Biotech Research and Development Will Benefit from Sarbanes-Oxley Changes
WASHINGTON, D.C. (April 18, 2007) -- As Securities and Exchange Commission (SEC) Chairman Christopher Cox and Public Companies Accounting Oversight Board (PCAOB) Chairman Mark Olsen prepare to testify before the Senate Committee on Small Business & Entrepreneurship today, BIO reiterated its support for changes to the Sarbanes-Oxley Act of 2002 (SOX) that will specifically benefit small biotech companies.
“The biotechnology industry was particularly hard-hit by the complex and burdensome regulations imposed by SOX’s Section 404. We have supported changes to its implementation, so our companies can refocus on our most important mission of researching and developing new therapies to improve human health, expand our food supply, and provide new sources of energy,” said BIO President and CEO Jim Greenwood. “We are pleased to see that agency and congressional leaders are listening.”
The SEC in December released a proposal to provide guidance to management to improve Section 404 by eliminating waste and duplication in SOX compliance procedures. The commission is expected to vote on the new standards by the end of May or early June, in time for the 2007 financial statement audits.
“Our industry looks forward to continuing to work with regulators and policy-makers to establish a more equitable implementation of SOX — one that maintains the original intent of the law by providing investors with confidence in the financial integrity of public companies while also lessening the burden on small companies like ours who are investing in innovations that are improving life for millions of people."