BIO Commends the Introduction of the Helping Startups Continue to Grow Act
In a recent letter, BIO’s Jim Greenwood commended Representative Steil (R-WI) for introducing the “Helping Startups Continue to Grow Act,” which extends the exemption afforded to Emerging Growth Companies under the JOBS Act from certain executive compensation, financial, and other disclosure requirements for an additional five years.
“As helpful as this five-year exemption is, the biotech development timeline takes a decade or more. Emerging biotechs companies working on innovative therapeutics are highly dependent on access to capital during this time. Developing a single therapy requires an average investment of more than $2 billion. During this development stage, companies do not have a product to generate revenue and are dependent on capital markets to fund clinical trials. Every dollar spent on regulatory burdens that do not provide useful information to investors is therefore a dollar diverted from the lab. A five-year extension of EGC provisions will enable small public biotechs to continue to prioritize research and innovation, and will free up more capital to hire scientific and technical talent, invest further in R&D and clinical development, and enhance their ability deliver product candidates to patients suffering from various diseases,” Greenwood wrote.
To read the full letter below.