The world's biggest pharma firm had initially decided to close the site as part of a major restructuring strategy announced earlier this year and aimed at saving on costs, but is now planning to transform the Japanese unit into a venture company, Pfizer Japan president Hiromitsu Iwasaki told Reuters on Friday.
With investments from Japanese, US and European banks and funds, the unit, Pfizer Global Research & Development Nagoya Laboratories, in central Japan will become a company that focuses on new pharmaceutical compounds for digestive disorders and pain relief, Iwasaki was reported saying.
Of the Japanese site's 380 employees, 80 will be transferred to the new company.
"Whether Pfizer will take part with an equity stake is undecided," Iwasaki told journalists during a press conference.
However, Iwasaki remained tight-lipped about any financial details of the currently held negotiations with potential investors.
Meanwhile, the newly formed company would also conduct clinical trials in the future, according to the report.
Currently clinical trials are conducted by the Clinical Development Group, called "J-clin" and based at Pfizer Japan's headquarters in Shinjuku, Tokyo.
J-clin functions as Pfizer's clinical development organisation, dedicated to the promotion of information exchanges and collaborative efforts with other Pfizer R&D facilities.
Vast amounts of clinical data are available from Pfizer US and Europe, and J-clin works to make effective use of it, the company said.
The drug maker was unavailable to comment at the time of publishing.
Pfizer has recently adopted a strategic approach with clinical outsourcing in Japan, a company spokesperson said recently at the Drug Information Association (DIA) meeting in Atlanta.
Patrick Floody, director of the Study Management Group at Pfizer Japan, told the conference that his company had recently confirmed an agreement with domestic contract research organisation for a preferred partner arrangement as part of a clinical project.
Although Japan is the world's second largest drug market, it represents only 15 per cent of the total global spend on clinical development, delegates heard during a presentation at DIA.
Japanese clinical trial sponsors spend only about 11 per cent of total development costs on outsourcing - compared with 24 per cent globally - according to Chris Albani, a partner of consultancy firm Pharmaceutical Industry Lead Pittiglio, Rabin, Todd & McGrath (PRTM) Japan.