Biotech Leader Testifies Before House Capital Markets Subcommittee
Washington, DC (May 23, 2018) – Brian Hahn, Chief Financial Officer of GlycoMimetics, Inc., provided testimony today on behalf of the Biotechnology Innovation Organization (BIO) before the House of Representatives Committee on Financial Services, Subcommittee on Capital Markets, Securities, and Investment. Hahn serves as the Co-Chair of BIO’s Finance & Tax Committee.
Hahn’s testimony highlighted the successes of the Jumpstart Our Business Startups (JOBS) Act across the biotech industry. In the six years since the JOBS Act was enacted, 260 emerging biotechnology companies have used provisions in the law to go public.
In his testimony, Hahn stated:
“Despite the success of landmark legislation like the JOBS Act, there is still work to be done in order to make the public markets as efficient and strong as possible. Biotechs are in a constant search for capital as they undertake the monumental task of finding cures for patients, and going public is often one piece of the puzzle that ultimately leads to bringing those cures to the market. However, once a company goes public, an even larger puzzle of outdated disclosure regimes, as well as one-size-fits-all and overly burdensome requirements emerges.
“I believe the proposals being considered before the Subcommittee today will support the growth of emerging, innovative companies, and continue to spur investment in breakthrough scientific discoveries, and ultimately lead to a new generation of therapies for patients across the country, and the world. I hope Congress recognizes the landmark success of the JOBS Act and its impact it has had on the biotechnology industry in the last six years. More importantly, I hope my testimony and this hearing today has shown that there is still work to be done in order to continue supporting the lifesaving innovative treatments companies like GlycoMimetics are developing today.”
Hahn testified in support of BIO-endorsed proposals to build on the success of the JOBS Act with reforms to improve the efficiency of capital markets to help small business innovators raise capital in the public markets and continue to grow and thrive as public companies.
These proposed reforms include:
- Extending the JOBS Act exemption from Section 404(b) mandates of the Sarbanes-Oxley Act from 5 years to 10 years for emerging growth companies;
- Expanding the exemption from Section 404(b) by aligning the SEC definition of a non-accelerated filer with the proposed expanded smaller reporting company (SRC) definition;
- Instituting reasonable and effective SEC oversight of proxy advisory firms; and
- Requiring disclosure of short sales to curb manipulative short selling
GlycoMimetics is a clinical-stage biotechnology company based in Rockville, Maryland. GlycoMimetics undertook a successful IPO in January 2014 using key provisions in the JOBS Act.
Hahn’s full testimony can be accessed at https://www.bio.org/letters-testimony-comments/bio-written-testimony-house-financial-services-hearing-legislative