Vertex Pharmaceuticals' European subsidiary paid nearly no tax despite generating nearly 5.3 billion pounds in sales over five years through 2017, The Guardian reported Wednesday.
The firm declared an operating loss in 2017 after paying the parent drugmaker to manufacture drugs such as Orkambi and Kalydeco while receiving 7 million pounds in tax credits from the UK.
The news comes as NHS has declined to cover Orkambi on the grounds of cost-effectiveness, while Vertex contends it offered "the best price in the world" to the agency while rejecting an offer of a one-time payment of 500 million pounds to access Orkambi and other drugs for five years.
"We have invested heavily in the US and the UK and expect the majority of our income to be recorded in these countries," a Vertex spokesperson commented, adding "we anticipate being a significant taxpayer in both these locations over time."
Vertex previously received criticism after providing a $78.5-million remuneration package to CEO Jeff Leiden in 2017.
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