12th May 2014 14:01
(An item published at 1221 GMT misstated the day of the evidence hearing. The correction version follows.)
LONDON (Alliance News) - US drugmaker Pfizer Inc continued its campaign to buy FTSE 100 drugmaker AstraZeneca PLC Monday, submitting a statement to the UK House of Commons.
Pfizer's Chief Executive Ian Read and AstraZeneca's Chief Executive Pascal Soriot will present evidence to the House Business Committee on Wednesday about the proposed takeover.
In a written statement Monday, Pfizer said that it believes a combination of the two businesses would "unquestionably create a UK-based scientific powerhouse that would deliver great benefits to the United Kingdom and to patients and science globally."
The company published a 23-point memorandum, focusing on the potential benefits of a merger. Amongst the points highlighted was Pfizer's commitments to investing in the UK, which has been a source of concern for many UK politicians and commentators.
Pfizer confirmed plans to re-domicile the combined business in the UK, establishing 20% of the combined its research and development workforce in the UK, and complete AstraZeneca's R&D centre in Cambridge. It also said it would retain "substantial" manufacturing facilities at Macclesfield.
It will invite "at least two" AstraZeneca board members to the combined company's board and will hold board meetings for the new company in the UK.
"Though we had no obligation to make these commitments we were willing to do so...because we support the opportunity to strengthen the UK life sciences industry," Pfizer said in its statement.
Pfizer said that the commitments it made were included with its proposed offer to ensure that they would be "binding as a matter of English law" and reiterated that its commitments in its letter to Prime Minister David Cameron "should be given full weight". In the letter to Cameron, Pfizer said it would keep its commitments for a minimum of five years.
Read has also detailed the benefits of the proposed takeover in a series of videos on Pfizer's websites, saying it believes it would be a "win-win" for society and shareholders.
Last Friday, British medical research foundation the Wellcome Trust said in a letter to Chancellor of the Exchequer George Osborne that it had "major concerns" over the potential merger.
The trust noted that it had been encouraged by Pfizer's pledges, but said it was critical that the UK government ensured the commitments were upheld as Pfizer "has not always honoured similar undertakings made following past acquisitions."
AstraZeneca rejected Pfizer's second approach earlier this month, an offer of GBP50 per share which would value AstraZeneca at GBP63 billion, saying it significantly undervalued its business. The company has appealed to shareholders not to take action, reiterating last Tuesday that it expects its revenue to return to 2013 levels in 2017, and expects revenues to more than double over the five years after that.
Shares in AstraZeneca were trading up 0.4% at 4,617.21 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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