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Biotech CEO Testifies Before the Joint Economic Committee on Pro-Growth Policies

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Testimony identified policies that will help small growth
companies, including biotechnology firms, access the capital needed to
fund innovative breakthroughs

Rachel King, co-Founder and Chief Executive Officer of GlycoMimetics,
Inc., testified today on behalf of the Biotechnology Innovation
Organization (BIO) before the Joint Economic Committee. King discussed
the need to build on the success of the JOBS Act, FDASIA's "breakthrough
therapies" designation, as well as policies that provide tax relief and
strengthen patent protections.

In her testimony, King stated:

"Since pre-revenue small businesses like GlycoMimetics utilize only
investment dollars to fund our work, we place a high value on policies
like the JOBS Act that induce investment in innovation and prioritize
resource efficiency. Any policy that increases the flow of capital to
emerging companies could lead to funding for a new life-saving
medicine—while any policy that diverts capital to unnecessary and costly
regulatory burdens could lead to the same treatment taking longer to get
to patients, or worse, left on the laboratory shelf."

King testified in support of BIO-endorsed policies that would increase
the flow of capital to innovative small businesses, decrease capital
diversions from the lab to unnecessary compliance burdens, and support
companies once they are public.

These proposed reforms include:

  • Expanding the current smaller-company exemptions from Sarbanes-Oxley
    Section 404(b) auditor attestation requirements by passing the
    "Fostering Innovation Act" (H.R. 1645/S. 2126), which was also
    included in the JOBS and Investor Confidence Act of 2018 (S.488), to
    extend the JOBS Act exemption for certain EGCs for an additional five
    years;
  • Reforming Section 382 of the tax code to encourage investment in high
    growth, pre-revenue companies, while maintaining the current
    anti-abuse provisions;
  • Simplifying and expanding Section 1202 of the tax code to exempt gains
    on investments in Qualified Small Business Stock (QSBS) to encourage
    investment in innovative breakthroughs;
  • Broadening the criteria to enable more innovative startups to benefit
    from the payroll R&D credit in Section 41 of the Tax Code; and
  • Strengthening patent protections through enactment of the STRONGER
    Patents Act, which would improve biotech companies' abilities to
    attract investors who recognize the potential of our innovations.

GlycoMimetics is a clinical-stage biotechnology company based in
Rockville, Maryland. GlycoMimetics undertook a successful IPO in January
2014 using the IPO on-ramp and regulatory relief provisions for EGCs in
the JOBS Act. GlycoMimetics also received "breakthrough therapy"
designation for its drug candidate for treatment of adult
relapsed/refractory acute myeloid leukemia (AML) in May 2017, to advance
in clinical trials.

King's full testimony can be accessed here.

About BIO

BIO is the world's largest trade association representing 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. BIOtechNOW
is BIO's blog chronicling "innovations transforming our world" and the
BIO Newsletter is the organization's bi-weekly email newsletter. Subscribe
to the BIO Newsletter
.

   

Upcoming BIO Events

       

BIO
Latin America Conference

September 4-5, 2018
Sao
Paulo, Brazil

   

BIO
Investor Forum

October 17-18, 2018
San Francisco

BIO
Patient and Health Advocacy Summit

October 25-26, 2018
Washington,
DC

   

 

 

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