Why Pfizer's numbers don't add up to 20% of anything
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 What happens to your body when you give up sugar?
- 2 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 4 Penis size: Study revealing 'what's normal' sends international media into meltdown
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Ayesha Ali death: Mother and her girlfriend found guilty of manslaughter of eight-year-old
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, claims photographer
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...