90.3 FM in Cleveland, talks with VentureOhio members on possible regulatory changes:
Rahul Aras is CEO of Juventas Therapeutics, a Cleveland biotech firm. Juventas made the front page of the Plain Dealer recently for its developing heart failure treatment, called JVS-100.
Aras says medical progress doesn’t come cheap.
“It’s quite costly,” he says. “We’ve moved the drug through what are called Phase 2 clinical trials. The next step for us is going to be a Phase 3 clinical trial and those can cost upwards of $50 -60 million.”
Aras’s company is a spinout from the Cleveland Clinic, and has done well in its seven years.
But Aras is concerned over the recent activity in Washington. As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the SEC has to revisit the definition of “accredited investor”. Currently, it’s someone with an annual income of $200,000 or with a million dollars in net worth, not counting their home.
The proposed standards would raise the income requirement to nearly half a million dollars, and raise the net worth to $2.5 million.
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