After the tax bill went into effect nearly a year ago, the pharmaceutical industry was predicted to have many more funds at its disposal, since huge amounts of offshore cash could be repatriated. But what have drug makers done with the money? Mostly, the cash has been used for share repurchases, debt reduction, and some acquisitions, according to a report from Moody’s Investor Service.

To be specific, the 10 largest drug makers had cash holdings — cash and fixed-income investments — of $155 billion at the end of the third quarter, down from $193 billion at the end of 2017. And much of the cash has been spent on returning money to stockholders, although this was not a surprise, according to Moody’s analyst Michael Levesque.

Unlock this article by subscribing to STAT Plus and enjoy your first 30 days free!

GET STARTED

What is it?

STAT Plus is a premium subscription that delivers daily market-moving biopharma coverage and in-depth science reporting from a team with decades of industry experience.

What's included?

  • Authoritative biopharma coverage and analysis, interviews with industry pioneers, policy analysis, and first looks at cutting edge laboratories and early stage research
  • Subscriber-only networking events and panel discussions across the country
  • Monthly subscriber-only live chats with our reporters and experts in the field
  • Discounted tickets to industry events and early-bird access to industry reports

Leave a Comment

Please enter your name.
Please enter a comment.

Sign up for our Daily Recap newsletter

A roundup of STAT’s top stories of the day in science and medicine

Privacy Policy