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Pfizer: AstraZeneca deal to create 'science power house' Pfizer: AstraZeneca deal to create 'science powerhouse'
(35 minutes later)
Pfizer bosses have told MPs their proposed takeover of British firm AstraZeneca could lead to a "much better outcome for patients".Pfizer bosses have told MPs their proposed takeover of British firm AstraZeneca could lead to a "much better outcome for patients".
Its head of research and development, Mikael Dolsten, said the two firms' drug portfolios were complementary and uniting them could help cancer patients live for "years rather than months". Head of research and development Mikael Dolsten said the two firms' drug portfolios were complementary and uniting them could help cancer patients live for "years rather than months".
But Pfizer's chief executive admitted a merged firm may have fewer scientists.But Pfizer's chief executive admitted a merged firm may have fewer scientists.
The MPs want assurances a takeover would not be against UK interests. The MPs want assurances that a takeover would not be against UK interests.
The chief executive of Pfizer, Ian Read, and senior executives are being questioned by the Commons Science Committee, having appeared before the Commons Business committee on Tuesday. The chief executive of Pfizer, Ian Read, and senior executives were questioned by the Commons science committee, having appeared before the Commons business committee on Tuesday.
'Unprecedented"'Unprecedented"
AstraZeneca boss Pascal Soriot will give evidence later on Wednesday, as will science minister David Willetts. AstraZeneca boss Pascal Soriot also appeared before the committee while Science Minister David Willetts is due to give evidence later.
AstraZeneca is against the current bid of £63bn but its boss told Newsnight he would be bound to consider a new offer - with a higher price a key factor. AstraZeneca has rejected Pfizer's current £63bn but its head has said he would be bound to consider a new offer - with a higher price a key factor.
Wednesday's hearing is focusing on the impact that a takeover would have on the UK's science base.Wednesday's hearing is focusing on the impact that a takeover would have on the UK's science base.
Conservative MP Stephen Mosley said he was "struggling" with the lack of information that the company was providing about the deal while Labour's Jim Dowd suggested many people believed that the firm's track record proved its "word cannot be trusted" Conservative MP Stephen Mosley said he was "struggling" with the lack of information that the company was providing about the deal while Labour's Jim Dowd suggested many people believed that the firm's track record on closing premises proved its "word cannot be trusted".
But Mr Read said the firm had made an "unprecedented and incredible" commitment to base 20% of its research and development operation in the UK and would honour that. But Mr Read said the company had made an "unprecedented and incredible" commitment to base 20% of its research and development operation in the UK and would honour that.
"I would like the committee to tell me a (past) commitment that Pfizer has not met." "I would like the committee to tell me a [past] commitment that Pfizer has not met."
He said the combined firm would not "under-invest" in the business but he could not put a figure on the number of scientists that a merged company would employ. The combined firm, he suggested, would not "under-invest" in the business but he could not put a figure on the number of scientists that a merged company would employ.
"I really do not know how many scientists we will have when we put the two together. We do not have enough data to know that."I really do not know how many scientists we will have when we put the two together. We do not have enough data to know that.
"But I suspect there will be less scientists in the natural arithmetic combination of the two but I have no way of knowing... we may be surprised. We may go in and look and their portfolio and see stuff we were not aware of." "But I suspect there will be less scientists in the natural arithmetic combination of the two but I have no way of knowing... we may be surprised. We may go in and look at their portfolio and see stuff we were not aware of."
Earlier, Mr Dolsten said the two firms had mutual interests in key areas, such as oncology and inflammation drugs, which could result in major advances in treatments. Earlier Mr Dolsten said the two firms had mutual interests in key areas, such as oncology and inflammation drugs, which could result in major advances in treatments.
"There is a lot of opportunity for a powerhouse of science coming together."There is a lot of opportunity for a powerhouse of science coming together.
"The companies have complimentary drugs in lung cancer... and if you have a portfolio like that you could have an aspiration to provide much better outcomes for patients. Instead of thinking about weeks and months combination drugs from the two companies could offer outcomes of many years and longer." "The companies have complementary drugs in lung cancer... and if you have a portfolio like that you could have an aspiration to provide much better outcomes for patients. Instead of thinking about weeks and months, combination drugs from the two companies could offer outcomes of many years and longer."
Price Shareholder value
Pascal Soriot, chief executive of AstraZeneca, told MPs on Tuesday that new drug development could be hit if it were taken over by Pfizer. But Mr Soriot said the strength of the AstraZeneca's drug pipeline - 70% of which is developed in the UK - meant that it could "stand on its own two feet".
But he later told the BBC's Newsnight programme that he would consider a bid from Pfizer if the offer price increased, and that the disruption from the potential deal with Pfizer was "manageable". He suggested that merging the two firms' R&D operations, which are primarily based in the US, Germany and the UK, could lead to "substantial disruption" and the business turning inwards.
Mr Soriot said: "We will consider proposals, offers that are made to us in the context of the value, the price that's offered and the potential of the terms. But certainly the price that is offered is a very important dimension." "A company is a little bit more complicated than putting two pieces of paper together," he said
"We have a fiduciary duty so we cannot rule out doing a deal because ultimately we will have to make sure we represent the interests of our shareholders." But Labour MP Andrew Miller said AstraZeneca was already moving hundreds of jobs from Macclesfield to Cambridge - which in itself was going to create upheaval.
On Tuesday, Mr Soriot told the BBC's Newsnight programme that he would consider a bid from Pfizer if the offer price increased, as it had a duty to its shareholders.
But he told MPs that price was not the only factor and the way the two businesses were integrated would be "critical" in delivering future value for shareholders.
The UK has public interest laws governing certain takeovers, such as those involving defence and media interests, but not for science.The UK has public interest laws governing certain takeovers, such as those involving defence and media interests, but not for science.
But Business Secretary Vince Cable told the committee on Tuesday that blocking a bid could be "tricky". Labour has called for a new test to be applied but Business Secretary Vince Cable told the committee on Tuesday that blocking a bid could be "tricky".