New SEC disclosures reveal that ten leading US pharmaceutical and biotech firms saved at least $5bn in federal taxes last year by booking substantial income in low-tax jurisdictions overseas. Eli Lilly paid $6.6bn in Ireland, double its US tax bill, while Merck paid $2.1bn to Switzerland versus $1.6bn in the US for its cancer drug Keytruda. Pfizer paid $1bn to Ireland compared to $2.7bn to the US Treasury.

These figures highlight how multinational companies legally minimize their tax burden by shifting profits to countries like Ireland and Switzerland, despite the US being the largest pharmaceutical market. The new accounting rules, effective for 2025 reports, force companies to disclose tax payments in major jurisdictions, exposing significant rate disparities.