BIO Expresses Strong Support for TRID Improvement Act

Legislation provides critical regulatory relief to small, pre-revenue
emerging companies

WASHINGTON–(BUSINESS WIRE)–The Biotechnology Innovation Organization (BIO) announced its strong
support today for H.R. 3978, the TRID Improvement Act. The bill includes
a provision known as the Fostering Innovation Act, which offers much
needed regulatory relief to small biotechnology firms.

The Fostering Innovation Act was introduced last year by Reps. Kyrsten
Sinema (D-AZ) and Trey Hollingsworth (R-IN) to build on the success of
the Jumpstart Our Business Startups (JOBS) Act. The Fostering Innovation
Act extends one vital JOBS Act provision – the temporary exemption from
Section 404(b) of Sarbanes-Oxley (SOX) – for an additional five years
for pre-revenue small businesses.

“The JOBS Act has stimulated more than 250 biotech IPOs since its
enactment in 2012. These emerging innovators, conducting life-saving
research, will directly benefit from the Fostering Innovation Act,” said
BIO President and CEO Jim Greenwood. “Under current law, the JOBS Act’s
SOX 404(b) exemption expires after five years, but most biotech
companies remain pre-revenue for more than a decade. The Fostering
Innovation Act’s extension, which is narrowly targeted to provide relief
for the smallest pre-revenue innovators, will allow companies to focus
on advancing their research rather than complying with a costly
regulatory burden that does not provide significant insights to

“BIO commends Reps. Sinema and Hollingsworth for their leadership on
this important issue, and we strongly support passage of the bill.”

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


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