Pfizer bosses to face MPs over AZ deal
THE contentious £60bn potential takeover of AstraZeneca by US rival Pfizer enters a new phase this week as Ian Read, the CEO of Pfizer, appears before the House of Commons.
Mr Read, and Pzifer’s UK head, Jonathan Emms, will appear before the business select committee today, which will also hear from business secretary Vince Cable and AstraZeneca’s chief executive Pascal Soirot.
There is considerable concern among some politicians, unions and scientists over the impact of the deal – which if it happens would be the biggest ever takeover of a UK-business.
Opponents fear that cost-cutting to achieve synergies post-deal could hit thousands of highly skilled jobs and undermine Britain’s long-term science base.
It is thought that Mr Read will be asked to guarantee British jobs for 10 years. Labour MP Andrew Miller, who chairs the science and technology select committee that will also quiz Read this week, said a Pfizer promise to keep 20% of the research and development workforce in Britain for five years was not enough.
“Five years is no time in drug development. A molecule that’s discovered today will not be an active ingredient in a medicine that you or I take for a minimum of 10 years. Given the time frames of development in pharmaceuticals, we need very, very long-term commitments.”
While there is concern over the deal, CBI, the business lobby group says that the UK should be wary of adopting a protectionist stance. While it is correct for the government to scrutinise Pfizer’s proposals and seek guarantees, direct intervention would not be helpful, the CBI said.
AstraZeneca employs about 2,600 R&D scientists in Britain and there are concerns that Pfizer’s main motivation is to move its tax domicile to Britain, where the corporation tax rate is falling to 20% in 2015 compared with a US rate of up to 40%.
