Pfizer chief's prescription for a fast deal

He knows that Pfizer’s track record will reassure no one. Since its last major acquisition – of Wyeth in 2009 – it has slashed 51,000 jobs. Its research and development budget also shrank following that deal, and has contracted yearly since, despite taking on more pipeline projects.

Mr Read has trodden on sensitive political ground. Pfizer helped to trigger the Government’s rethink on life sciences when it decided to downsize dramatically its research and development operation in Sandwich in 2011. Since then, the Government has been at pains to prove that Britain is a prime destination for scientific research through a string of tax incentives.

Mr Read’s letter was a canny move, but he still has a job on his hands to convince politicians his intentions are honourable. The public statement was so heavily caveated that politicians are scratching their heads to figure out whether it amounts to a binding agreement.

Still, he has probably done enough to show he wants to play nicely. The Government may not have powers to block a deal, but it could make life difficult for Pfizer’s bosses if it felt the UK’s interests were being overlooked.

Mr Read wants a deal done quickly and cleanly, not least as the US is pushing through rules to make it harder for its companies to redomicile their tax bases through foreign takeovers. It would also provide a home for Pfizer’s enormous overseas cash pile, which would incur a hefty tax bill on repatriation. To boot, AstraZeneca has an attractive pipeline of innovative cancer drugs.

This is unlikely to be the last we hear from Mr Read on his commitment to Britain’s prized science base. Pfizer has too much to gain from this deal to risk letting political opposition slow it down.

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