WASHINGTON, DC – The National Venture Capital Association (NVCA) today thanked Rep. Fred Upton (R-MI), Chairman of the House Energy and Commerce Committee, and Energy and Commerce Committee member Rep. Diana DeGette (D-CO) for releasing a discussion draft of their 21st Century Cures Initiative. The bipartisan proposal will make key changes to regulatory and reimbursement policies that will help encourage investment in medical innovation so that new treatments and cures are available to patients and the U.S. maintains its position as the global leader in medical research and development.
“Long the envy of the world, the U.S. medical innovation ecosystem is at a crossroads. Absent policymakers taking substantive steps to improve the environment for medical development, the U.S. is at risk of losing its foothold as the global leader in medical innovation,” said Bobby Franklin, President and CEO of NVCA. “NVCA believes it is critical that policymakers make substantive regulatory and reimbursement policy reforms to foster an environment that encourages investment in medical start-ups. Central to doing so is updating our regulatory system so that it can keep pace with the changing pace of innovation as well as develop a predictable and transparent reimbursement system that supports the development of innovative medical products.”
“Chairman Upton and Rep. DeGette have presented for consideration a very thoughtful, very detailed legislative proposal that will go a long way in reversing our race towards mediocrity in the field of medical innovation,” added Franklin. “They deserve a tremendous amount of credit for attacking this issue head on and we look forward to working with them and their colleagues as the process unfolds.”
Venture capital is one of the primary forces in translating scientific discoveries into medical advances and remains one of the few sources of capital to fund and nurture small, emerging companies focused on medical innovation. However, venture capital investment in new life sciences companies continues to be under pressure, especially in the medical device and advanced diagnostics sectors. A primary reason for this decline in investment of companies focused on medical innovation is the increased time, cost and uncertainty of developing new drugs, medical devices and advanced diagnostics because of the unpredictability of regulation and the uncertainty of reimbursement policies.
