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Cross-border tax benefits may be impacted by international tax reform, pharmaceutical industry overseas layout faces reassessment
Deep Dive

Cross-border tax benefits may be impacted by international tax reform, pharmaceutical industry overseas layout faces reassessment

The U.S. 2017 tax reform enabled large pharmaceutical companies to significantly reduce taxes through overseas patent arrangements, but the global minimum corporate tax rate (Pillar Two) promoted by the Organisation for Economic Co-operation and Development is about to take effect in some countries, potentially weakening the advantages of the current tax system and prompting pharmaceutical companies to reconsider R&D bases and intellectual property locations. The U.S. Congress has yet to reach consensus on relevant rules; if implementation lags, the Treasury could lose $39 billion over five years.

New U.S. Antitrust Draft Rules May Cast a Shadow over Healthcare M&A Deals
Deep Dive

New U.S. Antitrust Draft Rules May Cast a Shadow over Healthcare M&A Deals

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) jointly released draft revisions to merger guidelines aimed at strengthening oversight of consolidation in the healthcare sector. The new guidelines incorporate review elements targeting vertical mergers, cross-market transactions, and serial private equity acquisitions, which could significantly increase the success rate of merger challenges and exert a chilling effect on overall M&A activity. Experts note that while the guidelines are non-binding, they provide an important roadmap for regulatory decisions and judicial rulings.