Pfizer Brings Therapeutic Innovation to Boston

Research-based pharmaceutical company Pfizer

plans to invest $100 million in Boston over the next five years, in an effort to improve the results of its research efforts. The money will fund a new initiative, the Centers for Therapeutic Innovation. Through this collaboration, which sees the company team up with local hospitals and academic research institutions, Pfizer hopes to discover new drugs and medicine, as well as increase its efficiency in research and development. The initiative should also allow for new job creation, therefore helping the local community. “We are thrilled that Pfizer has chosen Boston as the location for its newest Center for Therapeutic Innovation -- which will also serve as the program's world headquarters,” said Mass. Governor Deval Patrick. “Pfizer's decision to increase its investments in Massachusetts is further confirmation of the kind of world-class expertise our state can offer the life sciences industry.” The

reported conflicting viewpoints on the investment benefit of the initiative. Erik Gordon, an analyst and professor at University of Michigan's Ross School of Business thinks the investment of approximately $20 million a year for the next five years is a relatively small price to pay for the possible benefit of new discoveries. Meanwhile, Steve Brozak of WBB Securities thinks the investment is merely enough to cover some overhead costs, and not enough to lead to new discoveries. Last year, Pfizer spent $9.4 billion on research and development, so if the $100 million investment leads to any significant discoveries, then Pfizer will have hit a home run. If not, the small price tag should do little damage to Pfizer's bottom line.