The Stop Corporate Inversions Act (S3847) would retroactively tax inverted companies as domestic corporations, directly hitting MDT, PRGO, and ALLE with $40M to $1.2B in annual tax increases. Market prices already discount this risk: all three are near 52-week lows. The bill is early-stage but has a companion in the House, indicating legislative momentum. Investors holding these names face binary tax-expense risk with limited upside until the bill's path clarifies.
→ Perrigo would owe U.S. corporate income tax on worldwide earnings, increasing its effective tax rate from sub-10% to 21%
S3847