CBC News (Canada) (02/02/12)
The pharmaceutical research cluster in Montreal has taken a hit recently as drug makers close labs and research & development centers in response to the loss of patent protections and stricter regulations. AstraZeneca recently closed its R&D facility in Quebec, cutting 132 jobs, a move that come not long after the closure of Sanofi-Aventis and Johnson & Johnson's respective R&D centers and the combined layoff of 226 employees and Merck & Co.'s closure about 18 months ago of its lab in Montreal, cutting 200 jobs. The closures are in preparation for revenue loss that will be suffered when blockbuster drugs lose their patent protection, as Pfizer's Lipitor did last year. AstraZeneca stands to loose protection of Crestor, Nexium, and Seroquel, each of which brought in close to $5 billion a year. The drug maker is cutting 7,300 jobs worldwide, with 1,800 from 14 R&D sites, a move that could push many skilled employees to transition to smaller local firms, as has happened in Montreal. Some argue that federal governments need to ensure a competitive environment by adopting intellectual property measures, to help spur more developments in drugs.