Following are Items that I picked out of yesterdays legislation that may effect US corporate taxpayers beginning in 2018 relative to an investment in Resverlogix

Corporate tax rate: The act replaced the prior-law graduated corporate tax rate, which taxed income over $10 million at 35%, with a flat rate of 21%.(this is huge - a 14% increase in corporate after tax profits - another way of looking at these lower rates is that they would more than mitigate the RVX-208 royalty expense payable to Zenith shareholders) net effect +MV

Orphan Drug Credit: The amount of the Sec. 45C credit for clinical testing expenses for drugs for rare diseases or conditions is reduced to 25% (from the prior 50%)net effect -MV

Net operating losses: The act limits the deduction for net operating losses (NOLs) to 80% of taxable income (determined without regard to the deduction) for losses. Taxpayers are allowed to carry NOLs forward indefinitely. The two-year carryback and special NOL carryback provisions were repealed. (This provision lowers the value of the NOL carryforward to a US corporate buyer, let's say Pfizer, or Hepa USA. At 10/31/17, the Deficit totalled $342MM + R&D cash burn of $3k per  month, let's call it  .21($400MM *.8) = 67.2MM vs. previous value of .35(400MM) = 140MM a net decrease in the value of the nolcf to US corporations of 72.8MM)

IMHO the Tax Cuts and Jobs Act ushers in a great new age of US corporate growth and profitability! Time will tell - 

Best Wishes to all posters on this board for a Merry Christmas and a Healthy, Happy and Prosperous 2018. Special thanks to our hub leaders who keep the dialog pertinent, focused and respectable. I enjoy the dialog and information.

We are almost there - it has been quite a ride - GLTA

Chicagoest