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.
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.