AdvaMed Accel Praises House Passage of 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 today from Executive Director Ashley Wittorf on House passage of The American Innovation Act of 2018 (H.R. 6756).

“Today’s House vote is a positive step towards helping smaller companies achieve their goals of growing America’s leadership in medical technology innovation and developing the next generation of advancements to improve patient care.

“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 new innovations will not fall by the wayside.

“Coupled with the House’s previous vote to repeal the medical device tax, these actions collectively demonstrate strong support for a vital sector of our economy that is developing the next breakthrough treatments for patients. We look forward to the Senate’s consideration of this legislation and 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.”