Incubate Responds to Treasury's Proposed Regulations Implementing the COINS Act
WASHINGTON (October 22) -- Today, the U.S. Department of the Treasury proposed regulations implementing the Comprehensive Outbound Investment National Security (COINS) Act. The proposal would restrict certain U.S. investments in Chinese biotechnology companies, including those involved in drug development, genetic sequencing, and biomanufacturing. The rules would affect several forms of investment, including equity investments, certain financing arrangements, and joint ventures.
Incubate's executive director, John Stanford, issued the following statement:
"China's growing biotechnology capabilities should not be ignored. But neither should the regulatory uncertainty and policies that have discouraged innovation here at home. Sweeping restrictions on biotechnology investment and collaboration would risk weakening one of America's most strategically important industries.
"To preserve America's biotechnology leadership, policymakers should prioritize strengthening our own competitive advantages: faster and more efficient clinical trials, a stable and predictable FDA, robust federal research investment, strong intellectual property protections, and an environment where biotechnology companies can build and scale here at home.
"We cannot restrict our way to leadership. We appreciate Treasury's recognition that these restrictions could have unintended consequences for American biotech companies and public health. We look forward to working with the department to ensure the final rules are narrowly tailored to address legitimate national security risks without undermining the investment, collaboration, and innovation that sustain America's leadership in biotechnology."
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About Incubate
Incubate is a 501(c)(4) organization of venture capital firms representing the patient, corporate, and investment communities. Our primary aim is to educate policymakers on the role of venture capital in bringing promising treatments to patients in need.
MEDIA CONTACT:
Katie Lu
(202) 970-9743
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