WASHINGTON, Sept. 13 /PRNewswire/ -- Jim Greenwood, president and CEO
of the Biotechnology Industry Organization (BIO), issued the following
remarks regarding comments submitted Tuesday by BIO and a group of
organizations representing high-growth industries to the Securities and
Exchange Commission (SEC) concerning burdens created by Section 404
(internal controls) of the Sarbanes-Oxley Act:
"BIO, along with healthcare, high technology, communications and
information technology, and electronics and semiconductor industries
strongly urge the SEC to adopt Section 404 reforms expeditiously based on a
framework that is cost-effective, 'scaled' and 'proportional' to the size
and complexity of corporate structures.
"For high-growth industries, the implementation of Section 404 will
have a significant impact on the long-term competitiveness of American
companies and the U.S. capital markets. Section 404 has imposed cost
burdens on high-growth companies and their management far beyond what
Congress intended and what is needed to protect investors against corporate
fraud.
"Four years after enactment of the Sarbanes-Oxley Act, it is necessary
to correct sections that are creating unforeseen, detrimental effects on
smaller public companies. We support reforms that enable emerging companies
to remain competitive and do not force companies to divert valuable
research and development dollars to administrative tasks," Greenwood said.
BIO and the group stated these points in formal comments submitted to
the SEC in response to the commission's Concept Release Concerning
Management's Reports on Internal Control Over Financial Reporting,
published in July, and the Internal Control Over Financial Reporting in
Exchange Act Periodic Reports Non-Accelerated Filers and Newly Public
Companies, published in August.
In their comments, BIO and the other organizations stated their support
for the SEC's proposal to extend the deadline for smaller public companies
to comply with Section 404. Under the proposal, non-accelerated filers
(companies with less than $75 million in market capitalization) would not
be required to comply with the costly external auditor attestation
requirements in Section 404 until Dec. 15, 2008. The group also supports
the SEC's recommendation for a transition period for new public companies,
which would delay Section 404 compliance requirements to the date of the
company's second annual report.
BIO and the group also expressed support for the SEC Advisory Committee
on Smaller Public Companies' vote (18-3) in April that favored scaled
reform recommendations for Section 404.
Joining BIO in submitting comments were TechNet, Telecommunications
Industry Association, Electronic Industries Alliance, Semiconductor
Industry Association, Advanced Medical Technology Association, Medical
Device Manufacturers Association, Association of Bioscience Financial
Officers and the California Healthcare Institute.
The SEC is expected to publish final reforms on the Concept Release and
further reporting delays for non-accelerated and newly public companies
later this fall.
To view comments, click on http://www.bio.org/tax/sox/.
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. http://www.bio.org
SOURCE Biotechnology Industry Organization
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Related links:
http://www.bio.org/
CONTACT:
Kim Coghill, +1-202-962-9232 or Jeff Joseph,
+1-202-962-9230, both of BIO
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