Medical device companies may have painted too gloomy of a picture of how the industry will be impacted by the medical device tax, recent reports suggest. The same week the presidential candidates met in the last debate, several analysts predicted that healthcare stocks will continue to do well regardless of the outcome of the election. Today, executives from orthopedic device maker Zimmer Holdings said in a conference call with investors that the tax will have less impact on the company than it previously predicted.
"The tax is not going to be that expensive, it's not going to be quite as significant as the $40 million to $50 million that I've referenced in 2013," Executive Vice President of Finance and Chief Financial Officer James Crines said, according to MassDevice.
Healthcare stocks are trading near all-time highs, says Marc Lichtenfeld, Senior Analyst on the Investment U website. The increasing aging population and poor nutritional habits will continue to drive growth, Lichtenfeld predicts.
The health IT market especially will grow rapidly, as social health networks and health apps become more popular, said Raj Prabhu, Managing Partner of Mercom, commenting on the company's recently released Healthcare IT News report. Health IT companies could also see a boost as a result of the plans for state exchanges in the Affordable Care Act, comments Susan Aluise for Investor Place.
— Camilla Andersson