Send us a text

Send us a text

Montana's "Right to Try" law, recently expanded by 2025 Senate Bill 535, allows access to experimental treatments that have completed Phase I FDA clinical trials, moving beyond the traditional requirement of terminal illness. The new law establishes a licensing framework for specialized "experimental treatment centers" to provide these therapies and collects 2% of these centers' net profits to fund access for other Montana residents. This expansion aims to increase access but also raises concerns about safety oversight and the potential for adverse events given the limited testing of these drugs. 

Key Aspects of Montana's Right to Try:

• Expanded Eligibility:
• Unlike many Right to Try laws, Montana's statute does not require patients to have a life-threatening illness, allowing access for any condition. 
  
  
  
• Experimental Treatment Centers:
• A licensing system is in place for facilities that specialize in providing these treatments. 
  
  
  
• Funding Mechanism:
• Licensed centers must dedicate 2% of their annual profits to improve access for Montana residents. 
  
  
  
• What Qualifies:
• An "experimental treatment" is an investigational drug, biologic, or device that has successfully completed Phase I of clinical trials but is not yet fully FDA-approved. 
  
  
  

Purpose and Potential Implications:

• Increased Access:
• The law is designed to provide more Montanans with access to new and unproven therapies. 
  
  
  
• Medical Tourism Hub:
• By removing some traditional restrictions, Montana is positioning itself as a destination for patients seeking these treatments. 
  
  
  
• Safety Concerns:
• Critics have raised alarms that allowing treatments after only Phase I trials poses significant risks, as severe side effects may only be discovered in later phases. 
  
  
  
• Regulatory Oversight:
• While a framework for licensed centers is being established, the specific details of safety and reporting mechanisms are still developing. 

Send us a text

Send us a text

From Seed to Sale covers the legal essentials to building a startup. Join us on August 20 from 12:00 to 1:00 pm PST for Part 5, which covers contract law for startups, including basic commercial agreements, regulatory concerns, tax considerations and more. Our speaker is Silicon Valley startup attorney Roger Royse, moderated by Bob Karr of LinkSV.  

Send us a text

We discuss the provisions of OBBBA that most affect startup companies

Send us a text

Send us a text

Send us a text

From Seed to Sale covers the legal essentials to building a startup. Join us on May 21 from 12:00 to 1:00 pm PST for Part 2, which covers capitalization, including founders stock, IP, advisors, early investment, tax considerations and more. Our speaker is Silicon Valley startup attorney Roger Royse, moderated by Bob Karr of LinkSV.  

Send us a text

The Bureau of Economic Analysis (BEA) requires various filings related to foreign direct investment (FDI) in the United States and U.S. investment abroad. Here are some key filings:

• BE-13: Required when a foreign entity acquires at least 10% voting interest in a U.S. business or establishes a new legal entity in the U.S.
• BE-605: A quarterly survey for U.S. affiliates with assets, sales, or net income exceeding $60 million.
• BE-15: An annual survey for U.S. businesses owned or controlled by foreign entities.
• BE-12: A benchmark survey for U.S. businesses with foreign ownership of 10% or more.
• BE-10: A benchmark survey conducted every five years to collect data on U.S. investment in foreign entities.

Each filing has specific deadlines and requirements. You can find more details on the BEA website.

Send us a text

In this episode of the 10,000 Startups podcast, the discussion revolves around the legal troubles that startup companies face, focusing primarily on issues related to due diligence, potential fraud, and the missteps that can lead to significant repercussions during financing or acquisition processes. The guest, Sherine Ebadi, Managing Director of Forensic Investigations and Intelligence at Kroll, shares her insights drawn from years of experience as a forensic investigator and a former FBI agent.

The conversation kicks off by highlighting recent high-profile fraud cases involving startups such as Theranos and FTX. Despite the staggering consequences, the behavior of founders committing such fraud often stems from an exaggerated sense of confidence in their capabilities, which can lead to reckless decisions when facing existential setbacks. Ibadi points out that many founders begin with innovative ideas but may take a downward spiral into unethical practices when encountering challenges.

The discussion then shifts to the importance of due diligence in startups and the preliminary triggers that lead to investigations, such as anomalies in financial records or whistleblower alerts. Ibadi suggests that many startups lack proper financial controls and governance, making them susceptible to fraud. She emphasizes the necessity for startups to establish robust financial frameworks early on, as poor governance can spiral into significant troubles as the company grows.

Moreover, the conversation underscores the crucial aspect of trust and transparency in investor relations. Founders frequently rely on their close circle, including reputable board members, to foster trust among potential investors, which can lead to less scrutiny over financial practices. Understanding the nuances of the business and being able to articulate complexities in simple terms are fundamental in preventing instances of fraud.

Finally, startups and investors alike should discern between legitimate businesses and potential fraudsters by conducting comprehensive due diligence and fostering open communication. Both parties agree that while mistakes can be rectified, once fraud is involved, it can tarnish reputations permanently.