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

WASHINGTON--(BUSINESS WIRE)-- 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.

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