Biotech industry executives are beseeching Congress today (10 Dec) for a temporary change in the tax code that would give some struggling biotech companies a cash boost.

The plan would funnel hundreds of millions of dollars to some biotechs in exchange for tax credits that the companies would not take if they make money next year and beyond.

Nearly a third of publically traded American biotech companies have a six month's or less supply of operating cash, The New York Times reported. The industry would agree to a $30 million cap on the amount any one company can receive.

The lead advocate in the efforts, Biotechnology Industry Organization (BIO), is trying to differentiate the biotech industry from other failing industries seeking bailouts. "This is not a question of our companies operating with what some perceive as a flawed business model," Alan Eisenberg, executive vice president of BIO, told the Times. "This is about our companies taking a decade to get a product on the market, and during that time they need to have investor capital, and that capital is not available."

Last week, 22 British biotech leaders asked the UK government for more than £1 billion ($1.4 billion) to bailout the country's biotech industry.


Related stories:

Bailout for British biotech?
[5 December 2008]

NIH budget bump gets Senate vote
[18November 2008]

Sluggish economy hits biotech
[2 July 2008]