Donald Trump's Win Could Spur More Pharma Deals
U.S. President-elect Donald Trump's plan to incentivize U.S. companies to repatriate their swelling overseas cash piles could spur a new wave of dealmaking in a pharmaceutical industry seeking to buy its way into growth.
For years, big U.S. drugmakers have turned to acquisitions of foreign companies to put their overseas cash to work, rather than bring it home at a 35-percent tax rate. Trump has proposed allowing repatriation of this cash at a 10-percent tax rate, hoping some of it will be spent on hiring and investing in their businesses.
For years, big U.S. drugmakers have turned to acquisitions of foreign companies to put their overseas cash to work, rather than bring it home at a 35-percent tax rate. Trump has proposed allowing repatriation of this cash at a 10-percent tax rate, hoping some of it will be spent on hiring and investing in their businesses.