Biotechnology companies are hard at work on the cutting-edge innovations we need, but those breakthroughs are at risk from current tax policy. The Biotechnology Innovation Organization, which represents more than 1,000 biotech companies, thanks Senator Maggie Hassan (D-NH), Senator Todd Young (R-IN), and the original cosponsors of the American Innovation and Jobs Act (S. 866) for reintroducing this important legislation. The bill should be enacted quickly to restore the immediate expensing of research and development expenditures and remove what is essentially a tax on innovation. Developing the next generation of biomedical breakthroughs that patients need, as well as new traits and technologies to strengthen food security and climate resiliency, is expensive and extremely time consuming. For example, it can take over 10 years and more than a billion dollars to bring a new drug to market. Robust investment is the fuel needed to keep the engine of innovation running, and the American Innovation and Jobs Act is needed to keep that fuel flowing. Unfortunately, the mandatory capitalization of R&D costs, included in the 2017 Tax Cuts and Jobs Act, makes investment in emerging companies more challenging. The American Innovation and Jobs Act also would prevent an increased tax burden on small, emerging biotech companies that rely on pre-revenue payments from partner companies until they have products on the market. Mandatory amortization places a heavier tax burden on budding innovators that use immediate expensing of R&D costs to offset taxes on these up-front payments needed to keep the lights on. The U.S. has a long and admirable track record of incentives to keep our nation at the forefront of technological innovation, a record that is now in danger. BIO calls on Congress to swiftly pass the American Innovation and Jobs Act to ensure that today’s tax policy doesn’t put tomorrow’s biotech breakthroughs at risk.

Mr. Delacourt is a senior litigator and regulatory counselor with more than a decade of experience advising biotech companies WASHINGTON – (March 15, 2023) – The Biotechnology Innovation Organization (BIO) welcomes John Delacourt as Deputy General Counsel – VP Health, Regulatory, and Commercial Operations. John will work with BIO’s staff to lead legal support for commercial operations and with its membership to ensure patient access to life-saving medicines, bring down barriers to innovation, and promote policies conducive to advances in agriculture and environmental science.  John comes to BIO from another biotech trade group – the Plasma Protein Therapeutics Association (PPTA) – where he served as Chief Legal Officer & Head of Global Policy. While at PPTA, John led the association’s litigation defense and regulatory compliance efforts in both the United States and Europe. He also served as legal advisor to PPTA’s principal governing bodies, including on such issues as drug shortage preparedness, discriminatory labeling practices, and secure handling of biometric data. Prior to joining PPTA, John practiced at major law firms in Washington, D.C. and New York. He also served in senior roles at the Federal Trade Commission, including as Chief Antitrust Counsel of the FTC’s Office of Policy Planning. “John’s healthcare and compliance experience make him a welcome addition to our growing legal team,” said Chief Legal Officer Peter McHugh. “As BIO continues to address the legal challenges presented by the Inflation Reduction Act, advocate for efficient market access for innovative products, and support a favorable environment for biotech investment, we are excited to have John on our side.” John is a graduate of Georgetown University and Harvard Law School.