ObamaCare imposed an excise tax on medical-device makers that they have been lobbying relentlessly to repeal, arguing it kills jobs. However, according to Alex Lykken of Pitchbook, an information provider that collects and analyzes data on financial deals, ObamaCare’s medical-device tax has not had an impact on venture financing of new medical device companies:
Devices & supplies financings, believe it or not, hit a 10-year high in 2012, two years after the ACA was passed and just a year before the medical device tax went into effect. It seems odd that VC firms, which look several years down the road before investing, would complete more financings and invest more capital in the industry every year right until January 2013.
There is another plausible explanation: Device makers have global markets, and investors are looking to them, not the U.S., for growth.