EntreMed CEO to Testify Before House Committee on Sarbanes-Oxley Reform
WASHINGTON, D.C. (May 2, 2006) – James S. Burns, president and CEO of Rockville, Md.-based EntreMed Inc., will testify on behalf of the Biotechnology Industry Organization (BIO) Wednesday regarding the unintended consequences of Sarbanes-Oxley, the corporate governance law.
Burns will deliver his remarks before the House Committee on Small Business in a hearing titled “Sarbanes-Oxley Section 404: What is the Proper Balance Between Investor Protection and Capital Formation for Smaller Public Companies?” The hearing will take place at 2 p.m. Wednesday, May 3, 2006, in Room 2360 of the Rayburn House Office Building.
Burns’ discussion will focus on the need to reform Section 404, which applies a “one-size-fits-all” approach to internal controls for all publicly traded companies. Complying with Section 404’s costly, time-consuming requirements is placing undue burdens on small public companies. BIO is seeking regulatory reform through the Securities and Exchange Commission (SEC) rather than a legislative fix.
BIO is leading a coalition of 10 healthcare technology, high-technology, electronics and information technology, and semiconductor and venture capital industries in an effort to urge the SEC to ease the law.
The SEC’s Advisory Committee on Smaller Public Companies recently voted 18-3 in favor of scaled reform recommendations for Section 404. The advisory committee’s final report submitted to the SEC reflects a majority of BIO’s reform recommendations.
Following the hearing, Burns’ full testimony will be available on BIO’s website at www.bio.org.
For additional information, including a complete witness list, visit the committee’s website at http://wwwc.house.gov/smbiz/.
EntreMed Inc. (Nasdaq: ENMD) is a clinical-stage pharmaceutical company developing therapeutic candidates primarily for the treatment of cancer and inflammation. Panzem® (2-methoxyestradiol or 2ME2), the company’s lead drug candidate, is currently in Phase II clinical trials for cancer, as well as in preclinical development for rheumatoid arthritis. MKC-1, an oral cell cycle regulator, is also in Phase II studies for cancer. EntreMed’s goal is to develop and commercialize new compounds based on the company’s expertise in angiogenesis, cell cycle regulation and inflammation – processes vital to the treatment of cancer and other diseases, such as rheumatoid arthritis. Additional information about EntreMed is available on the company’s website at www.entremed.com and in various filings with the SEC.
BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and 31 other nations. BIO members are involved in the research and development of healthcare, agricultural, industrial and environmental biotechnology products.