Amid ongoing debate over the effect of the recent tax law, one lawmaker complains that shareholders in the nation’s 10 largest drug makers will reap a “windfall,” but the average American will not share in the bounty because none of these companies is using tax cuts to lower prescription medicine prices.
In a new report, Sen. Cory Booker (D-N.J.) noted that several of the companies have announced more than $45 billion in stock buybacks, but overall, there has been only “limited mention” of investments in ways that could benefit patients and workers, such as increases in R&D and capital investment for building new facilities and creating jobs.
“This early snapshot is discouraging. Given the windfall that the pharmaceutical companies are anticipating as a result of the Tax Cuts and Jobs Act, there is no excuse but to act to lower the cost of prescription medications. However, based on this analysis, there is no evidence that this is being done,” Booker stated in a preface to the report.