US TREAT Act poised to revolutionize the biotechnology industry

In recent years, smaller biotechnology companies have received less funding from venture capitalists than in years past. According to the Biotechnology Industry Organization (BIO), roughly 61% of venture capitalists cite the challenging approval process of the Food and Drug Administration as having the largest impact on their investment decisions, noted a report by Five Star Equities.

Recent legislation, dubbed the TREAT Act, introduced by US Senator Kay Hagan, (Democrat, North Carolina), accelerates the review and approval process for medicines that treat an unmet medical need or significantly advance the standard of care for people suffering from deadly diseases. The bill could bring a boost to smaller biotech firms that often struggle to bring drugs to market. However, the legislation, which is now in committee, will likely meet resistance from the Food and Drug Administration.

Act would not alter FDA safety standards