BIO Lauds Sens. Toomey and Menendez for Introducing the Start-up Jobs and Innovation Act
Washington, D.C. (February 4, 2015) – Today, the Biotechnology Industry Organization (BIO) praised Senator Pat Toomey (R-PA) and Senator Robert Menendez (D-NJ) for introducing the Start-up Jobs and Innovation Act, which will help spur investment in small biotech companies and other innovative businesses. BIO also congratulates Senator Pat Roberts (R-KS) and Senator Tom Carper (D-DE) for cosponsoring this legislation.
The following can be attributed to Jim Greenwood, BIO President and CEO:
“We are proud to support this legislation designed to encourage investment in early-stage research and help invigorate and encourage scientific progress. By providing incentives for investors to partner with a young research companies, the Start-up Jobs and Innovation Act stimulates R&D investment at the earliest, most-critical stages of a company’s research.
“The R&D Partnership Structures allowed by the legislation will lead to long-term investment strategies, which are critical to R&D which will hopefully lead to new treatments and cures. Allowing longstanding investors in small innovative businesses to benefit from a reduced capital gains rate similarly will encourage critical investments.
“Many research-intensive companies rely on private investment to support their groundbreaking R&D. Because of the long research process intrinsic to scientific advancement, emerging innovators operate without product revenue and thus cannot use the sale of one product to finance the development of another. Thus, we need to take additional steps to attract the investment dollars that fund the decade-long, billion dollars it takes to ultimately receive approval of new treatments or cures.
“Furthermore, the economic effects of scientific advancement are striking. High-paying biopharmaceutical jobs are essential for continuing America’s leadership in the 21st century innovation economy.
“I want to thank Senators Menendez and Toomey for introducing this critical legislation, and we look forward to working with them on this important issue.”
An independent study of the Start-up Jobs and Innovation Act R&D Partnership Structures proposal revealed that it will create more than 150,000 additional jobs and spur increased investment by $10 billion per year. The biotech industry already has an employment impact of more 7.5 million Americans, the vast majority of whom are working for growing businesses.
For more information on BIO and the biotechnology industry, please visit http://www.bio.org.