ADM Tronics Applauds Permanent Repeal of Medical Device Tax
Northvale, NJ - ( NewMediaWire ) - January 6, 2020 - ADM Tronics Unlimited, Inc. (OTCQB: ADMT), a technology-based developer and manufacturer of innovative technologies and products, applauds the permanent repeal of the Medical Device Excise Tax that was imposed as part of the Affordable Care Act, commonly referred to as Obamacare.
The permanent repeal of the Medical Device Excise Tax was included in the omnibus spending bills for fiscal year 2020, passed by the US House of Representatives and Senate. President Trump signed the bills into law the last week of December, finally ending the uncertainty in the long-awaited repeal of the tax.
Andre’ DiMino, CEO of ADMT, has been a staunch and vocal opponent of the medical device tax since its inception. He made a number of network media appearances describing the negative impact of the tax on the medical device industry.
“The Medical Device Excise Tax was incredibly damaging to the entire medical device industry,” stated Mr. DiMino. “This ill-conceived tax had a particularly negative impact on small, innovative companies like ADMT, that develop and manufacture life-enhancing and life-saving medical technologies. Although it was twice suspended temporarily, it continued to hang like a ‘sword of Damocles’ over our industry.”
When the medical device tax became effective in January 2013 it was expected to raise approximately $30 billion over 10 years to help pay for the Affordable Care Act, former President Barack Obama’s controversial healthcare law. After strong opposition from the medical device industry due to the tax’s job and innovation killing affects, Congress passed temporary measures suspending the tax for 2016 and 2017, and then again for 2018 and 2019. The temporary suspensions kept the uncertainty overhanging investment and innovation in medical device companies and caused the loss of many jobs as companies moved manufacturing to other countries. The permanent repeal of the medical device tax finally eliminated the uncertainty prevalent throughout the medical device industry.
“ADM Tronics is already seeing a positive impact from the permanent repeal,” continued Mr. DiMino. “Just in the few days since the repeal was announced, we have received numerous inquiries at ADMT for quotations for new engineering, development and manufacturing projects for medical devices from our customers. We believe the coming months and years will be fruitful for our company as well as the overall medical device industry.”
ADMT is a diversified, technology-based developer and manufacturer of innovative technologies and products. Its core competency is its ability to conceptualize a technology, bring it through development, regulatory requirements, into manufacturing and commercialization, all in-house. ADMT has three areas of activity: Proprietary Electronic Medical Devices; Medical Device Design, Engineering, Regulatory and Manufacturing Services; and, Eco-Friendly, Water-Based Formulations. The Company’s headquarters, laboratories, FDA-Registered medical device manufacturing operations are located in Northvale, NJ. ADMT’s multi-disciplinary team of engineers, researchers and technologists utilize advanced technology infrastructure, for the research, development and commercialization of medical devices and diversified technologies. Additional information is available at the Company’s website - admtronics.com.
Except for historical information contained herein, the matters set forth in this news release are “forward looking” statements (as defined in the Private Securities Litigation Reform Act of 1995), including statements regarding future revenue growth and performance. Although ADMT believes the expectations reflected in such forward looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. Forward looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations. Factors that could contribute to such differences include those described from time to time in ADMT’s filings with the SEC, news releases and other communications. The Company assumes no obligation to update the information contained in this news release.