San Diego spine implants maker NuVasive said Thursday the federal tax reform bill creates “a tremendous opportunity” for innovation in the medical device industry.
Gregory T. Lucier, chairman and chief executive officer of NuVasive, said the bill approved by Congress on Wednesday will boost his company’s free cash flow by “well in excess of 10 percent per year,” providing a significant boost for innovation.
“Innovation requires fuel, and this surplus can support increased investments in R&D to provide solutions that empower spine surgeons to change the lives of their patients,” Lucier said. “This is a tremendous opportunity for the medical device industry, and a major spark in our ability to continue to invest in life-changing innovations.”
The bill cuts the maximum corporate tax rate from 35 percent — one of the highest levels internationally — to 21 percent. President Trump is expected to sign the legislation on Friday.
Lucier said the savings will allow NuVasive to deliver “incredible incremental value-generating opportunities for our shareholders.”
NuVasive makes instruments, implantable hardware, biologics, software systems and other products for spine surgeons and their patients. The company had sales of $962 million last year and employs 2,300 people in more than 40 countries.
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