Donald Trump’s shocking upset in the U.S. presidential race augurs well for healthcare stocks, as industry can expect lower taxes, and deregulation and the dismantling of Obamacare – including the medical device tax.
During his campaign, Trump and his advisors indicated his intention to repeal the Affordable Care Act, a move that has been reinforced with his win, and which would include a repeal of the medical device tax.
The 2.3% medical device levy, enacted as part of Obamacare in 2010, took effect at the beginning of 2013 but was tabled for 2 years last December as part of an omnibus tax and spending bill. The tax, a levy on all U.S. sales of prescribed medical devices, was slated to go back into effect at the beginning of 2018.
Beneficial tax cuts are on the horizon for profitable healthcare companies, according to a Leerink Partners letter to investors, as well as deregulation of the industry as a whole.
“We expect that a Trump presidency carries net tailwinds for American industry in taxes and deregulation,” Leerink partner John Sullivan wrote in a letter to investors. “Repatriation will increase the largest healthcare firms’ financial flexibility and the odds of consolidation in healthcare.”
The medical device tax played a role in a handful of smaller races. In Minnesota the tax featured in a pair of races: incumbent Rep. Erik Paulsen (R) of the 3rd District held off state Sen. Terri Bonoff (D). Angie Craig, a Democrat and former executive at St. Jude Medical (NYSE:STJ), lost her race against libertarian talk-show host Jason Lewis (R) for the seat held formerly held by Rep. John Kline (R), who’s retiring after 14 years on Capitol Hill.
In Virginia’s 10th District, Rep. Barbara Comstock (R) defeated Democrat LuAnn Bennett. In California’s 52nd District, incumbent Rep. Scott Peters (D) held on to his seat.
The post Trump win augurs well for healthcare stocks appeared first on MassDevice.
from MassDevice http://www.massdevice.com/trump-win-augurs-well-healthcare-stocks/
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