WASHINGTON, May 18 /PRNewswire/ -- Jim Greenwood, president and CEO of
the Biotechnology Industry Organization (BIO), issued the following
statement in response to the Securities and Exchange Commission's (SEC)
release of intended actions related to implementation of Section 404 of the
Sarbanes-Oxley Act of 2002:
"BIO is encouraged by the SEC's statement of intent to review the cost
burdens for smaller public companies associated with Section 404 compliance
and to consider reforms. BIO considers the decision a positive step toward
implementing Sarbanes-Oxley as Congress intended. In a release Wednesday,
the SEC said its forthcoming reform concept document will address several
issues that may be the subject of Commission guidance to address the needs
of public companies. It also states that the SEC will seek input on the
appropriate role of outside auditors in connection with the requirements of
Section 404 in order for the Commission to provide alternatives to the
current approaches.
"The SEC has begun to review and consider the recommendations by
various entities, including BIO and its multi-industry coalition. The SEC
has indicated its intent to reform internal control requirements so that
they are 'scaled' and 'proportional' to the size and the complexity of the
companies, consistent with BIO's proposals. BIO intends to continue working
with the SEC and the Public Company Accounting Oversight Board (PCAOB) to
enact revisions favorable to smaller public companies," Greenwood said.
In the next step, the SEC will release its reform concept document for
public comment. BIO intends to provide a detailed reform framework that
takes a risk-based, cost-effective approach to internal controls. Section
404 should be based on the level of product revenues, which defines the
complexity of corporate structures and the need for increased controls.
Also in its announcement Wednesday, the SEC said it will propose a
postponement of Section 404 requirements for the smallest filers.
BIO represents more than 1,100 biotechnology companies, academic
institutions, state biotechnology centers and related organizations across
the United States and 31 other nations. BIO members are involved in the
research and development of healthcare, agricultural, industrial and
environmental biotechnology products.
SOURCE Biotechnology Industry Organization
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Related links:
http://www.bio.org
CONTACT:
Kim Coghill of Biotechnology Industry
Organization, +1-202-962-9200
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