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Capital Formation

Due to the unique capital needs of groundbreaking research, growing biotech companies often turn to the public market for financing. Thus, fair and efficient capital markets are vital to the success of biopharmaceutical innovation. Though the public capital markets are an essential component of the biotech financing ecosystem, roadblocks that decrease the capital potential of an offering, increase regulatory costs, reduce long-term liquidity and shareholder value, or distract a company from its core mission have the potential to deter or delay necessary offerings. These barriers reduce the viability of the public market as a capital formation option for emerging biotechs, ultimately harming issuers, investors, and patients alike.

US Department of the Treasury Seal
CFIUS Hub

The Treasury Department announced a pilot program involving the Foreign Investment Risk Review Modernization Act (FIRRMA), triggering reforms to the Committee on Foreign Investment in the U.S. (CFIUS), the interagency committee tasked with reviewing transactions with foreign investors that may pose national security risks.

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Press Releases
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SEC Regulatory Changes Provide Small Biotech Companies Relief from Burdensome Requirements
March 12, 2020
The Securities and Exchange Commission (SEC) has adopted regulatory changes to provide small public companies with a temporary exemption from Sarbanes-Oxley 404(b) compliance. 404(b) requires public companies to report on the internal controls they have in place over their financial reporting…
America’s Bioeconomy Plays Critical Role in Feeding, Fueling, and Healing the World
October 22, 2019
“What has set the U.S. biotech sector apart has been thoughtful, bipartisan public policy approaches that create a favorable climate in which to undertake the lengthy and risky job of investing in and developing the next biotech breakthroughs.”
Proposed CFIUS Regulations Threaten Investment in America’s Life Sciences
October 21, 2019
“BIO fully supports the role of CFIUS in ensuring appropriate national security screening of certain foreign investments, but any rules must not discourage the entrepreneurial spirit that has made America the global leader in biopharmaceutical innovation,” said Tom DiLenge, president of BIO’s…
Letters, Comments & Testimony
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BIO Signs Coalition Letter In Support of the IGNITE American Innovation Act
August 5, 2020
We write as a coalition of advocates for the startup ecosystem to voice our strong support for the IGNITE American Innovation Act, legislation to support startups through the economic crisis by allowing companies to monetize tax assets generated through a focus on researching and producing products…
BIO Comments on Proposed Section 382(h) Regulations
November 13, 2019
The Biotechnology Innovation Organization provided comments to the Treasury Department and Internal Revenue Service on proposed regulations under Section 382 with respect to the built-in gain and built-in loss rules of Section 382(h).
BIO Comments on SEC Proposal to Amend the Accelerated Filer and Large Accelerated Filer Definitions
November 11, 2019
In a recent letter, BIO applauded the Securities and Exchange Commission (SEC) for taking a proactive approach in amending its accelerated and large accelerated filer definitions. “If adopted as proposed, these amendments will benefit startups and their investors by freeing up more capital to…
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