Increased Investment in Research for Debilitating Diseases is Focus of Newly Introduced Bill in Congress Today
The legislation would allow emerging biotech innovators to spend more investor capital on R&D rather than burdensome, one-size-fits-all compliance requirements.
Washington, DC (July 23, 2019) – Today, legislation that would significantly improve the ability of emerging biotechnology companies to focus their investor capital on science and biomedical innovation was introduced in the House of Representatives by Reps. Trey Hollingsworth (R-IN) and Ben McAdams (D-UT). 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 qualifying pre-revenue small businesses.
“For emerging biotech companies, one-size-fits-all compliance burdens present a costly roadblock to growth and medical progress,” said Biotechnology Innovation Organization (BIO) President and CEO Jim Greenwood. “These companies typically operate for many years without product revenue, meaning that funds needed to comply with unduly burdensome regulations are diverted from their intended purpose – scientific advancement for the benefit of patients and consumers. The Fostering Innovation Act would reduce the cost of Sarbanes-Oxley compliance for these companies – without undermining important investor protections – allowing them to utilize investment capital to spur job creation and advance their potentially life-saving research. This will allow companies to focus their capital on treatments for dozens of devastating diseases such as cancer, HIV/AIDS, Sickle cell disease, and many others.”
“Congressmen Hollingsworth and McAdams have put the interests of patients and medical progress first with their bipartisan leadership on this important legislation, passage of which has long been a major advocacy priority for BIO and our emerging growth member companies.”