Health Care Reform,Part 2:Medtronic Reacts

Under the new health care reform law,Medtronic will have to pay an excise tax of 150-200 million dollars a year,according to CEO Bill Hawkins.They will slow down expense growth to accomodate it.Although there are some good things in the bill,such as the expansion of coverage to more citizens,it will have an impact on research and development-particularly on the smaller companies.It will even impact Medtronic's R&D.It's hard to measure just how much that impact will be,Mr.Hawkins said.
Mr.Hawkins mentioned a recent Medtronic innovation that will improve outcomes and lower costs.It is a replacement heart valve inside of a stent.The device is inserted on a catheter and pushed through the leg to where the old valve is.It is now available outside the U.S.Medtronic hopes to begin U.S. studies on it in the second half of 2010.
Based in Minneapolis,Minnesota,Medtronic operates exclusively in the medical appliances and equipment industry.The NYSE-listed firm employs 37,665 and is active in more than 120 countries.In recent years,it has aggressively sought out acquisitions to augment its product portfolio.Shares of Medtronic were up this morning in early European trading.