BIO's Comments on the Expanded CFIUS Review Pilot Program
On October 10, the Treasury Department announced the launch of a pilot program implementing certain provisions of the Foreign Investment Risk Review Modernization Act (FIRRMA). FIRRMA made several reforms to the procedures of the Committee on Foreign Investment in the U.S. (CFIUS), the interagency committee tasked with reviewing transactions with foreign investors that may pose national security risks. The pilot program will implement some of these reforms on an expedited basis to enable CFIUS to review foreign investments in “critical technologies” in biotechnology, nanotechnology, and other industries that may pose risks to national security. Because of the pilot’s 30-day effective date, covered transactions will soon be subject to the increased CFIUS review. Accordingly, biotechnology companies should conduct a detailed analysis to determine whether their technologies are captured by the pilot program.