Pfizer-Allergan: good for America
Pfizer applies science and its global resources to bring therapies to people that extend and significantly improve their lives. Pfizer’s proposed combination with Allergan creates a global R&D leader and will enable us to pursue cures and treatments for conditions ranging from Alzheimer’s and Parkinson’s disease to cancer and rare genetic disorders.
The combination will allow us to invest a combined $9 billion in research and development, the bulk of it here in the U.S., making us one of the largest single R&D investors in America and expanding our ability to invest in the U.S.
There is a myth that we are skirting U.S. taxes. Not true. All companies must pay taxes on U.S. income regardless of where they are incorporated. The proposed combination will not affect the tax rate Pfizer pays on U.S.-based income, reflecting our two companies’ earnings and 30 R&D and manufacturing locations in the U.S. It also allows us to maintain a strong base of 40,000 highskill, high-wage jobs in the U.S.
The U.S. is the world’s leader in science with the best academic centers and renowned scientists. All of our foreign competitors that do business in the U.S. enjoy access to our resources. They also benefit from the country’s pricing system and access to our infrastructure. The U.S. has the highest statutory tax rate at 35%, and is one of a few countries that tax overseas earnings when they are brought home to invest.
The unfortunate irony is that an inversion makes it easier for an American company to invest in the U.S. and less likely that it will face competitive tax disadvantages — or be acquired by a foreign competitor.
We appreciate that the issues raised by U.S. tax reform are difficult. And we know that many good minds are working to reform the system.
While that process unfolds, we will remain focused on developing innovative medicines that significantly improve the lives of patients.
We want patients to have access to medicines and have expanded our assistance program to four times the federal poverty level so that more patients in need are eligible to receive their Pfizer medicines for free.
The Pfizer-Allergan combination is good for America.