Skip to Main Content
Contribute Try STAT+ Today

Three congressional lawmakers are examining the extent to which pharmaceutical wholesalers and a leading drug maker may use a provision in the Covid-19 relief bill enacted last year to boost tax breaks for legal costs related to their roles in the opioid crisis.

The inquiry was sparked by Cardinal Health (CAH), which recently disclosed plans to collect a $974 million refund as a net operating loss carryback. This accounting exercise allows a company to claim an immediate refund of taxes previously paid by reducing taxes owed in the past. This break was included in the CARES Act bailout package last year as a way to help companies struggling during the pandemic.

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

GET STARTED

What is it?

STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • STAT+ Conversations
  • Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.