In the high stakes game of economic development, score one for New London – a big one. Pfizer Inc., the New York-based pharmaceutical giant, has selected New London to be the worldwide headquarters for Pfizer Global Research and Development, its newly restructured $4.5 billion research and development division. Pfizer will build a $270 million campus of office buildings and employ about 2,000 employees by next year.
Rhode Island officials were disappointed, but not necessarily surprised by the company’s decision.
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John Martin, director of communications at the Rhode Island Economic Development Corporation, said last week that because Pfizer had been going through significant restructuring of late, he was not surprised that the company decided to solidify its research and development efforts in Connecticut. But Martin said the Pfizer officials have assured Rhode Island officials that the Ocean State will remain a candidate should the company expand its operations further.
”We do not think that this closes a door,” said Martin. “No one can predict – inside or outside the company – what its future needs may be for research and development. We will continue to be in touch with Pfizer.”
Pfizer Global Research and Development is in essence an expansion of existing facilities in nearby Groton, said Kate Robins, a company spokesperson. The Groton facility, explained Robins, has reached capacity.
”We have outgrown our space in Groton – and the Thames River is not so wide that you can’t cross it,” said Robins. “And Groton remains fully operational, border-to-border. This is not about picking up any buildings and moving them.”
In fact, said Robins, Groton remains the company’s drug discovery headquarters. The New London facility will house many company executives – the division itself has 12,000 researchers operating in more than 20 countries.
It is in global research that Pfizer is investing so deeply.
Between 1990 and 1998 Pfizer’s research and development increased by 20 percent each year, said Robins. In 1999, she said, the company’s research and development budget was $2.8 billion. In 2000, it is $3.2 billion.
And those numbers are likely to grow. Pfizer is in the early stages of possible merger with the Warner-Lambert Company, yet another pharmaceutical giant.
”If this goes throughwhat happens, is that we are almost doubling in size,” said Robins.
All of which is music to the ears of New London City Manager Richard Brown. How big a coup is Pfizer Global Research and Development for the city of New London?
”It will represent a 12 to 15 percent increase for our grand list (tax base),” said Brown. “It is very significant.”
Brown said that linking New London and Pfizer brings the city “a great deal of prestige.”
”This allows us to go out and attract other biotech companies that want to align themselves with Pfizer,” he said.
That prestige and potential shot-in-the-arm for the biotech community has long piqued Rhode Island’s own interest in Pfizer.
Several months ago, sources told Providence Business News that in fact Rhode Island had been involved in “general discussions” with the pharmaceutical giant. None of the talks, however, reached any formal stage.
From Pfizer’s standpoint, Rhode Island’s attractions would include the ample land and transportation access at the former Navy base at Quonset Point/Davisville – and the fact that Rhode Island is widely accepted to be in commuting distance of Boston and “America’s Technology Highway,” Route 128.
Martin said during a previous interview with PBN that Pfizer and Rhode Island represented a “perfect match.”
Martin pointed out that one of the state’s economic clusters is life sciences, which include biomedicine and pharmaceuticals. He added that the state “has the workforce and infrastructure to be a location for those kinds of companies.”
Even news that Pfizer is making such a commitment to New London is unlikely to squash rumors that someday, somehow the company will have a presence in the Ocean State.
Robins acknowledged that future expansions may not be in the works now, but could evolve.
She explained that the company is constantly searching to cure diseases, and that diseases, as well as lifestyles are rapidly changing.
It is also a company dealing in a world market. Things are bound to change, she said.
”It is a swiftly evolving field – health care,” she said.
That said, Robins would not rule out the possibility that Rhode Island could develop a relationship with Pfizer.
”We can’t say today what might happen in the future,” she said. “Who would have thought a year ago that we might be integrating with Warner-Lambert? We are always scouting possibilities for future growth.”
