Johnson & Johnson (JNJ) CEO Alex Gorsky has hinted to investors how potential tax reform might impact the company’s strategic planning in 2017 and beyond, and offered his thoughts about the drug pricing controversy that weighs on the industry.
The likelihood that offshore profits will be repatriated to the U.S. has increased in light of the Republican sweep, and J&J is viewed as being among the biggest potential beneficiaries. Such legislation would essentially free up cash for drugmakers like J&J to spend on acquisitions of other U.S.-based players, if they don’t use it for R&D, capital investment or stock repurchases or dividend payments.
