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Biotech Eyes Tax Revamp as Next Chance to Shake Its Recent Woes

  • Amgen, Gilead among companies with most cash to repatriate
  • Tax reform policies seen driving acquisition decisions
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Jim Paulsen Sees Tax Bill Ebb and Flow in Markets

Biotechnology investors who saw their portfolios stumble after a late-summer bull run may refocus on a key reason that the group took off: the U.S. tax overhaul and repatriation.

As Republicans move closer to passing the Senate’s tax bill, investors in biotech will remain focused on the possibility of a lower tax rate for repatriation of funds. The prospect of large companies, including Amgen Inc. and Gilead Sciences Inc., bringing cash back to the U.S. may spur some highly anticipated deals in a space that has been tracking this year to the lowest volume of transactions since 2013, according to data compiled by Bloomberg.