WASHINGTON, D.C. -- AdvaMed President and CEO Stephen J. Ubl issued the following statement in support of the American Life Sciences Competitiveness Act of 2007, introduced in the House by U.S. Reps. Allyson Schwartz (D-PA), Kevin Brady (R-TX), Richard Neal (D-MA) and Wally Herger (R-CA):

"Creating incentives that reward innovation in medical technology is essential to helping patients lead longer, healthier lives and strengthening our health care system. AdvaMed commends Congresswoman Allyson Schwartz for introducing important legislation that will modernize tax laws to encourage continued investment and advancements in medical technology.

"The legislation eliminates the disincentives in the current laws that inhibit the investment in medical technology companies and threaten America's position as the global leader in this vital industry. The updated tax code will especially help smaller companies -- which account for the bulk of the medical technology industry and are a leading source of cutting-edge innovations and medical breakthroughs. More than 70 percent of AdvaMed's members have less than 50 employees, and most of those companies focus on niche products with fewer than $30 million in sales annually.

"Ensuring that inventive, entrepreneurial medical device companies can attract the much-needed funding to develop and bring new technologies to market will result in improved health care for all Americans," said Ann Bunnenberg, President of Electrical Geodesics Inc. and the Board Chair of AdvaMed's Emerging Growth Company Council. "AdvaMed looks forward to working with Rep. Schwartz, other Members of Congress and the administration to encourage swift passage of this legislation."

HIGHLIGHTS OF THE BILL INCLUDE:

-Provisions to make the research and development (R&D) tax credit permanent;

-Reform the net operating loss (NOL) rules;

-Create a medical innovation tax credit for clinical trials;

-Modernize the orphan drug credit;

-Encourage development of new bio-defense, pandemic flu counter-measures; and

-Increase long-term investment in small life sciences companies struggling to raise research capital.

# # #

AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. Our members produce nearly 90 percent of the health care technology purchased annually in the United States and more than 50 percent purchased annually around the world. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit http://www.advamed.org.

Back to HCB News

More Industry Headlines