Analysts: Device companies already absorbed excise tax
Medical device companies have already absorbed the 2.3% excise tax without touching profits or product prices, according to analysts.
Many medical device companies have long petitioned for a repeal of the 2.3% excise tax on U.S. sales, but analysts say medtech companies have already managed to absorb the tax without taking a hit to the bottom line or jacking up costs for consumers.
Seven months into the tax, companies are instead coping by making layoffs,freezing salaries and restructuring. Many large medical device companies have landed headlines with exhaustive restructuring plans and sweeping layoffs.