Medical Device Excise Tax to Have a Significant Impact on Industry Profits in the New Year
December 07 2012 - 8:20AM
Marketwired
The Medical Devices Industry has shown admirable gains in 2012, but
a medical device excise tax set to kick in next year will have a
major impact on companies' profits going forward. The iShares Dow
Jones US Medical Devices ETF (IHI) has gained over 15 percent
year-to-date. The Paragon Report examines investing opportunities
in the Medical Equipment and Supplies Industry and provides equity
research on MAKO Surgical Corp. (NASDAQ: MAKO) and Stryker Corp.
(NYSE: SYK).
Access to the full company reports can be found at:
www.ParagonReport.com/MAKO
www.ParagonReport.com/SYK
The medical device excise tax, which was designed to support the
Affordable Care Act, places a 2.3 percent levy on all sales of
medical devices regardless if a company makes a profit or not.
Despite not taking effect until January 1, 2013, many companies
have already announced job cuts and delayed expansion plans in
preparation for the tax.
"America already has the highest corporate tax rates in the
world," AdvaMed senior executive vice president David Nexon told
reporters today. "To load this additional burden on an industry
which is so important to our economy and which is facing a strong
international competitive pressure makes no sense at all; it flies
in the face of everything tax reform is supposed to achieve."
Paragon Report releases regular market updates on the Medical
Equipment and Supplies Industry so investors can stay ahead of the
crowd and make the best investment decisions to maximize their
returns. Take a few minutes to register with us free at
www.ParagonReport.com and get exclusive access to our numerous
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MAKO Surgical Corp. is a medical device company that markets its
RIO Robotic-Arm Interactive Orthopedic system, joint specific
applications for the knee and hip and proprietary RESTORIS implants
for orthopedic procedures called MAKOplasty. The company reported
revenues of $29.2 million in the third quarter, a 46 percent
increase when compared to the year-ago quarter.
Stryker offers a diverse array of innovative medical
technologies, including reconstructive, medical and surgical, and
neurotechnology and spine products to help people lead more active
and more satisfying lives. The company has increased their
quarterly dividend by 25 percent to $0.265 per share.
The Paragon Report has not been compensated by any of the
above-mentioned publicly traded companies. Paragon Report is
compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
disclaimer at: http://www.paragonreport.com/disclaimer
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