WASHINGTON, Dec. 13 /PRNewswire/ -- Biotechnology Industry Organization
(BIO) President and CEO Jim Greenwood today commented on reports that the
Securities and Exchange Commission (SEC) will begin the process of easing
auditing standards for small, publicly traded companies. Earlier this year,
a BIO-led coalition called for scaled reforms to Section 404 of
Sarbanes-Oxley to provide smaller public companies relief from costly
Section 404 requirements:
"I commend SEC Chairman Chris Cox and the Commissioners for recognizing
that the present implementation of Sarbanes Oxley is not working. Relaxing
these burdensome regulations is a welcome development that is long overdue.
For years, small biotechnology companies have been suffocated by the onus
of complying with the Sarbanes-Oxley (SOX) Act. Easing the regulations will
enable biotech companies to invest in what they do best -- developing new
technologies that extend lives and alleviate suffering from horrible
diseases that affect families across the world.
"Our companies typically have limited cash flow and revenue, as it
often takes more than a decade to develop revolutionary new therapies to
fight disease. Unfortunately, funds that could be invested in these new
therapies may be spent complying with these overly imposing regulations.
"When I served in the Congress, I was deeply involved in the
development of the SOX Act. While well-intended, the implementation of SOX
has unintentionally caused more problems, particularly for small
businesses, than it cleared up. I am hopeful that the expected
principle-based reforms will achieve the original intent of Section 404 --
establishing internal controls that provide investors with the optimal
level of confidence in the financial integrity of a public company.
"We look forward to working with the SEC on the evaluation of this
proposal and implementing a solution that recognizes the needs of emerging
biotech companies."
For more information on BIO's call for Section 404 reforms, please go
to 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
Upcoming Events
BIO CEO & Investor Conference
Feb. 12-14, 2007, New York City
2007 World Congress on Industrial Biotechnology and Bioprocessing
March 21-24, 2007, Orlando, FL
BIO International Convention
May 6-9, 2007, Boston, MA
SOURCE Biotechnology Industry Organization
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Related links:
http://www.bio.org/
CONTACT:
Stephanie Fischer, +1-202-312-9263 or Paul
Winters, +1-202-962-9237, both of the Biotechnology Industry
Organization
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