MITA: Slow investment in medical devices requires tax repeal
The Medical Imaging & Technology Alliance (MITA), in response to a report showing a continued decline in venture capital investment in medical devices, has reaffirmed its call for the repeal of the medical device excise tax scheduled to go into effect this January.
According to the report, from PwC and the National Venture Capital Association, medical device investing declined for the third consecutive quarter in Q3 of 2012, falling 37 percent in dollars and 27 percent in deal volume. Overall, there was $434 million invested in 65 companies, which represents the lowest level of investment since 2004.
Tracy T. Lifteroff, global managing partner of the venture capital practice at PwC U.S., said in an announcement that "regulatory uncertainty" contributed to the low level of investment in life sciences.
"This report is yet another indication of the economic impact of regulatory uncertainties--such as those created by the impending medical device tax--on device manufacturers and their ability to create well-paying jobs in the United States," Gail Rodriguez, Executive Director of MITA, said in a statement. She added that the increased tax, along with regulatory uncertainty, will "restrict the development of life-saving diagnostics and treatments, and delay patient access to the most advanced medical technologies."
MITA was among 700 signatories of a letter submitted to Congress in June urging the repeal of the tax. According to an article in MassDevice, now that the election is over, medical technology lobbyists are redoubling efforts to repeal the tax before the new session of Congress begins in January.
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