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The 2.3% medical device tax will spur more consolidation within the industry as the measure cuts investments and impacts company valuations, says St. Jude Medical CEO Daniel Starks.

MassDevice.com Wall Street Beat

The ever-looming 2.3% medical device tax "will have more impact on businesses than is generally appreciated, St. Jude Medical (NYSE:STJ) CEO Daniel Starks told investors during the company's earnings call this week.

Starks described a downward spiral of events that will begin Jan. 1, 2013, with giving the federal government a 2.3% cut of every U.S. medical device sale.

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