HARRISBURG: Sen. Tracy Pennycuick (R-24) and Sen. Frank Farry (R-6) introduced legislation (Senate Bill 1285) to provide low-interest loans and loan guarantees for eligible Commonwealth-based biotechnology and medical device projects to assist with FDA-related clinical trials costs.
The proposal would establish the Biobonds Innovation Fund, modeled after the proposed federal LOANS for Biomedical Research Act, to create a self-sustaining revolving fund within the Department of Community and Economic Development designed to strengthen Pennsylvania’s biotechnology and life sciences ecosystem by helping promising medical innovations reach the marketplace.
“Pennsylvania is home to world-class universities, research institutions, and biotech startups. Yet many small and medium-sized companies face a significant financing gap during the most critical and expensive stages of development, FDA clinical trials,” said Pennycuick. “This stage often presents too much risk for traditional private capital, even when the underlying science provides promising potential for public health breakthroughs.”
“The potential return on investment is significant. A single successful breakthrough supported by this program could generate hundreds of millions of dollars in economic activity, create high-quality jobs, and deliver lifesaving treatments to patients, while continuing to position Pennsylvania as a national leader in biomanufacturing and medical innovation”, she added.
“Bio bonds are a competitive tool that help unlock larger funding pools, enabling greater investment in early-stage life sciences while mitigating risk,” said Farry. “Our goal is to keep these companies here in the commonwealth to drive economic development, create jobs, and most importantly advance life-changing breakthroughs that save lives.”
A lack of accessible capital can force companies to relocate out of state, delay or abandon development, or sell intellectual property prematurely. As a result, Pennsylvania loses jobs, economic growth, and the opportunity to solidify its leadership in groundbreaking medical innovation.
Importantly, this program is designed to leverage private capital, not replace it. By serving as cornerstone financing, Biobonds will help de-risk projects and attract additional private investment, multiplying the economic impact of each public dollar.
In addition, the Legislative Budget & Finance Committee would be required to issue a report on the Biobonds Fund to the General Assembly, annually, on all findings and determinations made in carrying out the study.
CONTACT: Lidia Di Fiore (215) 541-2388