend close to $1 billion](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros") to boost its ability to produce gene therapies at sites in Massachusetts and North Carolina. ($1 = 0.9530 euros) (Reporting by Michael Erman in Maplewood, NJ; Editing by Josephine Mason, Alexander Smith and Mark Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---