March 23rd, 2012

Reports MedCityNews:

The U.S. Senate has approved a bill that will make it easier for early stage companies to raise money by broadening the number of people that can invest in them and help companies file for initial public offerings.

But will it mean more biotechnology startups will have the money to survive the multiyear journey to bring their therapeutics or drugs to the finish line of regulatory approval and commercialization? Or will it lead to more companies competing for smaller amounts of money?

James Greenwood, the president and CEO of the Biotechnology Industry Organization, said the Jumpstart Our Business Startups bill would make it easier for small, emerging biotechnology companies to raise money and reduce the hurdles that stymie them.

“These reforms are especially important to innovative biotechnology companies that do not yet have product revenue and must spend investor dollars on compliance rather than the search for cures and breakthrough medicines,” Greenwood said in a statement.

Find out more by checking out the entire article.