MANUFACTURING & SMALL BUSINESS

 

2008

MDMA Testifies on SBIR Reauthorization
March 13, 2008 - MDMA testified before the House of Representatives Committee on Small Business regarding reauthorization of the Small Business Innovation Research (SBIR) program. MDMA’s testimony focused on the importance the program has had in the development of medical technologies. MDMA also recommended that the reauthorization legislation include changes to current law and regulations including an increase in Phase I and Phase II grant levels and refining the small business ownership definition to include businesses with a majority ownership by venture capital investors.
To read MDMA’s testimony, please click here

 

2007

MDMA Member Company Testifies Before Congress
April 26, 2007 - President and Chief Executive Officer of Synapse Biomedical, Anthony Ignagni, testified before the House Science and Technology Subcommittee on Technology about the ways in which the SBIR program could be more effective in achieving its goals. Specifically, he made three concrete recommendations to improve the program:

  • First, Congress should increase the dollar amount of Phase I and II awards so that they account for an inflationary adjustment as the amount of the awards hasn’t increased since 1992.
  • Further, he articulated the need to provide agencies with more flexibility in administering the SBIR program so that companies could apply for Phase II grants without having to first apply for a Phase I grant.
  • Finally, he strongly encouraged Congress to return to the previous policy (prior to the 2003 rule change) so that majority venture backed companies could re-participate in the program.

Based on these three suggestions, Mr. Ignagni suggested that small business participation in the SBIR program would increase. The Committee seemed very receptive to his testimony and MDMA looks forward to continuing to work with Congress to legislatively fix the problem that majority venture capitol backed companies are experiencing.

 

2006

Action Alert! Urge Congress to Pass Legislation to Reauthorize R&D Tax Credits
September 8, 2006 – As most of you are aware, the R&D Credit expired on December 31, 2005. The National Association of Manufacturers (NAM) has organized a coalition which is sending a letter to congressional leaders urging Congress to send a bill in September to the President with a seamless extension and strengthening of the R&D Credit. MDMA has signed onto the letter and we suggest that each of our member companies do the same. If you would like to add your company/organization to the letter that will be sent to the Congress next week, please click here. The deadline for adding your company’s name to the letter is Tuesday, September 12th.

Senate Small Business and Entrepreneurship Committee Approves Bill to Reauthorize SBIR Program
July 28, 2006 —The Senate Small Business and Entrepreneurship Committee approved the Small Business Administration reauthorization bill. Senator Bond’s amendment allowing majority ventured back companies to participate in up to 25% of the total SBIR Program was approved by voice vote. As you know, MDMA has been working in collaboration with other associations to restore eligibility of small business concerns that are owned in majority part by venture capital companies.

Senate Holds Hearing on Strengthening R&D Grants
July 14, 2006 —The Senate Small Business and Entrepreneurship Committee held a hearing on the “Strengthening Participation of Small Business in Federal Contracting and Innovation Research Programs.” While the current bill reauthorizing the Small Business Administration does not include a provision regarding Small Business Innovation Research (SBIR) grants, the majority of the hearing focused on the SBIR issue. MDMA continues to work with other associations in Washington to get legislation passed allowing majority venture-backed medical device companies to receive SBIR grants.

Proposed Tax Legislation Promotes Medtech Industry Growth
April 21, 2006- Rep. Melissa Hart (R-PA) recently introduced HR 5115, titled the U.S. Healthcare Technologies Competitiveness Act. This legislation seeks to modernize the tax code so that biotechnology and medical device companies can more easily attract and access capital, while making necessary investments in R&D, equipment and innovation. The bill will modernize the tax laws both in the corporate and investor area and eliminate disincentives that inhibit investment in medical technology companies with the intent to keep America competitive in the global arena. "MDMA supports Rep. Hart’s efforts to reform the tax code to make it easier for innovative, entrepreneurial medical device companies to attract the much-needed funding to develop and bring new technology to market," said MDMA Executive Director Mark Leahey. "Helping these companies develop the next-generation products will ultimately improve healthcare for all Americans. We look forward to working with Congress to ensure quick passage of this legislation."

MDMA Urges Sarbanes Exemption for Smaller Companies
April 7, 2006- This week, MDMA, in collaboration with a number of other associations, sent a letter to Chairman Christopher Cox of the Securities and Exchange Commission (SEC) recommending that the SEC expeditiously adopt the recommendations of the Advisory Committee on Small Public Companies and provide Section 404 reforms under the Sarbanes-Oxley Act for microcap and smallcap companies. The current application and implementation of Section 404 to smaller public companies is contrary to the Commission’s guiding principle to achieve the maximum benefit with the least amount of cost and intrusion into corporate decision-making.

Click here to read the letter.


Reps. Poe and Westmoreland Introduce Legislation that would Overturn a Ruling by the Small Business Administration
February 17, 2006 —On the Small Business Innovation Research (SBIR) front, MDMA has been able to make good progress. Two members of Congress – Rep. Ted Poe (R-TX) and Lynn Westmoreland (R-GA) on the Small Business Committee have decided to co-sponsor legislation, HR 2943, introduced by Rep. Sam Graves (R-MO), which would overturn the Small Business Administration’s interpretation of the 51% rule. This rule means that in order to qualify for a SBIR grant, a business must be “small” (fewer than 500 employees) and “at least 51% owned and controlled by one or more individuals.” This interpretation is problematic for many small medical device companies because it precludes companies that are majority owned by venture capital firms from qualifying for SBIR grants. MDMA will continue to work to have this legislation passed by this Congress.


MDMA Meets with Hill Staffers to Discuss Small Business Research Grants (SBIR)
February 10, 2006 —The MDMA continued to meet with congressional staff to discuss the issue of SBIR grants. As you may know, in 2003, the Small Business Administration (SBA) reinterpreted the eligibility requirements for SBIR grants. The SBA’s interpretation was that in order to qualify for a SBIR grant, a business must be “small” (fewer than 500 employees) and “at least 51 percent owned and controlled by one or more individuals.” This interpretation is problematic for many small medical device companies because it precludes companies that are majority owned by venture capital firms from qualifying for SBIR grants. MDMA is part of a coalition that is working with other associations in Washington to fix this problem.

LA Times Covers Recent JAMA Article on the Vendor-Physician Relationship
On January 25, 2006, the L.A. Times published an article on the affect of possible inappropriate relationships between pharmaceutical companies, device manufacturers and physicians. The article was a result of a report released in Wednesday’s issue of the Journal of the American Medical Association (JAMA). Quoted in the L.A. Times article, MDMA Executive Director, Mark Leahey, cautioned against imposing any rules based on treating device and drug makers alike. “Many devices are developed through collaborations between practicing physicians and biomedical engineers,” Leahey told the paper. “The complexity of many devices requires vendors to train doctors who use them. In the device industry, the technologies are advanced and the therapy being delivered has a tremendous amount to do with the physicians’ technique.”

To read the LA Times article, please click here.