BIO Applauds Sens. Tillis and Peters for Introducing the Fostering Innovation Act
BIO Applauds Sens. Tillis and Peters for Introducing the Fostering Innovation Act
The Fostering Innovation Act would build on the success of the JOBS Act and further reduce regulatory costs for biotech small businesses.
Washington, DC (November 15, 2017) – Today, the Biotechnology Innovation Organization (BIO) applauds Sens. Thom Tillis (R-NC) and Gary Peters (D-MI) for introducing the Fostering Innovation Act. This vital legislation would build on the success of the JOBS Act and further reduce regulatory costs for biotech small businesses.
The JOBS Act provides emerging growth companies (EGCs) with a five-year exemption from the costly auditor attestation requirements of Section 404(b) of Sarbanes-Oxley (SOX). The Fostering Innovation Act would extend the JOBS Act’s SOX 404(b) exemption for an additional five years for pre-revenue small businesses. The additional five years of cost-savings would allow growing companies to focus their capital on life-saving R&D rather than one-size-fits-all regulatory burdens.
The following statement may be attributed to BIO President & CEO Jim Greenwood:
“BIO commends Sens. Tillis and Peters for introducing the Fostering Innovation Act. More than 230 emerging biotechs have gone public under the JOBS Act, and this bill would further support their growth. By allowing innovative small businesses to focus their investment capital on science rather than compliance, the Fostering Innovation Act would allow these emerging innovators to remain focused on delivering groundbreaking cures and treatments to patients.
“The targeted nature of the Fostering Innovation Act, which would only benefit pre-revenue companies, represents an important move away from one-size-fits-all regulations. BIO strongly supports this vital legislation, and we applaud Sens. Tillis and Peters for their efforts to reduce compliance costs for emerging biotechs and support small business capital formation.”
The Fostering Innovation Act has also been introduced in the House by Reps. Kyrsten Sinema (D-AZ) and Trey Hollingsworth (R-IN). It was approved by the House Financial Services Committee on October 12 by a bipartisan 48-12 vote.
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