Nephron Pharmaceuticals delivers on promises after tax reform
Nephron Pharmaceuticals Corporation, a manufacturer based in West Columbia, South Carolina, has been instrumental in helping US hospitals during the pandemic. The company manufactures inhalation solutions and suspension products, as well as sterile pre-filled syringes, vials, IV vials and IV bags. Meanwhile, Nephron also launched a COVID-19 diagnostic lab and vaccination center last year and recently announced plans for a new US plant that will produce medical grade nitrile gloves.
It was thanks to the Tax Cuts and Jobs Act of 2017 that Nephron was able to continue to invest in its workforce and facilities. Nephron President, CEO and Owner Lou Kennedy recently spoke to us about the expansion of the business and the benefits of the tax reform law provisions.
An early start: Nephron didn’t wait to start sharing the benefits with its employees. Days after the tax reform was passed, the company announced that employees would receive a 5% raise.
An expanded workforce: The tax reform also helped the company grow over time, growing from its pre-reform size to 485 employees.
- Today, the company has nearly 1,200 full-time employees and nearly 800 other part-time employees, including educators, interns and apprentices, a massive expansion that shows no signs of stopping.
- In fact, Nephron expects to have 400-500 vacancies in the next 12 months alone.
In addition, the company is young and diverse: around 53% of the workforce are women, over 36% are people of color, and the average age of employees is around 35.
Provide good jobs: The company now offers a starting wage of around $ 17 an hour. During this time, he also increased his long-term incentives and bolstered his 401 (k) plan.
Growth operations: In addition to expanding its workforce, Nephron is using the benefits of tax reform to invest in its facilities and expand its footprint.
- The company is in the midst of five multi-million dollar projects, including one worth $ 215 million that Nephron says was made possible by tax reform. This project will create 380 new full-time jobs in the surrounding region by 2024 and add new offices, warehouses and production spaces as well as a vaccine production facility.
How tax reform helped: Nephron is organized as an intermediary entity, which allowed the company to benefit from the lower top tax rate (37%) offered by the tax reform. It also benefited from the 20% pass-through deduction and a full expense write-off provision that allows for immediate deduction of equipment purchases.
- The tax code’s research and development incentives, including full support for R&D, have also been extremely important to Nephron, helping it develop the therapies that stop COVID-19 in its tracks.
The last word: “Since the passage of the Tax Cuts and Jobs Act, we have reinvested money in our businesses and our workers,” Kennedy said. “We would certainly have to pump the brakes if the tax reform were to be reversed. We hope Congress and the administration will leave tax reform in place to incentivize domestic manufacturing.