Statement by BioNJ President and CEO on SEC Regulatory Changes Providing Small Biotech Companies Relief from Burdensome Requirements
"We applaud yesterday's announcement by the Securities and Exchange Commission (SEC) on the adoption of regulatory changes that provide small public companies with a temporary exemption from Sarbanes-Oxley 404(b) compliance. 404(b) mandates that all publicly-traded companies must establish internal controls and procedures for financial reporting and must document, test and maintain those controls and procedures to ensure their effectiveness. While with admirable intention, this regulatory requirement has proven to reduce market capitalizations, increase audit fees, force companies to exit public markets and reduce R&D investments in pre-revenue start-ups -- ultimately slowing down the drug development process for life sciences companies. In these uncertain times, it is more important than ever to support the great work that our industry is doing to ensure emerging biotechnology innovators are able to devote more of their limited resources to potentially lifesaving research and development activities on behalf of Patients around the world."
If you would like information on how your organization can support our public policy efforts or how to develop an employee advocacy program, please contact John Slotman, BioNJ Vice President, Government Affairs, atJSlotman@BioNJ.org.
