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House Bill Provides Economic Relief to MedTech Start-Ups Struggling Due to COVID
AdvaMed's Wittorf: Phillips/Walorski Bill will Provide "Vital Lifeline"
WASHINGTON, D.C. – The Advanced Medical Technology Association (AdvaMed) today issued the following statement from Ashley Wittorf, Executive Director, AdvaMed Accel & Global Head, Investor Relations, on bipartisan legislation (HR 7917) introduced in the U.S. House of Representatives which will provide economic relief to small medtech companies impacted by the COVID-19 pandemic:
"American medtech innovation is driven by small companies and start-ups on the cutting edge of improving patient care. In the best of times, these heavily R&D-focused firms struggle to find the financing and resources they need to navigate tough regulatory and reimbursement pathways in order to bring a new device or diagnostic to market, and that challenge has been magnified by the pandemic. The legislation introduced by Reps. Dean Phillips (D-Minn.) and Jackie Walorski (R-Ind.) will serve as a vital lifeline to these small, entrepreneurial companies, allowing them to weather the current COVID-related economic downturn and continue developing the next-generation treatments and cures patients are waiting for."
The IGNITE American Innovation Act (HR 7917), introduced today by Reps. Phillips and Walorski, would allow medtech companies and other businesses with less than 1,500 employees to bring forward the value of tax assets - specifically up to $25 million in net operating loss (NOL) carryforwards and R&D credits - and also provide a bonus for tax assets generated by research and production of products intended to prevent, diagnose, and treat COVID-19. These provisions will provide fast and efficient capital availability to support companies through the current economic downturn.
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. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.