Stewart Lyman's blog in Xconomy does a great job overviewing the benefits that are now available for small biotechs (< 250 staff) under the Therapeutic Tax Credit provision of the new healthcare legislation. Not only did this bill increase the number of insured patients in the US by 32 million, provide a pathway to the registration of biosimilars with 12yr data exclusivity, but it also made $1 B available in tax credits. The vast majority of firms under 250 should be able to qualify for some funding -- if they apply. Stewart terms these provisions a Bonanza! Not a bad adjective for this important legislation for biotech.
On another note, at the end of Stewart's post, he describes new "Sunshine legislation" that will require pharma companies to disclose any payment to a doctor of $10 or more. When I read that, I thought, isn't that threshhold egregiously low? Won't that be a real pain in the backside to comply with? Then Stewart laid this factoid on us - in 2004 - pharma & biotech companies hosted 536,734 dinners for physicians. so what? That amounts to 1,470 physican events per day. The Bureau of Labor Statistics counts only 661,000 MDs in the US. Apparently, drug companies are feeding all of them! Let the Sunshine In!
Posted by Bruce Lehr April 10th 2010.