There are almost too many speculations of changes to come in Washington, D.C. Small and big companies are all ears on the ground with expectations of positive and negative impacts that are likely to result from the four to eight years of President Donald Trump.
One such company is Gilead Sciences, Inc. (NASDAQ:GILD), a global leading biotech, which has had its share of ups and downs. Rumor has it that given President Trump’s relationship with China, the drug maker could be set for bigger problems.
A Sneak Peek Into The Negative And Positives That Gilead Should Expect
Trump has an agenda of consenting to Medicare negotiating directly with drug makers in an effort to secure lower prices for their goods and services. The slightest discount on any prescription would have a real negative impact on Gilead noting that the biotech received more than $10 billion from the federal health care program for just five drugs. The said drugs account for four-fifths of the company’s revenue that year. Don’t forget a lot of the company’s materials to make its products are obtained from China.
However, despite all the negative impact that may hit Gilead Sciences, Inc. (NASDAQ:GILD), there is still something worth smiling about. For example, there is the 10% tax rate that would be discounted on one-time repatriation of cash held overseas. At the end of the third quarter, Gilead reported $25.2 billion in cash was parked overseas and of course this amount must have increased to date. The company would make more than $22.5 billion on enactment of President Trump’s proposal, which is such a substantial sum.
The Biggest Winners And The Overall Impact
A new analysis from the Institute on Taxation and Economic Policy (ITEP) reveals that the likes of Apple Inc. (NASDAQ:AAPL) and Oracle Corporation (NYSE:ORCL) seem to be some of the biggest winners of Trump’s presidency and especially if the repatriation proposal is put into place. U.S. firms currently have $2.5 trillion in offshore earnings, which translates to $720 billion in taxes. However, they would only be required to meet $206 billion giving them as saving of $514 billion tax break.
Meanwhile, Gilead Sciences, Inc. (NASDAQ:GILD) was trading at $71.01 a decline of $0.56 or 0.78%.
Note: This article is written by Andy Parker and originally published at Market Exclusive.