The Usual Suspects Get a Leg Up
Naturally, the first in line to benefit are the big boys. I’m looking at you, GlaxoSmithKline and AstraZeneca. These British giants have been pouring money into the American market for decades, building labs and sales teams. All the while, every box of life-saving medicine they shipped was slapped with a tax, eating into their profits and making them less competitive against their American rivals.
Suddenly, that ball and chain is gone. For a company like GSK, with its vast portfolio of vaccines and medicines, this could mean a significant boost to the bottom line. The same goes for AstraZeneca, whose cutting edge cancer drugs might now find an even bigger audience in the States. To me, it validates the expensive strategy of planting a flag on both sides of the pond. For investors, it could mean healthier margins and, one hopes, healthier dividends.