Legislators from both parties have been pushing the President to rethink a portion of his Affordable Care Act, which would slap a 2.3 percent tax on all medical devices.
The tax kicks in January 1, and critics call it a job killer. It's especially threatening to small device companies and startups that are not yet profitable, as the tax is based on gross revenues. In fact, some said it could mean the difference between barely being profitable and going under.
Clint Carnell looks at it from another angle: "The biggest loser is the patient." Carnell is chief executive of Myoscience, a Silicon Valley medical device startup, which has yet to make money. Its first product won't come to market until next year...and you won't be able to get it in the U.S.
Myoscience has been working for the last seven years on a Botox-like treatment that uses cold temperatures instead of a neurotoxin. The aesthetic version of the treatment, called iovera, involves a hand-held device. The first devices will be sold starting next year in Europe, where the tax and regulatory burdens can be lower. Same with Asia.
Americans will just have to wait.
Carnell said the real story here is American ingenuity is going to benefit the rest of the world first.