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Pharmaceutical industry

UK Government Adviser Warns Against Hostile Takeover of Zeneca

Strategic Insights

— 1 min read

Tony Blair's senior science adviser has warned the Government to defend the pharmaceutical company Zeneca if it becomes the target of a hostile foreign bid. This comes as Swedish rival Astra has expressed interest in acquiring the company. The adviser, who is the chief executive of a healthcare group, believes a takeover would have a devastating impact on jobs and the UK science base. Zeneca has an enviable portfolio of drugs and treatments in development, including heart-attack drug Zestril and schizophrenia treatment Seroquel.

Key Takeaways:

  • Tony Blair's senior science adviser has urged the Government to defend Zeneca against a hostile takeover.
  • Zeneca is a major contributor to the UK's exports, with Pounds 1.9 billion in sales last year, more than Glaxo and SmithKline combined.
  • The company spent Pounds 650 million on research last year, with 2,600 UK-based pharmaceutical scientists and an additional 1,200 scientists in agrochemicals and specialities.
  • The UK Government has shown reluctance to interfere in cross-border deals, but has intervened in cases where UK interests are at stake, such as the proposed merger of SmithKline Beecham and American Home Products.
  • A hostile takeover by a European Union country, such as Astra, may be difficult to block, but an approach from the United States or a Swiss drugs group could potentially be scuppered.
  • Zeneca's independence is crucial for the UK's reputation as a global centre of excellence and to maintain the jobs and expertise it has created.

Statistics:

  • Zeneca spent Pounds 650 million on research last year.
  • Two-thirds of the company's 3,800 pharmaceutical scientists are UK-based.
  • Another 1,200 British scientists work in agrochemicals and specialities.
  • Zeneca has Pounds 1.9 billion in exports, more than Glaxo and SmithKline combined.
  • The company's sales were dwarfed by those of Glaxo Wellcome and SmithKline Beecham, but its exports were significantly higher.

Sources:

  • "Government urged to defend Zeneca from rival bid" by Julia Finch, The Financial Times (date not specified)
  • "Zeneca spends Pounds 650 million on research" (no publication date specified)

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