Why Pfizer's numbers don't add up to 20% of anything
Jim Armitage is the City editor of The Independent and London Evening Standard group of newspapers. He has been a reporter and editor for more than 20 years and was recently shortlisted for the Press Gazette financial journalist of the year and The Society of Editors financial journalist of the year awards. He contributes news, investigative reports and comment to the Independent titles plus a daily column in the Evening Standard.
Thursday 15 May 2014
Outlook Mike Ingram, a market strategist at the City brokers BGC Partners, confesses he's no expert in pharmaceuticals. But he does know a thing or two about grinding down financial numbers. Which is why when he says Pfizer isn't talking straight when it comes to its planned job cuts for AstraZeneca, we should take heed.
I'll keep his workings-out to a minimum, but essentially, he calculates that to justify Pfizer's likely next bid price of £55 per Astra share – a $37bn premium on Astra's original stock market value – Pfizer must cut Astra's R&D spend by a third. That's even if it manages to save $1.2bn of US taxes a year by using London as its tax haven base. Mr Ingram actually thinks it will have to be well over a third (which represents 3,000 scientists' jobs), because he uses generous assumptions about Pfizer's growth potential.
Pfizer may stick to its supposedly legally binding pledge of retaining 20 per cent of global R&D jobs in the UK, but, if Mr Ingram is right, we should ask the question: 20 per cent of what?
- 1 Student jailed for hacking University of Birmingham computers to improve his grades
- 2 Smartphones are making children borderline autistic, says psychiatrist
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 The most powerful passports in the world
Student jailed for hacking University of Birmingham computers to improve his grades
Smartphones are making children borderline autistic, says psychiatrist
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Royal baby: Live updates as the wait continues for Duchess of Cambridge's second child
Hermann Goering's daughter fails to reclaim items looted by Nazi deputy during WWII
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...