The two-year suspension of the medical device tax has led Boston Scientific to put more money into its partnership with Mayo Clinic to start human testing on two new medical devices designed to help cardiovascular patients.
Boston Scientific has led the industry’s lobby against the 2.3 percent tax on U.S. revenues of medical device companies, which was levied in 2013 to help fund the Affordable Care Act.
Thus far, the company has paid about 1 percent of its revenue ($75 million out of $7.4 billion) under the tax. Due to the tax reprieve, Boston Scientific is now putting that money toward research.
For example, engineers from Boston Scientific are working with physicians at Mayo Clinic, talking to doctors about the biggest unmet needs that new devices might be able to address. With the aim of developing new products, the company and the clinic are sharing intellectual property.