Foreign investment in biotech could get a lot harder

A new proposed federal trade rule could put a damper on overseas investment in U.S. startups — which is causing serious concern in the biotech industry. It puts restrictions on any company that deals with human genetic data, which is basically every biotech working on a novel therapy. 

The rule would mean countless biotechs would have to go through federal review before accepting any non-U.S. investment — which would “threaten to reduce a critical source of capital, the lifeblood of young biotechnology companies,” BIO wrote to the Treasury Department last week. 

Regulators are accepting public comments on the proposed rule through Thursday.

Read more.