At Novocure, Ayotte Highlights Opposition to Medical Device Tax

Press Release

Wednesday, U.S. Senator Kelly Ayotte visited Novocure in Portsmouth and highlighted her opposition to the medical device tax. Senator Ayotte's visit at Novocure is a part of visits across New Hampshire to medical device companies that are threatened by this tax, which is a tax on revenue and not on profit. Ayotte has continuously spoken out against this tax, which would impact approximately 3,500 jobs in New Hampshire.

Novocure manufactures devices to treat patients with glioblastoma, a rare type of brain cancer. As a result of the suspension of the medical device tax, Novocure told Ayotte it will use the savings, $1.5 million of tax paid in 2015, to fund new activities and that the savings are enough to pay for 40 clinical trial patients or between 30 and 50 new employees.

"I want to congratulate Novocure on their recent expansion, and thank them for hosting me. I was glad to hear that Novocure has been able to save and direct more resources to their critical products for cancer treatment, and it underscores the need to fully repeal this tax," said Ayotte. "While I am glad that we were able to get a two-year suspension passed, we have to continue this fight so that New Hampshire's medical device manufacturers aren't subject to this burdensome tax.

Ayotte has previously visited Novocure's facilities, and listened to their concerns with the medical device tax. In 2014, Novocure estimated that they would have to pay $1.2 million for the medical device tax. The tax was suspended for two years in the end of the year tax relief package that Ayotte supported. Ayotte has also helped introduce a bipartisan bill to fully repeal the tax.

During her time in the Senate, Ayotte has also worked with Novocure and the Centers for Medicare and Medicaid Services to help ensure that Medicare beneficiaries with glioblastoma have access to this therapy option.

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