(Bloomberg) -- Medical device makers are among companies with the biggest potential for stock gains after the Republicans prevailed in midterm U.S. elections.
Boston Scientific Corp. is poised to climb with Republican victories in the Senate amid speculation the party will seek to repeal an excise tax on pacemakers and defibrillators, said Dan Clifton, head of policy research at Strategas Research Partners in Washington.
Republicans roared back in the midterm elections on Tuesday, capturing control of the Senate from Democrats, holding on in crucial governor races and keeping their majority in the U.S. House. While results have probably already started to influence share prices, Clifton says more movement is still possible. He predicts Republicans will hold a vote to repeal the tax on medical devices.
The Republican victories may give companies such as Boston Scientific support to pressure President Barack Obama to eliminate the excise levy. Another device maker with the potential to benefit is St. Paul, Minnesota-based St. Jude Medical Inc, according to Jared Woodard, a senior equity derivatives strategist at BGC Partners LP in New York.
The 2.3 percent tax, part of the 2010 Affordable Care Act, is expected to bring in $29 billion through 2022, according to the House of Representatives Ways and Means Committee.
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