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Medical technology industry weathers economic turmoil

by Brendon Nafziger, DOTmed News Associate Editor | June 10, 2010

But AdvaMed cautions there are some "headwinds" in the future, such as the medical device excise tax bundled into the health reform bill.

"There are trends that give me pause," Stephen J. Ubl, president and CEO of AdvaMed, said in a call to reporters.

Driving the group's worries are concerns about the U.S. Food and Drug Administration tightening regulations on approval of new devices; unpredictable foreign regulatory decisions; and whether Medicare is reimbursed enough to adequately pay for new products.

Venture capital funding is down nearly $1 billion from 2008 to 2009, Ubl said.

"In my conversation anecdotally many of [the VC investors] are rethinking investment in our sector due to regulatory and payment uncertainty," he said. "Many are investing in fewer companies and delaying investment until products are further along in the development process, which is not good for startup companies."

The survey, "State Economic Impact of the Medical Technology Industry," was carried out by the Lewin Group, based on U.S. Census and U.S. Department of Commerce data, in all 50 states and the District of Columbia.


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