AdvaMed Accel Commends House Progress on American Innovation Act

WASHINGTON, D.C. – AdvaMed Accel, the division of the Advanced Medical Technology Association (AdvaMed) focused on issues of concern to smaller medical technology companies, issued the following statement from Executive Director Ashley Wittorf on the introduction and markup this week of The American Innovation Act of 2018 (H.R. 6756).

“AdvaMed Accel applauds Chairman Brady (R-Texas), Reps. Paulsen (R-Minn.)  and Buchanan (R-Fla.), and their colleagues on the House Ways & Means Committee, for their continued commitment to support the development and growth of start-up businesses. In particular, we appreciate the steps taken by the Committee this week to support investment in new companies through changes in the tax code.

“Recognizing the unintended consequences faced by far too many small business innovators today due to net operating loss (NOL) limitations is especially meaningful for new medical technology firms. H.R. 6756 allows capital-intensive medech start-ups, like AdvaMed Accel member companies, to raise multiple rounds of funding without jeopardizing the value of their accumulated net operating losses. This reform will encourage additional investment in innovative medtech companies, which spurs economic growth and job creation and ensures American leadership in the medical technology industry.

“The bill introduction and markup this week are big steps forward for innovative start-ups. Coupled with the Committee’s prior work to repeal the medical device tax, these actions collectively demonstrate strong support for a vital sector of our economy that is developing the next generation of breakthrough treatments for patients. We look forward to continuing to work with Congress on ways to address the unique capital formation challenges faced by medtech entrepreneurs. Investor capital is often the lifeblood of these emerging medical technology companies, some of which do not realize any product revenue for more than a decade.”