In the wake of changes to the federal tax code, one lawmaker wants to know why so many drug makers are sharing their windfalls with stockholders and not lowering prices.
The new tax law, you may recall, slashed the corporate tax rate and made it easier for companies to repatriate overseas cash, making dividends and share buybacks quick and appealing options. And in fact, nine drug makers are spending a combined $50 billion on new share buyback programs, all of which were announced during or after passage of the tax bill, according to a recent tally by Axios.
And so, Sen. Tina Smith (D-Minn.) wrote to a handful of drug makers asking whether they announced changes to stock buybacks or dividends; awarded bonuses or made other changes to executive and board compensation; changed the wholesale prices for any of their medicines; or increased research and development for new prescription drugs.
This article is exclusive to STAT+ subscribers
Unlock this article — plus in-depth analysis, newsletters, premium events, and news alerts.
Already have an account? Log in
About the Author Reprints
To submit a correction request, please visit our Contact Us page.
