MEDCity News recently conducted an interview with Cook Medical CEO Kem Hawkins about the pending 2.3% medical device tax. I found the interview interesting, especially the following points:
- Stryker Corporation announced a layoff of 1,000 workers due to the tax
- Boston Scientific built a $35+ million research and development center in Ireland instead of North America
- Boston-Scientific is also girding for a $100+ million charge to earnings in 2013
- Zimmer plans to lay off 450 and take a $50 million charge against earnings
- Cook Medical has shelved plans to build a medical device factory annually in the U.S.
While the tax has a few months before going into affect, the ramifications and anticipation of this tax are very real. Stryker, Boston Scientific, Zimmer, and Cook Medical are all significant players in the medical device industry. According to the points above, the pending tax has already cost American jobs.
Read the other posts we’ve had on this topic: