Thursday, May 3, 2012
CBSA Event Coverage: 'Tax on medical devices threatens profits, exec says'
Quoting from the April 27th article by Wayne Heilman:
"A tax on medical devices approved in 2010 as part of federal health care reform legislation would wipe out all of the profits Colorado Springs-based Spectranetics Corp. expects to make this year when the tax takes effect next year, a top company executive said...
...'We aren’t going to cut back on product development or clinical research, but as we think about investing in the future we will probably think twice and be able to do less of it,' Childs [Guy Childs, chief financial officer of Spectranetics] told about 120 business and civic leaders attending a panel discussion during a lunch hosted by the Colorado BioScience Association and the Greater Colorado Springs Chamber and EDC at the Cheyenne Mountain Resort. “This tax is another variable that detracts from our ability to invest in innovation because it comes right off the top line of our revenue. It impedes further investment and makes it more difficult.'"