GlaxoSmithKline leases Upper Merion, Pa., manufacturing site to Pfizer.

Byline: Thomas Ginsberg

Jul. 19--Pfizer Inc. will take over a manufacturing site in Upper Merion from GlaxoSmithKline P.L.C. while production there is phased out, possibly in three years, both companies said yesterday.

The lease agreement avoids next year's scheduled closure and layoff of 230 employees, most of whom work on animal-health products. Pfizer agreed to provide GlaxoSmithKline employees "comparable benefits" for at least three years but gave no other details.

"By continuing the production of our products at the Upper Merion facility, Pfizer will be able to ensure the consistent and seamless supply of its animal health medications," said Nat Ricciardi, president of Pfizer Global Manufacturing, said in a Pfizer statement.

The GlaxoSmithKline site is known as Buildings 16 and 16A, located at 801 River Road, Conshohocken. They are separate from about 30 other corporate buildings in Upper Merion with about 3,000 employees, the company said.

GlaxoSmithKline produces a variety of animal-health products at the site, including several drugs on contract for Pfizer. It also produces its own human cancer drug, Hycamtin.

Pfizer now will manufacture its products there itself, part of animal-health business that generated $878 million in sales last year, according to Pfizer's latest annual report.