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Mission Accomplished: Senator John Kerry May Be Putting Small Biotechs in Jeopardy

Michael B. LosowOn Wednesday, November 6, 2007 Michael B. Losow, Director of Outreach, Biotechnology Industry Organization, informed us that Senator John Kerry is trying to get an extension to the authorization of the Small Business Administration (SBA) program for two years.

He said, “If this happens, the Small Business Innovation Research (SBIR) program problems won't be addressed for another two years. That means that any small biotech with 51 percent or more venture capital funding will not be able to tap into the SBIR program and develop promising ideas. This kind of delay not only diminishes the opportunities for companies to develop their pipelines, but it also diminishes the hope of the patient communities that are looking for newer, better - or sometimes even first - treatments.”

The value of the SBIR program

Joyce CramerJoyce Cramer, President of the Epilepsy Therapy Project (ETP) commented, “The SBIR program hasserved a valuable role in helping start-up companies obtain seed money to evaluate their products. The grants should desire to see these entrepreneurs have venture capital investors because that demonstrates an independent review process of potential commercial viability.”

She noted, “We at ETP agree that current restrictions on investments should not preclude eligibility for SBIR grants. This is an avenue we want to encourage for new epilepsy therapies. Let's support BIO's efforts to have Congress address these flaws so we can speed development of new drugs and devices.”

We put out an action alert as follows: What you can do

We know that many of you have been following this issue and therefore, if you have contacts with any of the following offices, it would be very valuable to call in today. Senator Levin (Michigan), Senator Snowe (Maine), Senator McCain (Arizona), Congresswoman Velazquez (New York), Congressman Chabot (Ohio), Congressman Skelton (Missouri) and Congressman Hunter (California). Note that the Conferees could finish as early as today so it is urgent that if you are willing to call, you call today.

Loscow noted that Paul Poteet put together some talking points that you might find useful. For futher information: click here for a talking points memo, letters sent by the organization (November 6, 2007- October 18, 2007).

Success Update

Friday, November 9, 2007 Michael Loscow wrote us and said, “We have just learned the provision that would have extended the current SBA authorization (without essentially eliminating a fix for the SBIR problem for at least two years) has been stricken from the conference. With you assistance, and the calls you made, there will be a sense of the Congress that SBIR is important to DoD. Our Congressional champions who have supported the eligibility change wanted to pass along their thanks for your work.

We look forward to continuing to work with you to get a fix, but for now there is hope it can still be done this year or early next year. We at BIO thank you for your quick action as well.


Submitted: 11/07/07
The Editors/ November 8, 2007

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