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below). The transaction was announced in June of 2014 and fi nalized in January 2015. Zimmer Holdings acquires Biomet ($13.9 billion) In the wake of Zimmer’s April 2014 announcement that it was acquiring cross-town rival Biomet for $13.5 billion, the medical device press immediately questioned the deal’s impact on a combined workforce and supply-chain. The Wall Street Journal went so far as to lead their coverage with the title “The Deal That Shook Warsaw, IN.” Combined, Zimmer/ Biomet will have over 2 million square feet of manufacturing, R&D and administrative facilities in Warsaw. The transaction is pending. Thermo Fisher Scientifi c acquires Life Technologies Corp. ($13.6 billion)


Thermo Fisher Scientifi c acquired Life Technologies for $13.6 billion in a transaction that makes it one of the top genetic testing companies worldwide. The transaction was completed in February 2014. Thermo Fisher is the world’s largest maker of scientifi c and laboratory equipment, and this transaction brings it to the forefront of personalized medi- cine. The acquisition will also enhance Thermo’s offerings in the fast growing fi eld of genetic sequencing and specialty diagnostics, as well as its ability to grow in China and other emerging markets.


Medical Device Tax


In late 2014, the Advanced Medical Technology Associa- tion (AdvaMed) conducted its second annual survey indicat-


ing that the medical device tax has cost the industry roughly 37,500 jobs since its enactment and could result in as many as 195,000 jobs lost or forgone in the industry. Further, many companies have either reduced medical device research and development, or have transferred research or manufacturing resources to locations outside the United States. Half of the survey’s respondents claimed they would continue to offset the tax burden by reducing headcount or R&D initiatives if the tax is not repealed. After two years in effect, US companies have dealt with the new tax in very different ways. According to a survey of 685 medical device executives performed by the Emergo Group, smaller companies have fewer options for dealing with costs of tax, and were less likely to have done anything major in response. Larger companies were more likely to pass along costs to the customers and more likely to make cuts to R&D budgets, or shed employees.


Repeal of the tax has become a high priority among medi- cal device fi rms and some members of Congress. The Pro- tect Medical Innovation Act of 2015 would repeal the medical device tax retroactively to the fi rst year of implementation in 2013. The recent bill introduced by Rep. Erik Paulsen, R-MN, has won 254 co-sponsors, including 27 Democrats, as of January 2015.


Tax Inversions


A corporate inversion or tax inversion is a fi nancial exer- cise in which a company reincorporates in a foreign country


1,000 1,500 2,000 2,500 3,000 3,500


500 0


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total with Summaries


Total with Statements


FDA 510(k) Clearance Statistics


13 — Medical Manufacturing 2015


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