Capital Formation

Due to the unique capital needs of groundbreaking research, growing biotech companies often turn to the public market for financing. Thus, fair and efficient capital markets are vital to the success of biopharmaceutical innovation. Though the public capital markets are an essential component of the biotech financing ecosystem, roadblocks that decrease the capital potential of an offering, increase regulatory costs, reduce long-term liquidity and shareholder value, or distract a company from its core mission have the potential to deter or delay necessary offerings. These barriers reduce the viability of the public market as a capital formation option for emerging biotechs, ultimately harming issuers, investors, and patients alike.

US Department of the Treasury Seal
CFIUS Hub

The Treasury Department announced a pilot program involving the Foreign Investment Risk Review Modernization Act (FIRRMA), triggering reforms to 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.

Letters, Comments & Testimony
November 13, 2019
The Biotechnology Innovation Organization provided comments to the Treasury Department and Internal Revenue Service on proposed regulations under Section 382 with respect to the built-in gain and built-in loss rules of Section 382(h).
November 11, 2019
In a recent letter, BIO applauded the Securities and Exchange Commission (SEC) for taking a proactive approach in amending its accelerated and large accelerated filer definitions. “If adopted as proposed, these amendments will benefit startups and their investors by freeing up more capital to…
October 30, 2019
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…
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