Small Biotech Companies Oppose House SBIR Bill

WASHINGTON--(BUSINESS WIRE)--Representatives from over 40 small biotech and medical device firms nationwide will convene on Capitol Hill Tuesday, May 10 to voice their firm opposition to legislation that would eviscerate their primary source of R&D funding. H.R. 1425, scheduled for markup in the House Small Business Committee on Wednesday, would permit nearly half of the NIH’s Small Business Innovative Research Program (SBIR) to go to companies that have raised tens of millions in investments from pension funds and large private equity firms. Moreover, despite the documented success of the SBIR program as a source of innovation and job creation the House, unlike the Senate, is maintaining the SBIR allocation at less than 3% of federal R&D grants.

“At a time when America needs sustainable new jobs from a proven segment of our entrepreneurial community, it is unconscionable that the House wants to diminish support for small biotech and med-tech companies”

“At a time when America needs sustainable new jobs from a proven segment of our entrepreneurial community, it is unconscionable that the House wants to diminish support for small biotech and med-tech companies,” said Dan Backer, a spokesman for the Small Biotechnology Business Coalition (SBBC) that has organized the Tuesday CEO meetings. “More than 97% of the NIH’s $30 billion budget goes to academic research or administrative costs. Shifting even one percent of this to small businesses innovators would drive a boom in sustainable job creation while accelerating disease cures,” suggests Backer.

The delegation is scheduled to meet with members of the House Small Business Committee and will convene on Tuesday, May 10 at 11:30 a.m. in the Rayburn Bldg. (B-339) to showcase important products being developed with SBIR support.

About the SBBC: The Small Biotechnology Business Coalition (SBBC) smallbiotech.org is the leading advocate for America’s 2,000+ small, independently owned biotechnology and medical device companies.