MichBio Applauds the Fostering Innovation Act, A Bipartisan Bill Offering Continued Support to Emerging Bio Industry Companies

Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

The Michigan Bioscience Industry Association, MichBio, along with organizations around the country, supports the recently introduced Fostering Innovation Act.

The Act introduced by Sens. Gary Peters (D-MI), Thom Tillis (R-NC), David Perdue (R-GA), and Kyrsten Sinema (D-AZ) would build on the success of the JOBS Act by extending the exemption from Sarbanes-Oxley Section 404(b) for an additional five years for pre-revenue biotech companies.

Essentially the Act will allow biotech companies without an FDA approved product on the marketi.e. those still in the R&D phase of business developmentto avoid the costly compliance related disclosures required of established organizations, says Stephen Rapundalo, Ph.D, President and CEO of MichBio. It is vitally important that the emerging biotech companies formerly afforded scaled disclosure under the JOBS Act are able to continue to devote their precious capital toward science rather than compliance.

According to the Biotechnology Innovation Organization, BIO, More than 300 biotech companies have gone public since passage of the JOBS Act in 2012a 270 percent increase over the same period prior to its enactment.

As helpful as the five-year exemption was, biotech startups operate on a different timeline than most other industries. On average, innovative biotech companies spend 10-15 years in the lab or clinic developing potentially life-saving medical advances before their first therapy is approved by the FDA and put on the market, continued Rapundalo, This long period in pre-revenue operations makes the protections offered in the Fostering Innovation Act essential to continued growth in the biotech industry.

We thank Sen. Peters for his continued support of Michigans biosciences industry. We applaud him and the other bill sponsors for their leadership and encourage the Senate to advance this legislation to ensure emerging biotech companies can continue to invest significantly in research and development to discover life-saving medicines.

Without these protections, emerging biotech companies would spend upwards of $1 million per year on the 404(b) audit and other financial disclosure obligations that do not benefit their investors. Advancing this legislation will enhance capital formation and spur scientific advancement across the country for the benefit of biotech investors and patients alike.

For more information on MichBio visit www.michbio.org.

Michigan Biosciences Industry Association (MichBio) is the recognized voice as well as the foremost source of information, advocacy and resources in Michigan for the biosciences industry.

Stephen Rapundalo, Ph.D.
President and CEO, MichBio

Alisha Brown
Director of Marketing and Communications, MichBio