The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Bailout Bonanza!!

bailout-pic1With every industry under the sun seeking bailout money, Biotech is not about to be left out. And with a record number of biotech companies with less than 6 months’ cash in the bank, there is good reason to fear that promising ideas could be lost before the credit markets thaw. There are, however, an abundance of views on what form help for the industry should take.

  • Canada: BIOTECanada asked for a one time cash refund on tax losses, an exemption from capital gains tax on the next two years of investment, and changes to the Scientific Research and Experimental Development (SR&ED) credit program to support the sector during the economic downturn.
  • U.S.: BIO asked for a current NOL deduction in exchange for giving up more deductions later.
  • UK: Investors and bankers asked for two funds with government contributions matched by VCs and other sector investors that would be allocated directly through a 3-level application process to a public-private board.

In the U.S., a number of State-generated proposals have also surfaced including in North Carolina and Maryland, and Massachusetts, which asked for increased NIH funding (as did BIO in November).  In Canada, various Provincial organizations, including TBI, have seconded BIOTECanada’s agenda and are expanding efforts to find complementary approaches.

What do you think? How would you improve the existing proposals? Inclined to a more Darwinian approach? Have you seen other approaches reported? Discuss

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4 responses to “Bailout Bonanza!!

  1. Pingback: Bailout Bedfellows « The Cross-Border Biotech Blog

  2. Pingback: Bailout Update: UK and Canada « The Cross-Border Biotech Blog

  3. Pingback: New Data Shows 70% of Canada’s Biotech Companies Have Under 12 Months’ Cash. BIOTECanada’s New Ask: Government Loans. « The Cross-Border Biotech Blog

  4. Pingback: Québec’s $122 million New Biopharmaceutical Strategy Includes $30 million for Genomics, May Include SR&ED Tax Credit Financing « The Cross-Border Biotech Blog

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