Biotech companies seek federal assistance
“Change the tax law, please. Biotech companies that aren’t ‘in good shape’ need your money.” That’s basically what the biotech industry leaders have said to the congress yesterday. If they approve it, biotech companies could receive hundred of millions (or even billions) of dollars, and the funds would be used for research.
The whole idea became reality because many biotech businesses (especially the smaller ones) are short on cash while trying to develop drugs. They are forced to let the workers go, close some of their facilities and much more. Some even asked for bankruptcy protection.
Allyson Y. Schwartz, a member of a committee which handles the tax matters said that she would try to push to include the proposal and she thinks that many of her coleagues would agree with her. “Innovation and technology are growth areas for American businesses and American workers and should be part of this package,” said Ms. Schwartz. Barack Obama’s spokeswoman didn’t want to comment on individual proposals.
The biggest biotechnology companies are still safe and sound, but the smaller ones are having problems. Developing a drug can be very time consuming and requires hundreds of millions of dollars. Since the investors became “shy”, many companies have started to drown.
In order to separate themselves from all others that are seeking federal assistance, biotech companies leaders’ main argument is that biotech has the possibility to turn the world around — thus boosting American economy.
Source: nytimes.com/2008/12/10/business/10biobail.html?_r=1
