FROM: Fox Business
The pharma and biotech industry will send billions of dollars back to the United States as a result of President Donald Trump’s tax overhaul, Alexandria Real Estate (ARE) Chairman Joel Marcus said on Monday.
“In our particular niche, since we are in a very unique niche which has a high barrier to entries in these irreplaceable markets … The pharma and biotech industry will repatriate, thanks to the congressional approval, the president’s tax bill, over $150 billion of cash,” Marcus told Maria Bartiromo on “Mornings with Maria.”
Congress passed the tax bill in December, creating the a sweeping overhaul of the U.S. tax system—the largest in three decades. The legislation aims to create a more attractive environment for business by shifting to a territorial system and reducing the federal tax rate from 35% to 21%.
Marcus expects the cash surplus will go toward creating more jobs, commercial real estate expansion and continued mergers and acquisition (M&A) growth in the sector.
“You’ll see more M&A and a real continued growth,” he said, while pointing out that only 5% of the 10,000 known diseases have been medically addressed. “So that’s why we were comfortable in giving the street a five-year outlook on our performance.”
With a market cap of $16.1 billion and an asset base in North America of 28.6 million square feet, Marcus said the company expects to double its revenues between 2018 and 2022.