[Ip-health] ATF Report: Gilead dodged $10 billion in U.S. taxes by offshoring profits
pmaybarduk at citizen.org
Wed Jul 13 09:49:35 PDT 2016
This just out from Americans for Tax Fairness: http://www.americansfortaxfairness.org/new-report-taxpayer-supported-gilead-sciences-is-price-gouging-the-public-then-dodging-taxes-on-the-huge-profits/
A new investigative report finds that in the last two years Gilead Sciences has raked in billions in profits from exorbitantly priced hepatitis C medications that were developed with taxpayer dollars, and then shifted those profits to offshore tax havens where it dodges U.S. taxes.
Full report: http://www.americansfortaxfairness.org/files/ATF-Gilead-Report-Finalv3-for-Web.pdf
"Gilead is making a fortune selling essential drugs to the very government and taxpayers that helped pay to develop them, and then dodging taxes on the resulting profits," said Americans for Tax Fairness Executive Director Frank Clemente. "Congress should stop this assault on the American people's health and pocketbooks by curbing the company's flagrant drug-price gouging and tax dodging."
U.S. Rep. Lloyd Doggett (D-TX), a senior member of the House of Representatives' tax-writing committee and chair of the House Prescription Drug Pricing Caucus, said, "Gilead excels at tax dodging and price gouging. While a chief exporter of drug patents and profits to Ireland, it refuses to charge Americans the much lower drug prices of Ireland. Instead of innovation, it has spent more on stock buybacks for executives and shareholders than on research and development. Gilead's formula for success: prices up, profits up, tax avoidance up. We don't need research to know this about drug effectiveness: an unaffordable drug is always 100% ineffective."
California-based Gilead is the sixth most valuable pharmaceutical corporation in the world, with a market value of $146 billion last year. Its enormous profits come primarily from two life-saving Hepatitis C (HCV) medications. WhenGilead's first HCV drug launched in 2013 a full treatment cost $84,000, and a follow-on treatment cost nearly $95,000. And in late June the FDA approved a new version that will debut at $75,000. The cost of manufacturing the original drug was under $1,400.
The report found Gilead's sales and profits have soared since the drugs launched, while its tax rate has plummeted. Gilead's worldwide revenues recently tripled-from $11.2 billion in 2013 to $32.6 billion in 2015. Corporate pre-tax profits soared even more: rising from $4.2 billion to $21.7 billion from 2013 to 2015, a five-fold increase. But, over the same period Gilead's worldwide effective tax rate plummeted by 40%-dropping from 27.3% in 2013 to 16.4% in 2015.
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