For medical device companies, the healthcare reform act giveth and it taketh away.
Although the medical device industry will have to pony up around $20 billion to cover a 2.3 percent top-line tax to pay for its share of the Patient Protection and Affordable Care Act, it also stands to benefit from a $1 billion tax break program built into the law.
The Qualifying Therapeutic Discovery Project was initially targeted to help drug companies develop therapies that treat areas of unmet medical need, or prevent, detect or treat chronic or acute diseases and conditions; reduce the long-term growth of healthcare costs in the United States; significantly advance the goal of curing cancer within 30 years; and for “projects that show the greatest potential to create and sustain high-quality, high-paying jobs in the United States, and to advance our competitiveness in the fields of life, biological and medical sciences.”
Companies with 250 employees or fewer can receive up to $5 million in credits. Startups with no tax liabilities can receive a maximum $244,000 grant.
The government already has doled out at least $17 million to 32 companies, according to Genetic Engineering & Biotechnology News. Recipients include:
- Advanced Cell Technology: Four grants totaling $977,917 for its blastomere, myoblast, RPE for Stargardt’s disease and iPS programs
- Biomoda: One grant of $244,479.25 for its CyPath diagnostic assay for the detection of early-stage lung cancer
- DNA Medicine Institute: One grant for $222,999 to develop its universal blood sensor
- Exact Sciences: One grant for $244,479.25 for its Cologuard sDNA screening test aimed at detecting both colorectal cancers and precancers
- InVivo Therapeutics Corp.: One grant for $244,000 for its regenerative spinal treatment
- Micronics: One grant for $244,479.25 for its PanNAT molecular diagnostic platform
- Neuralstem: Three grants totaling $733,437.75 for its small molecule treatment for depression, spinal cord stem cells for ALS and IGF1-expressing neural stem cell therapy
- Pressure BioSciences: One grant for $244,479.25
- Pursuit Vascular Inc.: Unknown amount for its disposable catheter to prevent device-related blood infections, according to MedCity News
- Pericardial Access: Unknown amount
- Quick-Med Technologies: One grant for $244,000 to develop its Nimbus wound dressing and drain technology
- SonarMed: Unknown amount
Another Minnesota company, which did not want to be identified, also won a grant, according to MedCity News.
Material from MedCity News was used in this report.