Loss of Tax Incentive for R&D Threatens Biotech Innovation

The challenges faced by Sutro Biopharma underscore the broader impact of reduced R&D tax credits on the entire biopharma sector. With 21% of their budgets allocated to R&D globally, biopharma companies, including Sutro, face obstacles in bringing breakthrough therapies to market.

Bill Newell, CEO of Sutro Biopharma, emphasizes that taxing research funding before generating revenue not only hampers development but also limits the availability of crucial therapies for patients. This issue resonates across the biotech industry, affecting companies of all sizes, as they strive to invest capital into developing new medicines for the benefit of patients.