Passed in 2012, the Jumpstart Our Business Startups (JOBS) Act makes the pathway to capital formation more attainable for small biotechnology companies, clearing the way for American innovation and ingenuity by removing bureaucratic hurdles and red tape to speed cures and medical breakthroughs to patients.
In this short video, leading BIO Board Members and biotech company CEOs share the reasons why they feel the JOBS Act is critically important for today’s biotech industry.
The JOBS Act creates an “on-ramp” to the public market for emerging growth companies, allowing them five years to focus on conducting critical research that can lead to cures for debilitating diseases before having to divert funds to costly regulations. This important law allows enhanced access to investors, increasing the capital potential of an offering, and then institutes a relaxed regulatory burden, decreasing the amount of capital diverted from research. This one-two punch is critical for biotech innovators and has increased the viability of the public market for growing companies looking to fund their capital-intensive development programs.
This legislation helps to speed the development of new cures and treatments for patients living with debilitating diseases such as cancer, diabetes, Parkinson’s, and HIV/AIDS. Bringing such groundbreaking cures and treatments from bench to bedside is a long and arduous road, and biotechnology companies are at the forefront of the effort.
Bottom line: In the two years before the JOBS Act, 32 biotech companies entered the public market and in the two years since the JOBS Act, more than 80 companies have gone public.
Check out the video here: