Small Company Capital Formation Act is applauded by BIO.

Press Release Summary:



BIO strongly supports introduction of S. 1544, Small Company Capital Formation Act. BIO President and CEO Jim Greenwood said this legislation provides capital-raising tool for small and emerging companies otherwise without capital funding options beyond mergers and acquisitions sector. Greenwood also noted that raising exemption to $50 million would aid companies short on resources to raise capital through public offerings without lengthy paperwork process.



Original Press Release:



BIO Praises Introduction of Small Company Capital Formation Act



WASHINGTON--The Biotechnology Industry Organization (BIO) strongly supports the introduction of S. 1544, the Small Company Capital Formation Act, introduced by Senators Pat Toomey (R-Pa.) and Jon Tester (D-Mont.).

"It takes on average 10 years and more than $1 billion to bring a new therapy to market and the biotechnology industry has shrunk over the past several years as many companies struggling to raise capital are ultimately forced to shutter operations."
The legislation would reform the Security and Exchange Commission's (SEC's) current Regulation A ("Reg A") by expanding its eligibility requirements to include companies conducting direct public offerings of up to $50 million, an increase from the current threshold of $5 million.

BIO President and CEO Jim Greenwood made the following statement today:

"BIO supports the Small Company Capital Formation Act to provide a useful capital-raising tool for small, emerging companies that are otherwise without capital funding options beyond the mergers and acquisitions sector.

"Raising the exemption to $50 million would greatly help cash-strapped companies that are short on resources to raise much needed capital through public offerings without a lengthy paperwork process.

"The biotech industry is overwhelmingly made up of small businesses that are founded by entrepreneurs and supported largely by private capital. These emerging biotech companies are charged with turning research into reality, and they hold great promise for finding cures and therapies to treat serious and life-threatening diseases such as HIV/AIDS, sickle cell anemia, Parkinson's disease and multiple sclerosis.

"It takes on average 10 years and more than $1 billion to bring a new therapy to market and the biotechnology industry has shrunk over the past several years as many companies struggling to raise capital are ultimately forced to shutter operations."

For additional data and analysis on the U.S. biotechnology industry, please visit http://insidebioia.com/.

Upcoming BIO Events

BIO India International Partnering Conference
September 21-22, 2011
Hyderabad, India

BIO China International Conference
October 12-13, 2011
Shanghai, China

10th Annual BIO Investor Forum
October 25-26, 2011
San Francisco, Calif.

BIO-Europe 2011
October 31-November 2, 2011
Duesseldorf, Germany

BIO IP Counsels Committee Fall Conference & Meeting
November 2-4, 2011
New York, NY

BioMalaysia 2011 Conference & Exhibition/
2011 Pacific Rim Summit on Industrial Biotechnology and Bioenergy
November 21-23, 2011
Kuala Lumpur, Malaysia

About BIO

BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world's largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIO produces BIOtechNOW, a multiblog platform and monthly newsletter that aims to create an online biotech community where the the industry can connect to discuss the latest news. Subscribe to BIOtechNOW.

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Contacts
Biotechnology Industry Organization (BIO)
Tracy Cooley, APR
202-312-9274
tcooley@bio.org Email

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