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| Pfizer: AstraZeneca deal to create 'science powerhouse' | 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". |
| Head of research and development Mikael Dolsten said uniting the firms' drug portfolios could help cancer patients live for "years rather than months". | |
| But the firm admitted that a merged business might have fewer scientists. | |
| Science Minister David Willetts said he wanted guarantees of more than five years on research and development jobs. | |
| Mr Dolsten and chief executive Ian Read were questioned by the Commons science committee, having appeared before the Commons business committee on Tuesday. | |
| 'Unprecedented" | 'Unprecedented" |
| AstraZeneca, whose boss Pascal Soriot has also been giving evidence, has rejected Pfizer's indicative £63bn bid 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 on closing premises 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 company had made an "unprecedented" five-year commitment to base 20% of its research and development operation in the UK, as well as specific commitments on the future of individual plants in Cambridge and Macclesfield, and would honour them. | |
| "I would like the committee to tell me a [past] commitment that Pfizer has not met," he said. | |
| 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. | 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 at 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 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." | "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." |
| Shareholder value | Shareholder value |
| 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 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". |
| 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. | 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. |
| "A company is a little bit more complicated than putting two pieces of paper together," he said. | |
| 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. | 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. | 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. | 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. |
| Labour has called for a new test to be applied but Mr Willetts said the government was "working within the framework of the law as it stands" and speculation about "further options" was not helpful. | |
| While the final decision was for shareholders, Mr Willetts urged MPs not to be "too pessimistic" and said life sciences firms tended to be receptive to arguments as the UK was the "best place in the world to do science". | |
| "We will want robust commitments that they stick to." |