The U.S. Supreme Court’s decision to uphold the healthcare reform law – and therefore the medical device tax – could bode well for medical device companies over the long term, Wall Street analysts say.
Companies have already baked the impact of the 2.3% revenue tax into their assumptions, as have most med-tech investors, the analysts say. That likely means a short-term hit on The Street, as the upside of repeal evaporated this morning, but longer-term growth as 30 million to 40 million new patients gain health insurance.