Proposed CFIUS Regulations Threaten Investment in America’s Life Sciences
Washington, DC – In comments submitted to the Department of the Treasury, the Biotechnology Innovation Organization (BIO) warns that new foreign investment regulations as initially proposed by the Department could, if not amended, damage the vitality of America’s thriving life sciences industry by inhibiting investment into U.S. biotechnology companies.
The proposed rules, along with the Committee on Foreign Investment in the United States’ (CFIUS) Critical Technology Pilot Program, would expand the scope of transactions subject to review by CFIUS beyond what BIO believes is necessary to address legitimate national security concerns.
“BIO fully supports the role of CFIUS in ensuring appropriate national security screening of certain foreign investments, but any rules must not discourage the entrepreneurial spirit that has made America the global leader in biopharmaceutical innovation,” said Tom DiLenge, president of BIO’s Advocacy, Law & Public Policy Division. “Unnecessarily broad export controls and foreign investment restrictions will damage this leadership position and only serve to benefit the life sciences industries of other countries. BIO stands ready to work with the administration to ensure that the final rules put in place are narrowly crafted to address national security concerns without unduly disrupting international investment in our nation’s biotech industry.”
In its official comments, BIO highlights the importance of America’s life sciences industry:
“The biotechnology industry is still in many ways in its infancy, but in just four decades, the scientists, researchers, and entrepreneurs working in the industry have revolutionized modern medicine.
"Hepatitis C, a once incurable disease, now has cure rates above 90%. HIV/AIDS is no longer fatal and is now considered a chronic manageable condition. The cancer death rate has fallen by 20% since its peak in 1991 and 83% of children with cancer survive, compared to 58% in 1970. And more than 730,000 children’s lives in the United States over the last 20 years have been saved because of advances in vaccines.”
To learn more from BIO’s comments, click here.