WASHINGTON, July 11 /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)
publication of the Sarbanes-Oxley Concept Release today. The document is a
prelude to the SEC's forthcoming guidance for the management in assessing a
public company's internal controls for financial reporting.
"Today's release indicates that the SEC understands the heavy cost
burdens associated with the one-size-fits-all approach of Section 404
(internal controls) of the corporate governance act. BIO supports the
Sarbanes-Oxley Act, but seeks internal controls that are scaled and
proportionate to a public company's revenues.
"We appreciate the SEC taking steps to incorporate practical,
risk-based reform of Sarbanes-Oxley. BIO intends to work with the SEC and
other stakeholders in shaping the final guidance so that it does not place
unnecessary burdens on smaller public companies," Greenwood said.
The SEC will accept stakeholder comments on the Concept Release over
the next 60 days. In its comments, BIO will 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.
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, +1-202-962-9232
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