Today, the San Francisco Business Times published an op-ed by OncoMed President and CEO Paul Hastings lauding the Jumpstart Our Business Startups Act (JOBS) Act for giving emerging biotech companies a much-needed boost.
As Hastings points out, 80-plus companies will have gone public in the last two years with the help of the JOBS Act. As the biotech industry gathers in San Diego next month for the 2014 BIO International Convention, several CEOs in attendance will no doubt be planning their own post-JOBS Act IPOs.
Congress is now considering a package of legislation – dubbed JOBS Act 2.0 – that would further ease regulatory obstacles for small companies, including biotechs. JOBS Act 2.0 is a package of legislation that includes targeted market reforms that will decrease the cost of capital and increase the capital formation potential for emerging biotech companies trading on the public market, including:
- The Fostering Innovation Act (H.R. 2629) would update SEC filing status classifications for public companies with little to no product revenue, which would help ease regulatory burdens on emerging biotechs while also reducing bureaucratic hurdles and red tape;
- The Small Company Disclosure Simplification Act (H.R. 4164) would streamline regulations for small public companies and remove a disincentive for companies to access capital in the public markets; and
- The Small Cap Liquidity Reform Act (H.R. 3448) would increase liquidity for emerging growth companies, including biotech innovators, by instituting a pilot program to allow small issuers to choose larger trading increments in order to spur trading activity in their stock.