Dec 14 2009
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.”
http://www.bio.org/