Pfizer Tries to Dodge $35 Billion Tax Bill
I heard someone mention recently that pharma giant Pfizer was leaving for Ireland, but I didn’t understand why until now. It seems they have taken a cue from Monsanto’s play book(they are known for pulling all kinds of shenanigans in court) and will -conveniently- be able to avoid around $35 billion in taxes, in the move. From an article at Street Insider, “…their boards of directors have unanimously approved, and the companies have entered into, a definitive merger agreement under which Pfizer, a global innovative biopharmaceutical company, will combine with Allergan, a global pharmaceutical company and a leader in a new industry model – Growth Pharma.”
With US earnings beyond $49 BILLION and a research and development budget of $7.1 billion, Pfizer has become one of the world’s leading research based pharmaceutical companies and yet, they are still trying to avoid paying their tax bills. All this from a company who, in recent months, raised their monthly price for a breast cancer treatment drug to $9,850, “we went to the right point where patients get the maximum access, payers will be OK and Pfizer will get the [returns] for a breakthrough product,” said Pfizer’s Albert Bourla, MD”, reports Pharmacist.com and one who has stashed its cash offshore even though they’ve been asked(by the Treasury Department) to pay up.
As if all that isn’t bad enough, Pfizer actually wants to stay in New York, and claim it is based in another country; this would allow them legal protections for their drug patents and $1 billion a year from Medicare and Medicaid, all without having to pay the taxes the rest of us have to. Perfect. I know I shouldn’t be surprised but HOW DOES THIS HAPPEN?
As you might imagine, a petition to force Obama to keep Pfizer’s tax money here in the US, has been started and 100,000 people have already signed it. To sign the petition, click here.