Georgia Governor Perdue Announces Biotech-Friendly Tort Reform Legislation

Georgia state seal ATLANTA, January 22, 2009 – Georgia Governor Sonny Perdue recently announced he is proposing tort reform legislation that will protect Georgia-based biotech companies from product liability claims. 'With this proposed legislation, we will cement our position as a leader in the biotech industry by enacting laws that respect the role of the federal Food and Drug Administration as the regulator of the safety of drugs and medical devices,' said Governor Perdue at the Georgia Chamber of Commerce's Eggs and Issues breakfast. 'The FDA approval should mean something. It certainly should imply protection from tort lawsuits. The legislation will make Georgia an even more attractive environment for biotechnology companies.' The legislation is intended to encourage biotech companies to locate in Georgia and support the companies that are currently located in the state. In order to qualify for the protection, companies would have to meet the following requirements:

  • manufacture devices or sell pharmaceuticals  base its corporate headquarters in Georgia either employ over 200 workers in manufacturing or research and development or have its principal place of research and development in Georgia.

The proposed legislation will provide that FDA approval is sufficient to protect against design defect and failure to warn lawsuits. Design defect lawsuits are based on the premise that a drug or device is faulty and caused injury, while failure to warn lawsuits maintain that health risks were not sufficiently communicated to doctors and patients. The tort reform legislation, as proposed, will not apply if the biotech company has defrauded the FDA or the drug or device was used in an off-label manner. 'Georgia's stature in the biotech industry is growing, and this legislation will be a key tool in helping us recruit top-flight companies to the state,' said Ken Stewart, commissioner of the Georgia Department of Economic Development. 'Biotech is one of Georgia's strategic industries and provides the high-quality jobs we are focused on growing.' Georgia is becoming a leader in biotechnology, with its broad reserves of talent, global connections, and a collaborative atmosphere that fosters entrepreneurial success. The presence of world-class institutions such as the Centers for Disease Control and Prevention, the Carter Center, the American Cancer Society and CARE combine with top research universities such as Georgia Tech, Emory University and the Medical College of Georgia to make the state a hotbed of research activity. In May, Georgia will host the 2009 BIO International Convention for the first time, showcasing the state's importance in the industry. The Georgia Department of Economic Development (GDEcD) is the state's sales and marketing arm, the lead agency for attracting new business investment, encouraging the expansion of existing industry and small businesses, locating new markets for Georgia products, attracting tourists to Georgia, and promoting the state as a location for film, music and digital entertainment projects, as well as planning and mobilizing state resources for economic development. For more information, visit www.georgia.org and http://www.georgia.org/industries/life-sciences/.com.