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Pfizer boss braced for second day of grilling by MPs Pfizer: AstraZeneca deal to create 'science power house'
(about 9 hours later)
The chief executive of US drugs giant Pfizer will be back in front of MPs on Wednesday facing fresh questions from the Commons Science Committee. Pfizer bosses have told MPs their proposed takeover of British firm AstraZeneca could lead to a "much better outcome for patients".
On Tuesday, Ian Read answered searching questions from the Business Committee. 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".
The MPs want assurances that a takeover of AstraZeneca would not be against UK interests. 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 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.
'Unprecedented"
AstraZeneca boss Pascal Soriot will give evidence later on Wednesday, as will science minister David Willetts.
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 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.
The chairman of the Commons Science Committee, Andrew Miller MP, says he has been unimpressed so far by Pfizer's assurances over jobs and investment. 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"
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.
"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.
"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."
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.
"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."
PricePrice
Pascal Soriot, chief executive of AstraZeneca, has warned that new drug development could be hit if it were taken over by Pfizer. Pascal Soriot, chief executive of AstraZeneca, told MPs on Tuesday that new drug development could be hit if it were taken over by Pfizer.
Mr Soriot told MPs that a takeover would create huge disruption and distraction as scientists worried about their futures rather than development. 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".
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" despite telling MPs on Tuesday that it would put lives at risk because drugs would be developed less quickly.
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."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."
"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.""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."
'Tricky'
Tuesday's Business Committee hearing on the proposed takeover took place amid worries about the damage it could do to UK interests.
But Business Secretary Vince Cable told the Committee that blocking a bid could be "tricky".
Pfizer's Ian Read told the MPs his company was not a ruthless cost-cutter, and said the drugmaker acted with "integrity".
He repeated assurances that Pfizer would protect jobs and investment, but admitted that a merger would mean a reduction in the combined companies' spending on research and development.
Mr Soriot told the Business Committee that the uncertainty created by a takeover could undermine some of AstraZeneca's work.
"Any distractions on work we are doing now could run the risk of delaying our drugs pipeline.
"What will we tell the person whose father died from lung cancer because one of our medicines was delayed because our companies were involved in saving taxes or saving costs?"
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".