Shane Kovacs Executive Vice President & Chief Financial Officer, PTC Therapeutics, Inc.

On behalf of the Biotechnology Industry Organization
Before the United States House of Representatives Committee on Financial Services, Subcommittee on Capital Markets and Government Sponsored Enterprises
Legislative Proposals to Enhance Capital Formation and Reduce Regulatory Burdens

April 29, 2015

Executive Summary

• PTC Therapeutics (PTC) is a growing biotechnology company based in South Plainfield, NJ. The Biotechnology Industry Organization (BIO) represents PTC and more than 1,100 other innovative biotech companies, the vast majority of which are pre-revenue small businesses.
• PTC undertook a successful IPO in June 2013 using key provisions in the Jumpstart Our Business Startups (JOBS) Act. More than 140 biotech companies have gone public as emerging growth companies (EGCs) under the JOBS Act, a dramatic change from the constricted IPO environment prior to the law’s enactment.
• A healthy public market is key to funding the search for innovative, next-generation medicines and maintaining the U.S. as a global leader in 21st century industries like biotechnology. BIO supports policies that increase the flow of capital to innovative small businesses and decrease capital diversions from the lab to unnecessary compliance burdens.
• BIO supports the Small Company Disclosure Simplification Act (H.R. 1965), which would exempt EGCs and certain low-revenue issuers from the costly eXtensible Business Reporting Language (XBRL) reporting requirement while requiring the SEC to study and improve the compliance mechanism. BIO believes that growing companies should not have to bear the costs of XBRL until it has been demonstrated to be cost effective and useful to investors.
• BIO supports the Disclosure Modernization and Simplification Act (H.R. 1525), which would require the SEC to review Regulation S-K in order to reduce the regulatory burden on small issuers and eliminate duplicative, outdated, and unnecessary compliance requirements.
• BIO supports the Small Company Simple Registration Act (H.R. 1723), which would allow smaller reporting companies (SRCs) to use forward incorporation by reference on Form S-1. • BIO supports the Reforming Access for Investments in Startup Enterprises (RAISE) Act (H.R. 1839), which would enhance the secondary market for Regulation A+ offerings.
• BIO supports the Encouraging Employee Ownership Act (H.R. 1675), which would reduce the disclosure burden on firms that offer stock options to their employees.
• BIO supports the Improving Access to Capital for Emerging Growth Companies Act (H.R. 1659), which would broaden the impact of the JOBS Act’s IPO On-Ramp...