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Pfizer chief defends track record after criticism from MPs Pfizer chief defends track record after criticism from MPs
(35 minutes later)
Pfizer's chief executive has fended off tough criticism from MPs, saying the drugs giant has acted with "integrity" and that complaints are based on a misunderstanding of the facts.Pfizer's chief executive has fended off tough criticism from MPs, saying the drugs giant has acted with "integrity" and that complaints are based on a misunderstanding of the facts.
Ian Read was being questioned over the US firm's proposed £63bn-plus takeover of the UK's AstraZeneca. Ian Read was being questioned over the US firm's proposed £63bn takeover of the UK's AstraZeneca.
The Business Committee is taking evidence and will hear later from Business Secretary Vince Cable.The Business Committee is taking evidence and will hear later from Business Secretary Vince Cable.
Politicians and scientists have warned a takeover could damage UK interests.Politicians and scientists have warned a takeover could damage UK interests.
'Misunderstanding'
Mr Read rejected criticism that Pfizer had a poor track record on maintaining job and investments, both in the UK and elsewhere.Mr Read rejected criticism that Pfizer had a poor track record on maintaining job and investments, both in the UK and elsewhere.
Adrian Bailey, chairman of the committee, asked Mr Read to respond to claims that Pfizer was like a "praying mantis" and a "shark that needs feeding".Adrian Bailey, chairman of the committee, asked Mr Read to respond to claims that Pfizer was like a "praying mantis" and a "shark that needs feeding".
Mr Read said he was "very proud" of his 35 years at the firm, describing it as a "company of high integrity focused on patients and delivering drugs to patients".Mr Read said he was "very proud" of his 35 years at the firm, describing it as a "company of high integrity focused on patients and delivering drugs to patients".
He said he was not concerned about an attack on the company by Swedish Prime Minister Fredrik Reinfeldt, who referred to "negative experiences" after Pfizer took over Pharmacia.He said he was not concerned about an attack on the company by Swedish Prime Minister Fredrik Reinfeldt, who referred to "negative experiences" after Pfizer took over Pharmacia.
Mr Read said the comments were based on a "misunderstanding of the facts" over strategy and a promise to build a factory only if a product got regulatory approval. "Having set the facts right, I'm not concerned" by the comments, he said.Mr Read said the comments were based on a "misunderstanding of the facts" over strategy and a promise to build a factory only if a product got regulatory approval. "Having set the facts right, I'm not concerned" by the comments, he said.
He added, however, that a merged Pfizer-Astra would mean research expenditure would be lower than that of the two separate companies. He added that a merged Pfizer-Astra would mean research expenditure would be lower than that of the two separate companies.
Mr Read said that one of the drivers of his proposed deal was to increase efficiency in order to keep both firms competitive in an increasingly tough marketplace.Mr Read said that one of the drivers of his proposed deal was to increase efficiency in order to keep both firms competitive in an increasingly tough marketplace.
Earlier at the hearing, union leaders said that a takeover should be blocked because Pfizer's promise to protect UK jobs and investment could not be guaranteed. Although he could give no figure on the number of UK jobs that the merged firm would employ, he said it would be substantial. "I have not seen AstraZeneca's books. Some things are sight-unseen. But the numbers will be substantial... Pfizer is a company that keeps its promises."
Tony Burke, assistant general secretary of Unite, said he had met shop stewards and they were against a takeover. "They are concerned that not only would they face job losses, but that skills and scientific expertise would be dissipated," Mr Burke said. Committee member Mike Crockart asked why the UK Government should support a Pfizer bid, when "you have a reputation of being ruthless cost-cutters, and that seems to be borne out by what you have said today".
Allan Black, national officer at the GMB, said Pfizer's track record on maintaining job after takeovers was not good. "I tend to treat employers on what they do, rather than what they say," he said. Mr Read replied that the takeover was "an opportunity to domicile the largest pharmaceutical company in the world, to bring the strength of the combined portfolios and to bring our financial strength into the UK and globally.
"I think it will strengthen the scientific base in the UK, a company our size making these sorts of commitments."
'Cause for concern'
Earlier at the hearing, union leaders said that a takeover should be blocked.
Tony Burke, assistant general secretary of Unite, said AstraZeneca workers were concerned about Pfizer's record on jobs, telling MPs there had been 65,000 job cuts made by Pfizer since 2005.
"They are concerned that not only would they face job losses, but that skills and scientific expertise would be dissipated," Mr Burke said.
GMB national officer Allan Black said Pfizer's five-year guarantee on jobs and investment was worthless. "You don't really buy a second-hand car if the guy says 'I'm giving you a guarantee but, hey, if things change the guarantees are null and void'... I tend to treat employers on what they do, rather than what they say," he said.
He said the commitments offered by Pfizer "fly in the face of what they have done when they have acquired companies in the past".
"Their track record is the thing that gives me most cause for concern rather than, frankly, what I regard as fairly flimsy commitments.
"We would like the Secretary of State to contemplate intervening using the powers that he has or could very quickly acquire to stop the thing going ahead."
'Not long enough''Not long enough'
Before the committee hearing, the President of the Royal Society, Prof Sir Paul Nurse, told the BBC that Pfizer's five-year commitment to maintain research and jobs was "vague" and insufficient.Before the committee hearing, the President of the Royal Society, Prof Sir Paul Nurse, told the BBC that Pfizer's five-year commitment to maintain research and jobs was "vague" and insufficient.
Sir Paul, who has submitted written evidence to the committee, said: "Research is a long-term business. I have researched for 40 years of my life. I know that five years is not long enough term to be committed to.Sir Paul, who has submitted written evidence to the committee, said: "Research is a long-term business. I have researched for 40 years of my life. I know that five years is not long enough term to be committed to.
"They need to look at a 10-year horizon at least if they are actually going to make an important impact on this area and produce the medicines that will help people.""They need to look at a 10-year horizon at least if they are actually going to make an important impact on this area and produce the medicines that will help people."
Pfizer chief defends track record
'Strong rationale'
On Tuesday, Pfizer turned up the pressure on AstraZeneca by outlining its takeover proposals to Astra's shareholders.On Tuesday, Pfizer turned up the pressure on AstraZeneca by outlining its takeover proposals to Astra's shareholders.
Pfizer laid out the "strong strategic rationale" of the £63bn takeover plan.Pfizer laid out the "strong strategic rationale" of the £63bn takeover plan.
Astra has so far proved resistant to Pfizer's overtures, rejecting its latest offer as "inadequate".Astra has so far proved resistant to Pfizer's overtures, rejecting its latest offer as "inadequate".
Any deal would be the largest foreign takeover of a UK firm to date, but the proposal has revived memories of when US food giant Kraft abandoned jobs pledges after it bought Cadbury.Any deal would be the largest foreign takeover of a UK firm to date, but the proposal has revived memories of when US food giant Kraft abandoned jobs pledges after it bought Cadbury.