NEW YORK, NY--(Marketwire - Sep 12, 2012) - A recent $6.4 billion dollar deal between medical companies and U.S. regulators to help speed reviews of new drugs and medical devices could be in jeopardy due to funding. FDA spokeswoman Karen Riley stated that the agency would require certain funding from Congress before they could spend any industry money. Five Star Equities examines the outlook for companies in the Medical Appliances & Equipment Industry and provides equity research on Boston Scientific Corporation (NYSE: [ BSX ]) and Medtronic, Inc. (NYSE: [ MDT ]).

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Riley has stated that the current standstill "could result in the loss of whole user fee programs, programs that have become essential to public health and medical product innovation."

The FDA Safety and Innovation Act, which allows the FDA to collect fees from companies to help fund reviews of innovative drugs and medical devices, became law in July 2012. The new legislation was applauded by industry officials as it would help speed up the lengthy review process of innovative drugs and medical devices.

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Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices that are used in a broad range of interventional medical specialties. The company recently received CE Mark approval for use of its PRECISION PLUS SPINAL CORD STIMULATOR (SCS) System in patients that are in need for magnetic resonance imaging (MRI) head-only scans.

Founded in 1949, Medtronic has grown to become the world's largest independent medical technology company. The company's board of directors recently approved a cash dividend of $0.26 per share of the company's common stock, a 7 percent increase over the prior year. The dividend is payable on October 26, 2012, to shareholders of record at the close of business on October 5, 2012. Shares of the company have gained over 11 percent in the last three months.

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