Medical Design & Manufacturing

Estimated Economic Impacts of the Two Year Moratorium on the Medical Device Excise Tax

We may be seeing an increase in activity from medical device manufacturers as a result of the Consolidated Appropriations Act, 2016 (Pub. L. 114-113) which lifted the Medical Device Excise Tax for two years beginning January 1, 2016. Since January 1, 2013, manufacturers and importers have been paying a 2.3 percent tax on the sale price of taxable medical devices (some exclusions include eyeglasses, contact lenses, hearing-aids, retail items, etc.).

“What most taxpayers don’t realize is, even though the 2.3 percent tax seems like a small number, it is significant to manufacturers,” states John Bolinder, VP marketing & communications at Nelson Laboratories.  “For a mid-size company in the $10 million to $50 million range that sells commodity items in a competitive MedTech market place, the profit margins are only 6 to 10 percent, so the effective tax is closer to 20 to 30 percent since the 2.3 percent tax is taken from top line revenue, not earnings. That is a tremendous erosion of earnings and capital for small and mid-size firms. Many firms had to make significant cuts in spending, R&D and payrolls to pay the tax. Hopefully legislators will realize how much of a burden this tax is to device manufactures and continue to assess alternatives so that MedTech companies can spend these funds on innovation and improving the quality of life.”

It is estimated by the Congressional Research Service that companies paid out $2.4 billion in 2014. What effect will this have on the medical device industry? Time will tell, but many manufacturers have already stated that they are increasing investments back into their companies which will fuel growth in the MedTech sector.

MD&M West 2015: Celebrating 30 Years at the Forefront of Medtech Innovation

– Re-posted from PR Newswire –

SANTA MONICA, Calif., Jan. 12, 2015 /PRNewswire/ — In honor of the 30th anniversary edition of the Medical Design & Manufacturing (MD&M) West exhibition and conference, UBM Canon has announced a blockbuster line-up of content and special show features. As the nation’s largest medtech event, MD&M West 2015 will bring together thousands of global experts in the medical design field to celebrate the brand’s legacy of promoting innovation across the medical device manufacturing community. MD&M West will take place February 10-12, 2015 at the Anaheim Convention Center in Anaheim, CA. For more information and to register, please visit: mdmwest.mddionline.com.

The highlight of the anniversary celebration is the 30-year roundtable at the Center Stage, where veteran industry insiders will debate trends that will rock the medical device industry in 2015 and beyond. Speakers scheduled to attend include:

  • Stuart Herskovitz, President, Qosina
  • Tom Black, Vice President, B. Braun Medical
  • Jeffery Nelson, President and Chief Executive Officer, Nelson Laboratories
  • Brian Nash, Vice President Sales and Marketing, Nusil

Attendees will find a plethora of in-depth and entertaining content for this year’s event such as: a 3D printed drone, former NBA player turned medical device inventor, live product teardowns, guided Innovation Tours of the expo hall, and dedicated Speed Networking sessions right on the show floor. This year will also see the debut of the “Do You Science?” trivia game, where 5 grand prize winners will receive a free Microsoft Surface Tablet, courtesy of Nordson EFD.

In addition to the vast MD&M West exhibition, attendees will also have full access to the entire co-located Anaheim exhibition and conference. Co-located with 7 other advanced manufacturing events in Anaheim, MD&M West brings together thousands of top suppliers from across the nation onto one show floor. Attendees will be able to source the latest design innovations, participate in free networking events, and take advantage of free educational opportunities over three days. Nowhere else will you find the same level of content and resources across industry lines.

Read the complete press release online at www.prnewswire.comFor information about Nelson Laboratories’ MD&M West schedule visit www.nelsonlabs.com.