MASSDEVICE ON CALL — The 2.3% sales tax enacted by the Affordable Care Act isn’t a fan favorite among medical device makers, but there may be room for investors to find new opportunities.
The tax may make young companies more attractive targets and patent portfolios more valuable, for example.
Emerging device maker among the hardest hit by the medtech tax, since the levy applies to sales of even pre-profit device companies, but development-stage groups may have the power to "plan ahead for the tax and adjust their sales strategy in advance instead of cost cutting," according to Wall Street Cheat Sheet.
In addition, the tax does not apply to companies that license their patents to other firms, applying instead to the licensors, making portfolio companies alluring buys.
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