Equity Capital Formation Task Force Efforts commended by BIO.

Press Release Summary:



BIO applauded Equity Capital Formation Task Force members for their report, "From the On-Ramp to the Freeway," designed to stimulate investment and growth in small public companies. Formed by professionals from across America’s start-up and small-cap company ecosystem, Task Force's aim is to examine challenges that growing issuers face on market. Report includes proposals to improve trading environment for small-cap companies on public market.



Original Press Release:



BIO Commends the Equity Capital Formation Task Force for Supporting Emerging Companies



New report endorses proposals to encourage small company growth



WASHINGTON--Today, the Biotechnology Industry Organization (BIO) applauds members of the Equity Capital Formation Task Force for their report designed to stimulate investment and growth in small public companies. The Task Force was formed by professionals from across America’s start-up and small-cap company ecosystem in order to examine the challenges that growing issuers face on the market. “From the On-Ramp to the Freeway,” issued today by the Task Force, includes proposals to improve the trading environment for small-cap companies on the public market.



“Reforms to the current one-size-fits-all tick size regime, as supported by the report, will stimulate liquidity for emerging biotech companies. I also support full enactment of the Regulation A+ changes directed by the JOBS Act and reinforced today by the Task Force.”



For emerging biotech companies, a healthy public market is vital to the capital formation ecosystem. Advanced scientific research is complex and costly, and growing innovators often turn to the public market to fund late-stage R&D.



Since the passage of the Jumpstart Our Business Startups (JOBS) Act in 2012, more than 45 growing biotechs have gone public via the IPO On-Ramp in the law. The proposals in the Task Force report would facilitate liquidity and stability for these newly-public companies, supporting a strong market that benefits both investors and issuers.



BIO Board Member Kenneth Moch, President and CEO of Chimerix, Inc., served on the Task Force. The following can be attributed to Mr. Moch:



“I was proud to serve on the Equity Capital Formation Task Force, and I believe that the report we issued today provides a solid foundation for the continuing discussion on how to improve market functionality for emerging companies. In order to build on the success of the JOBS Act, policymakers should support reforms to both the structure of the market and the regulatory roadblocks that companies face once becoming a public issuer.



“Reforms to the current one-size-fits-all tick size regime, as supported by the report, will stimulate liquidity for emerging biotech companies. I also support full enactment of the Regulation A+ changes directed by the JOBS Act and reinforced today by the Task Force.



“The proposals in this report will support a healthy public market for growing biotechs, and I urge Congress and the U.S. Securities & Exchange Commission (SEC) to consider them.



“I also join with BIO in supporting the ongoing legislative efforts in the market structure arena, including the Fostering Innovation Act (H.R. 2629) and the Audit Integrity & Job Protection Act (S. 1526/H.R. 1564). Costly regulatory roadblocks like XBRL and SOX 404(b) can slow the biotech development process by diverting innovation capital from science to compliance. Comprehensive market structure reform should address the issues raised by the Equity Capital Formation Task Force along with other proposals vital to the success of growing public biotech companies.”



To learn more about the Equity Capital Formation Task Force and to read the full report, please click here.



The Task Force report recommends a pilot program for emerging issuers to choose an increased trading increment for their stock, a change from the current one cent tick size. It also urges the SEC to effectively implement Title IV of the JOBS Act, which increases the offering limit for direct public offerings under Regulation A from $5 million to $50 million.



Mr. Moch testified on these issues this summer before the House Subcommittee on Capital Markets. To read his testimony, please click here.



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, an online portal and monthly newsletter chronicling “innovations transforming our world.” Subscribe to BIOtechNOW.



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Contacts



Biotechnology Industry Organization

Tracy Cooley, APR, 202-312-9274

Web: www.bio.org

Blog: www.biotech-now.org

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