As we waited to see whether or not Pfizer would be successful in its takeover of AstraZeneca, the approach has raised several issues for the pharmaceutical sector. While the attraction of the profit to be made from the sale could not be under-estimated, the reputation of Pfizer, renowned for its continual acquisitions and what this would mean for AstraZeneca employees, the UK economy and the UK life science sector as a whole, came under scrutiny. What would become of the centre of excellence created by AstraZeneca? And also importantly, what would this mean for drug discovery and development?
As we have seen with the recent launch of MedCity - the £4 million medical initiative linking London, Oxford and Cambridge – politicians are keen to push the UK’s position in global life science rankings, creating a hub and network that will rival Britain’s financial services sector. This drive to cement growth and development through investment and advancement in the life sciences sector is clear and offers long term economic gain for the UK which has so long relied upon consumption, property and the financial service sector. It highlights the true value that life sciences hold within the economy and why many of those who opposed the takeover have a valid point to want to hold tight to the assets companies such as AstraZeneca create. As Pfizer continued its quest to takeover this flagship of the UK pharmaceutical sector, the concerns of the sector and government became increasingly relevant as the extent to which the industry could be negatively affected, became apparent. Of course, there were those that pushed the benefits of the sale, looking back at AstraZeneca’s floundering R&D department of recent years. Today the company has 19 products that are or will be in late stage trials by next year, showing the potential of the company and the value it holds for the UK pharmaceutical sector, not just in terms of product development but also ensuring security of skilled jobs and manufacturing within the UK.
It will of course, be interesting to see what happens over coming months. There is talk of increased pressure on shareholders going forward as Pfizer makes a return bid an that now is the time for the UK government to intervene and put in place a public interest test for proposed takeovers of this size, similar to that which exists in France. When we consider the implications the takeover may have for the UK life sciences, perhaps we really do need to consider this to ensure the UK retains sector excellence the considerable contribution to the economy that a company such as AstraZeneca possesses.
