Devices & Diagnostics

Morning Read: GOP pushing repeal of medical device tax in House this week

Current medical news from today including the GOP’s push for Paulsen’s bill to repeal medical device tax in the House; what VCs look for in a pitch; and a last-minute addition to Senate’s User Fee Act that could delay mHealth guidelines.

GOP leaders plan to push legislation – what they’ve deemed the Protect Medical Innovation Act – to repeal the medical device tax through the House this week, despite its likely failure in the Democratic-run Senate. Sponsored by Minnesota Rep. Erik Paulsen, the bill would offset the lost $29 billion in estimated revenue over the next 10 years from the medical device tax by “recapturing” overpayments under a new health insurance tax credit, according to the Minnesota Star Tribune.

If you can’t clearly articulate your company’s value-add, the problem you’re solving and why your product is novel in less than 60 seconds, you shouldn’t be pitching it yet. That’s advice from Foundation Capital partner Charles Moldow, who sheds more light on a good investor pitch in this piece for TechCrunch. “I’m always shocked with the lack of follow up from entrepreneurs who have come in and pitched me, but leave it in my court to follow up,” he writes.

A last-minute addition to the Prescription Drug User Fee Act passed by the Senate last week would delay the FDA’s outline of its approach to regulating mobile medical apps for up to 18 month. Under the amendment, the U.S. Department of Health and Human Services would convene a group of  outside experts to help draw up recommendations for regulation of medical devices and medical software. The bill will now be reconciled with the House’s version, which was passed without a similar amendment.

When a biotech company goes to the trouble of changing its name, there’s usually good reason for it. And that reason often tells an interesting story about the company’s direction, as the story of Aveo Oncology as told by XConomy illustrates.

Although in public settings he appears confident that the Supreme Court will uphold his healthcare reform law, President Barack Obama is apparently confiding in donors that he may have to revisit his plan for healthcare reform in a second term, according to Bloomberg’s anonymous sources.