It's not front page stuff but repealing this tax is part of every negotiation. Lot's of manufactures are in democratic states, both sides have reason to see the tax repealed the senate proved that with a 79-20 vote in March. I see a high probability it will be. It's a 2.3% tax on sales so weather a medical device manufacturer turns a profit or not, the tax is incurred. Having this repealed would be a big deal for a company like BIOL.
Don't want to keep saying it, but pay attention to this story line.
Don't take your eye off this ball; repeal of the 2.3% medical device tax would be an immediate boost to BIOL's bottom line. The company is very expansion focused right now which means thin margins, an extra 1.5M in earnings or working cash would be a catalyst event. The tax is priced in, a repeal is not, the subsequent lift could be significant, and swift.
lol easy slugger, I'm on your side. The tax has been in place since the beginning of the year, a retroactive repeal would mean and extra $1.5M is freed from big brother's insatiable grasp. Simply it would mean a $1.5m boost to BIOL figures if it were repealed, and since we're looking at EBIDTA in the 1-2 mil range, this could double it, and that would make Q4 look AMAZING to investors.
of course smarter companies raised their prices a tad jan. 1 (when the law took effect) to offset these costs. but true, the companies who did this make a profit. let go further, how does this US tax impact international sales? so a large portion of that lowest estimate of $68m for 2013 would not be affected? funny. keep drawing the short straw.