Washington, D.C. (February 12, 2018)— The Biotechnology Innovation Organization (BIO) announced its strong support today for H.R. 3978, the TRID Improvement Act. The bill includes a provision known as the Fostering Innovation Act, which offers much needed regulatory relief to small biotechnology firms.
The Fostering Innovation Act was introduced last year by Reps. Kyrsten Sinema (D-AZ) and Trey Hollingsworth (R-IN) to build on the success of the Jumpstart Our Business Startups (JOBS) Act. The Fostering Innovation Act extends one vital JOBS Act provision – the temporary exemption from Section 404(b) of Sarbanes-Oxley (SOX) – for an additional five years for pre-revenue small businesses.
“The JOBS Act has stimulated more than 250 biotech IPOs since its enactment in 2012. These emerging innovators, conducting life-saving research, will directly benefit from the Fostering Innovation Act,” said BIO President and CEO Jim Greenwood. “Under current law, the JOBS Act’s SOX 404(b) exemption expires after five years, but most biotech companies remain pre-revenue for more than a decade. The Fostering Innovation Act’s extension, which is narrowly targeted to provide relief for the smallest pre-revenue innovators, will allow companies to focus on advancing their research rather than complying with a costly regulatory burden that does not provide significant insights to investors.
“BIO commends Reps. Sinema and Hollingsworth for their leadership on this important issue, and we strongly support passage of the bill.”
About BIO
BIO is the premier biotechnology advocacy organization representing biotech companies, industry leaders, and state biotech associations in the United States and more than 35 countries around the globe. BIO members range from biotech start-ups to some of the world’s largest biopharmaceutical companies – all united by the same goal: to develop medical and scientific breakthroughs that prevent and fight disease, restore health, and improve patients’ lives. BIO also organizes the BIO International Convention and a series of annual conferences that drive partnerships, investment, and progress within the sector. Learn more at bio.org.