Washington, District of Columbia — This week President Donald Trump announced his first budget plan, and the question on our mind is: How might Trump’s budget affect the medical device industry? Our Chief Strategy Officer, James Rosebush, has decades of experience on Capitol Hill and served as Ronald Reagan’s Deputy Assistant and Chief of Staff to the First Lady, shared his thoughts:
“Over the long haul the medical device industry is fueled by churning innovation and accelerating clinical discovery and trials out of incubation and in to commercialization. Trump has prepared a budget with modest cuts to the National Institute of Health (NIH) including none to innovation programs. At the same time there is no signal that he intends to up the ante for federal research grants in the field. What maybe more telling is how the research and corporate community utilizes lower tax rates to provide cash for research and development. To make the corporate sector more competitive, economists generally like to see growing rates of commitment to innovation and research. The Trump tax cuts on business might be the way to jump start a newer and bigger impact on a generation of desperately needed tools to save lives.”
Concerns medical device technology industry leaders have are the budget cuts to the FDA and the increase in FDA user fees. President & CEO of AdvaMed, Scott Whitaker, commented on President Trump’s first budget in an email to MassDevice.com:
“The medical technology industry has long recognized the benefits of a well-resourced FDA, and would be concerned if the agency were to face significant budget cuts that would negatively impact the approval process. Additionally, with respect to the medical device user fee program, we remain committed to the medical device user fee agreement as negotiated, which represents a substantial increase over current fee levels and will help speed new medical technologies to patients in need,” Whitaker said. Whitaker is seeking further details on the proposal from White House.
President Trump’s proposed plan would slash 18% or $5.8 billion from the NIH budget. This may have resulted in this weeks .5% to 2.0% decline in the value of some medical device technology firms. Here at GII we continue to closely monitor these events as we continue to champion the growth in a sector dedicated to the nations well being.