Five years ago today, the Jumpstart Our Business Startups (JOBS) Act became law. The JOBS Act – designed to enhance capital formation for emerging companies – passed in Congress with an overwhelming bipartisan vote. In an Op-Ed appearing in The Hill, BIO President and CEO Jim Greenwood celebrates this anniversary with hopes to build on its success and continue working with Congress to support such sensible policies.
The JOBS Act struck the perfect balance between incentivizing companies to going public and still keeping important investor protections in place. It increased the flow of capital to innovative businesses without a revenue-generating product, yet. This law gave such biotech start-ups the opportunity to save on unnecessary compliance burdens and invest those funds into research and development – making science the priority and new life-saving treatments a reality. As Greenwood summarizes in BIO’s statement released today:
“The extraordinary impact of the JOBS Act shows the dramatic effect that smart policymaking can have on the search for groundbreaking cures and treatments.”
BIO also released new data today showing how the JOBS Act has left a significant impression in the industry after five short years. Here are some highlights that make today’s anniversary worth celebrating:
- Compared to only 55 biotech IPOs just five years prior, there are now an unprecedented 212 biotech IPOs.
- Emerging biotech companies have raised $17 billion through JOBS Act IPOs. As a result, an additional $16 billion was raised through follow-on offerings.
- The FDA has approved 18 new treatments from JOBS Act companies, and an additional 696 therapies are currently in the pipeline.
- Oncology companies make up the largest share of JOBS Act IPOs (25%).
Thanks to the JOBS Act, biotech companies currently employ over 27,000 people and have a market value of more than $111 billion. It is clear that America is the undisputed leader of a global industry transforming medicine, farming, and energy production. We hope Congress builds on the success of the JOBS Act and fosters continued growth of emerging public biotech companies.
Read Greenwood’s full Op-Ed here.
View the infographic summarizing the impact of the JOBS Act on the biotech industry here.