Market Overview

Biocom Applauds House Passage of Legislation to Repeal the Medical Device Tax

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Biocom, the association representing the life science industry of
California, issued the following statement regarding the passage of H.R.
184, the Protect Medical Innovation Act, in the U.S. House of
Representatives by a 283-132 vote. The statement can be attributed to
Joe Panetta, Biocom's president and CEO:

"Today, the House passed legislation to fully and permanently repeal the
2.3 percent medical device excise tax. This bipartisan legislation puts
an end to short-term suspensions of the tax which have made it very
difficult for medical technology (medtech) innovators to make long-term
plans for their development.

While in place, the tax increased the effective tax rate for the medtech
industry, stifling innovation, jobs, economic growth, and delaying
patient access to medical technology. It was especially burdensome for
small companies in California that are not yet profitable. A full repeal
will free resources that can instead be invested in research and
development (R&D), capital expansion and hiring.

From insulin pumps and heart valves to pacemakers and artificial limbs,
our industry has helped increase life expectancy while reducing the
burden of chronic diseases. This bill will ensure that medical device
manufacturers have the resources to develop the breakthrough products of
tomorrow, keep more and more patients alive and address some of today's
most pressing health care challenges, such as the opioid epidemic.

Biocom commends California legislators who strongly supported the
legislation. California is home to more than 2,000 medtech
establishments which support 78,000 jobs throughout the state and
generate $63 billion in economic activity annually. We now turn to the
Senate and urge them to pass the bill."

About Biocom

Biocom is the largest, most experienced leader and advocate for
California's life science sector. We work on behalf of more than 1,100
members to drive public
policy
, build an enviable network
of industry leaders
, create access
to capital
, introduce cutting-edge
STEM education programs
, and create robust value-driven purchasing
programs
.

Founded in 1995 in San Diego, Biocom provides the strongest public voice
to research institutions and companies that fuel the local and
state-wide economy. Our goal is simple: to help our members produce
novel solutions that improve the human condition. In addition to its San
Diego headquarters
, Biocom operates a core office serving the Los
Angeles market
, satellite offices in Washington,
D.C.
 and Tokyo,
and has a continuous staff presence in the San
Francisco Bay Area
 and Sacramento. Our broad membership benefits
apply to biotechnology, pharmaceutical, medical device, genomics and
diagnostics companies of all sizes, as well as to research universities
and institutes, clinical research organizations, investors and service
providers.

For more information on Biocom, please visit our website at www.biocom.org.
Connect with us on LinkedInFacebook,
and Twitter (@BIOCOMCA).

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