Press Release Summary:
BIO commended the House of Representatives for including provisions intended to ease small business regulatory burdens, part of the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173). One provision would permanently exempt companies with market capitalizations of $75 million or less from Section 404(b) of the Sarbanes-Oxley Act of 2002. Another would direct SEC to perform study evaluating costs and benefits of compliance with SOX Section 404(b) for companies that meet specific criteria.
Original Press Release:
BIO Commends House for Easing Regulatory Burdens as Part of the Wall Street Reform and Consumer Protection Act of 2009
WASHINGTON, D.C. - The Biotechnology Industry Organization (BIO) commends the House of Representatives for including provisions intended to ease small business regulatory burdens as part of the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173) which passed today.
Two provisions in the bill would ease regulatory burdens for small public biotechnology companies. A provision authored by Reps. Scott Garrett (R-NJ) and John Adler (D-NJ) would permanently exempt companies with market capitalizations of $75 million or less from Section 404(b) of the Sarbanes-Oxley Act of 2002 (SOX). An amendment offered on the House floor to remove this language was rejected by a broad, bipartisan vote, with 101 Democrats and 170 Republicans voting in support of the Garrett-Adler language.
Additionally, Rep. Michael Capuano (D-MA) authored a provision that would direct the Securities and Exchange Commission (SEC) to perform a study evaluating the costs and benefits of compliance with SOX Section 404(b) for companies that have public floats of less than $700 million and revenues less than $250 million.
"These bipartisan provisions would provide much needed relief for small public biotechs during the current economic conditions. Currently, 41% of active publicly traded biotech companies fall under $75 million in market cap," stated BIO President and CEO Jim Greenwood. "We urge the Senate Committee on Banking, Housing and Urban Affairs to include similar provisions in its financial services reform bill."
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BIO represents more than 1,200 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.