CONGRESSMEN BISHOP AND FITZPATRICK INTRODUCE BIPARTISAN BILL TO SUPPORT FDA-CLEARED RESEARCH INTO TREATMENTS AND CURES FOR DISEASE
WASHINGTON –Today, Congressman Sanford D. Bishop, Jr. (D-GA-02), the Ranking Democrat on the U.S. House Appropriations Subcommittee on Agriculture, Rural Development, the Food and Drug Administration (FDA), and Related Agencies, joined Congressman Brian Fitzpatrick (R-PA-01) to introduce the bipartisan Long-term Opportunities for Advancing New Studies (LOANS) for Biomedical Research Act. This innovative legislation would authorize a federally-backed loan program for clinical trials that have received FDA clearance and are focused on finding cures and treatments to diseases affecting millions of Americans, such as cancer, eye diseases, Alzheimer’s Disease, and Parkinson’s Disease.
“Many promising treatments fail to advance to early-stage clinical trials due to a lack of consistent private funding,” said Congressman Bishop. “The LOANS Act will bring more of these treatments to market in a fiscally responsible manner that will benefit Americans now and into the future.”
“More funding is urgently needed for research, treatment, and cures for deadly diseases,” said Congressman Fitzpatrick. “I am proud to join Rep. Bishop, Jr. in introducing the bipartisan LOANS for Biomedical Research Act to promote enhanced prevention and treatment through research with BioBonds investments. This unique funding stream will jumpstart research stalled due to the COVID-19 pandemic. We must do whatever we can to restart these potentially lifesaving clinical trials.”
“We are grateful to Reps. Fitzpatrick and Bishop for co-sponsoring this bill, which has the potential to significantly boost the advancement of therapies for a broad range of diseases and conditions – including blindness, cancer, and diabetes – into and through human studies and out to the millions who desperately need them,” said Jason Menzo, CEO, Foundation Fighting Blindness. “It not only fills a major gap in biomedical research, it does so with minimal impact on taxpayers. That makes the bill a win-win for all Americans.”
The LOANS for Biomedical Research Act would bolster biomedical research with minimal cost to taxpayers by creating a new class of investments called BioBonds. BioBonds are financial instruments comprised of loans to eligible biomedical companies and universities which have received FDA authorization for early-stage clinical trials advancing novel treatments and cures.
The BioBond issuances would be limited to no more than $10 billion per year for three years, backed by federal guarantees to incentivize private investors to enter a field essential to public welfare. The maximum loan amount for a given company would be $25 million to ensure broad access to the loans and diversity in the portfolio. The loans must be repaid, thereby minimizing the burden on taxpayers.
This bill is similar to legislation introduced in the previous Congress which was endorsed by the Alliance for Aging Research; the American College of Rheumatology; Blind Veterans Association; Chroma Foundation; Choroidermia Foundation; Conquering Gyrate Atrophy; Cure CMD; Cystic Fibrosis Research Institute; Diabetes Leadership Council; HOPE in Focus; Juvenile Diabetes Research Foundation; Melanoma Research Alliance; Microbiome Therapeutics Innovation Group; National Alliance for Eye and Vision Research; Oculotherapy; Pulmonary Fibrosis Foundation; the North Carolina Biotechnology Center; and the RYR-I Foundation.
Congressman Bishop had been the sponsor of similar bipartisan legislation in the past to create a five-year, $11 billion pilot program called “Eye Bonds” to offer loans to researchers doing vital research on blindness.
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