Medical device company, Boston Scientific (NYSE: BSX [FREE Stock Trend Analysis]), up about 3 percent Tuesday, recently invested $150 million in China and announced layoffs in the U.S. A soft market combined with the tax could be affecting their decision.
While it's too early to measure the full impact of the excise tax on the medical device industry, the reaction in the market has been mixed.
Over the last five trading days shares of Minneapolis-based Medtronic (NYSE: MDT) the world's largest medical implant maker, are up 5 percent.
The company raised the lower end of its guidance due to the renewal of the U.S. Research and Development (R&D) tax credit. The company said that the tax credit will likely boost its 2013 revenue by $30 to $35 million.
Some medical device companies are already under pressure. St. Jude Medical (NYSE: STJ) was down about 1 percent Tuesday ahead of tomorrow's earnings report that could shed light on how the excise tax could affect future earnings. The 38 percent short interest in the stock is evidence of concern on the part of investors.