Oct. 5, 2026
Dear Chair Atkins, I am the Chief Financial Officer of Olema Oncology, a Nasdaq-listed clinical-stage biotechnology company. I am writing to urge the Commission to adopt the proposed amendments in File No. S7-2026-18 substantially as proposed, including the increase in the public-float threshold for determining large accelerated filer status from $700 million to $2 billion, along with the resulting Section 404(b) relief for non-accelerated filers. The proposal would provide meaningful cost relief for public companies while preserving important investor safeguards, including management's annual assessment under Section 404(a), financial-statement audits by a registered public accounting firm, and audit committee oversight. The magnitude of the potential relief is material. As of September 30, 2026, there were 420 Nasdaq-listed companies across all industries with market capitalizations between $700 million and $2 billion, including 142 healthcare companies. Olema's internal team estimates that the incremental external annual cost of sustaining Section 404(b) compliance is approximately $300,000 (excluding internal FTE costs). In discussions with other biotechnology CFOs, I have heard estimates of $750,000 annually. These are recurring annual costs, not one-time implementation costs. Using this population as a directional market-capitalization proxy for the proposed public-float range, the potential annual savings could be approximately $126 million to $315 million across all 420 Nasdaq-listed companies, including approximately $43 million to $107 million for the 142 healthcare companies. These are directional estimates: market capitalization is a proxy for public float, and actual eligibility and savings will depend on each issuer's final filer status, reporting history, and audit circumstances. For clinical-stage biotechnology companies, those resources can instead support research and development, clinical execution, and preparation for commercialization-activities that benefit patients, shareholders, and U.S. competitiveness. I would welcome the opportunity to share an issuer's perspective with you or members of your staff and to provide any additional information that would be useful as the Commission considers final action. Sincerely, Jason O'Byrne