Medical Device Industry Facing Controversial Tax

BMI believes medical device manufacturers will raise the prices of their products to offset a controversial 2.5% tax proposed in the healthcare reform package currently under consideration by the US Senate. We established this view after seeing a similar trend in the pharmaceutical industry, which is experiencing a challenging operating environment. Despite a 0.87% average monthly drop in the US consumer price index (CPI) during 2009, drugmakers have increased the prices of their medicines by an average of 3.18% y-o-y every month this year. Falling prescription numbers, the upcoming patent cliff and cost-containment measures within the healthcare reform package have

To read the full article, please choose one of the following options: