IV 
114TH CONGRESS 
1ST SESSION 
H. RES. 95 
Recognizing the importance of transformative breakthroughs in biomedicine, 
biotechnology, and life sciences in the diagnosis, management, curing, 
and treatment of illness and the existence of a ‘‘Valley of Death’’ in 
biotechnology and life sciences funding that stifles innovation and im-
pedes translational medical research. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 5, 2015 
Mr. VARGAS submitted the following resolution; which was referred to the 
Committee on Energy and Commerce 
RESOLUTION 
Recognizing the importance of transformative breakthroughs 
in biomedicine, biotechnology, and life sciences in the 
diagnosis, management, curing, and treatment of illness 
and the existence of a ‘‘Valley of Death’’ in biotechnology 
and life sciences funding that stifles innovation and im-
pedes translational medical research. 
Whereas cancer, rare and orphan diseases, diabetes, and Alz-
heimer’s are just a few of a growing number of large- 
scale challenges confronting modern society that can be 
addressed only through the sustained collaboration of 
thousands of highly skilled, dedicated, and independent 
individuals over many years; 
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•HRES 95 IH 
Whereas many promising breakthroughs have occurred in bio-
medicine in recent years, including gene therapies, molec-
ularly targeted drugs, new modes of medical imaging and 
radiosurgery, biomarkers for drug response, human ge-
nome sequencing, and advances in bioinformatics that en-
abled many of these new applications; 
Whereas biomedicine is far more advanced today than even 
a decade ago is indisputable, but breakthroughs require 
years of translational research at a cost of hundreds of 
millions of dollars and have a substantial likelihood of 
failure; 
Whereas the drug development pipeline is laden with unfavor-
able probabilities; 
Whereas for every 5,000 to 10,000 compounds that enter the 
drug discovery pipeline, just 250 progress to preclinical 
development, and only one will become an approved drug; 
Whereas the aggregate research and development budget of 
the pharmaceutical industry has nearly doubled from 
$68,000,000,000 in 2002 to $127,000,000,000 in 2010, 
there has been little appreciable impact on the number of 
new drugs approved; 
Whereas Congress must work in a bipartisan fashion to re-
form the Food and Drug Administration’s (FDA) review 
process for drug development and biomedical innovation 
in order to facilitate expeditious approval of safe and ef-
fective new products, better outcomes for patients, and 
more efficient and effective uses of FDA’s limited re-
sources; 
Whereas biomedical innovation has become much more chal-
lenging to finance with private and public equity; 
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•HRES 95 IH 
Whereas there is a growing concern within and outside the 
industry that the process of translating biomedical re-
search into effective treatments is obsolete; 
Whereas biotech and life sciences traditional financing vehi-
cles of private and public equity are becoming less effec-
tive funding sources because the needs and expectations 
of limited partners and shareholders are not consistent 
with the increasing complexity and risk of biomedical in-
novation; 
Whereas the lengthy process of biomedical innovation is be-
coming increasingly complex, expensive, uncertain, and 
fraught with conflicting motivations and public-policy im-
plications; 
Whereas industry professionals frequently refer to the ‘‘Valley 
of Death’’, a steadily widening funding and resource gap 
that currently exists between basic research and clinical 
development, effectively limiting the field of potential 
novel therapies, technologies, and treatments for patients; 
Whereas the life sciences industry needs novel approaches to 
early-stage drug development that better manage risk, 
lower capital cost, improve research effectiveness, create 
diverse portfolios, leverage risk-tolerant capital, and ac-
cess new capital sources; and 
Whereas innovative financial structures can achieve the nec-
essary grand scale of capital needed to support effective 
diversification of biotech investments and create stable 
and attractive investment opportunities along the devel-
opment pipeline: Now, therefore, be it 
Resolved, That the House of Representatives— 
(1) recognizes the importance of transformative 
breakthroughs in biomedicine, biotechnology, and life 
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•HRES 95 IH 
sciences in the diagnosis, management, curing, and 
treatment of illness; 
(2) recognizes the need for bipartisan reform of 
the Food and Drug Administration (FDA) in order 
to facilitate expeditious approval of safe and effec-
tive new products, better outcomes for patients, and 
more efficient and effective uses of FDA’s limited 
resources; 
(3) recognizes the existence of a ‘‘Valley of 
Death’’ in biomedicine, biotechnology, and life 
sciences funding, a steadily widening funding and re-
source gap that currently exists between basic re-
search and clinical development, effectively limiting 
the field of potential novel therapies and drugs for 
patients; and 
(4) recognizes innovative financial structures 
can achieve the necessary grand scale of capital 
needed to support translational research and devel-
opment in biomedicine, biotechnology, and life 
sciences. 
Æ 
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