The medical technology industry is exciting and fast moving. As a specialist consultant in medical technology, I like to keep myself informed about future trends on the market. There has been a lot of movement in recent months, from innovative technologies getting FDA approval to mergers and acquisitions.
I’ve been wondering if Trump and Brexit would have the same impact on this particular industry and therefore decided to do a little research. What do these two major political changes mean for their respective medical technology industries?
Effects of the Trump Administration
According to Reuters, under Trump the medical device industry will be one of the first beneficiaries of tax cuts. Republican governments are known to ease up on regulations and taxes and major players in the industry will most likely be eyeing Trump’s every move. With fewer taxes to pay, jobs could be created and investment for new technologies could increase.
However, if the Trump administration goes through with a $5.8 billion cut to the National Institute of Health, it would not only affect the FDA gravely, but also cut funding for research. It is said that medical technology companies benefit from Obamacare since a larger amount of the population is now insured and can undergo procedures. How would this change if Trump repeals the Affordable Health Care Act? A Trump presidency will most likely increase growth for the medical technology industry, however it remains to be seen to what extent.
What are the possible challenges of Brexit for the industry?
A hard Brexit could decrease growth in the medical technology industry in the UK. As of now, the deal negotiation is very uncertain, a soft, hard (or something in-between) Brexit. What we do know is that there will be a new challenge for the medical technology industry if the UK leaves the single market.
Possible challenges include the loss of life science jobs, EU research funding, a skilled worker shortage and less influence over EU medical device regulations. Access to the single market will be crucial for UK’s medical technology industry not to fall behind. On the other hand, depending on how the pound will perform in future, it could lead to an increase in foreign investment.
Interesting times lie ahead and I am curious to see how everything will unfold.
What do you think will happen to the UK's medical technology industry after leaving the EU?
Olivia Anton, DACH Specialist Consultant at Projectus Consulting
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