HOUSE OF REPRESENTATIVES

H.C.R. NO.

281

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

REQUESTING THE DEPARTMENT OF HEALTH AND THE DEPARTMENT OF TAXATION TO SUBMIT PROPOSED LEGISLATION TO ASSIST THE DEVELOPMENT AND TESTING OF A RAPID ELECTROCHEMICAL DETECTION PRODUCT WITH TAX INCENTIVES TO PRIVATE COMPANIES FOR RELATED WORK.

 

 


     WHEREAS, Eurus Genomics, Inc., is a corporation located in Honolulu, Hawaii, with a two-fold mission: 

 

     (1)  To create new medical discoveries through the integration of pharmacogenomics (the combination of pharmacology and genomics to study and understand how a person’s genetic makeup affects the body’s response to a drug) and clinical trials and research; and

 

     (2)  To assist emerging biotechnology efforts and aid in new drug discoveries to be brought to market in the most expeditious manner; and

 

     WHEREAS, Eurus was a co-founder of Antara BioSciences Inc., which was established to address the overwhelming need for efficient, highly sensitive and cost-effective in vitro diagnostics; and

 

     WHEREAS, the role of in vitro diagnostics in modern medicine (the early detection and accurate diagnosis of disease or other medical conditions) continues to increase, however the availability of the necessary technologies has been elusive; and

 

     WHEREAS, Antara BioSciences Inc., has expressed a strong interest in furthering the health care needs of the people of Hawaii as well as assist in the State's efforts to promote economic development in the biotechnology sector; and

 

     WHEREAS, Antara BioSciences Inc., has developed a new diagnostic platform that is readily adaptable to the detection of many types of diseases including cancer and infectious diseases; and

 

     WHEREAS, Antara BioSciences Inc., has invented a novel way to rapidly detect DNA using electrochemical technology, a methodology that is highly sensitive and does not require the need to amplify or label the DNA sample; and

 

     WHEREAS, Antara's invention involves placing a DNA sample on a DNA chip and analyzing it to determine whether or not it binds with the DNA of a particular disease being tested for, such as hepatitis; and

 

     WHEREAS, Antara's invention is the subject of a number of patent applications; and

 

     WHEREAS, Antara BioSciences Inc., has strong ties to the Hawaii community and seeks to provide short- and long-term medical benefits to those Hawaiian residents that need it the most, the low income and rural residents of the State of Hawaii; and

 

     WHEREAS, the nature and magnitude of the problem makes it a challenging task; and

 

     WHEREAS, hepatitis is a serious healthcare problem within  Hawaii, which has the highest rate of liver cancer in the United States due to the high rate of chronic viral hepatitis; and

 

     WHEREAS, there are over 15,000 people that have tested positive for hepatitis C in Hawaii; and

 

     WHEREAS, hepatitis C is also the leading cause of liver transplant in the United States, and many people who are infected with this silent epidemic wait until they feel ill before being tested, when it can be more difficult, extremely expensive, or may even be too late to be treated; and

 

     WHEREAS, early detection of hepatitis provides the ability for infected individuals to begin treatment, with the hope that they can do so before serious additional complications occur, as well as aiding in the prevention of further spread of the disease; and

 

     WHEREAS, low income individuals have an increased risk of contracting hepatitis; and

 

     WHEREAS, the Department of Health currently has a program to screen for hepatitis C in adults who do not have insurance or are unable to receive services through their doctor; and

 

     WHEREAS, the development and testing of the Antara's hepatitis and other diagnostic products would require the approval of the Food and Drug Administration, which would necessitate the use of clinical trials; and

 

     WHEREAS, Antara BioSciences Inc., has expressed its willingness to provide its hepatitis diagnostic test on a voluntary basis to Hawaiian residents at no charge to them, with the data from the proposed testing in turn to be used to support a submission to the Food and Drug Administration for approval of the hepatitis diagnostic test; and

 

     WHEREAS, Antara BioSciences Inc., has proposed that the State of Hawaii establish incentive tax credits of up to $15,000,000 to fund part of the development of a rapid and sensitive test for at least the three most common types of hepatitis (A, B, and C) and preferably also hepatitis D and E, with any development costs exceeding $15,000,000 to be borne by Antara; and

 

     WHEREAS, in return for such a tax credit, Antara BioSciences Inc., has expressed its willingness to share with the State of Hawaii ten per cent of the revenue received from the sale of a Food and Drug Administration approved and commercially marketed product that was developed and tested in the State, with such funds being placed in a trust or a fund to finance health care needs of low income and rural residents of Hawaii; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, the Senate concurring, that the Department of Health and the Department of Taxation are requested to draft legislation to address the goal of assisting in the development and testing of a rapid electrochemical detection product using a methodology that is highly sensitive and does not require the need to amplify or label the DNA sample, and which could be used to rapidly and accurately test for hepatitis and/or other diseases, with appropriate clinical trials of such product to take place in the State of Hawaii; and

 

     BE IT FURTHER RESOLVED that such proposed legislation address and provide for appropriate incentives or other consideration to the developer of such product in return for payments to a trust or fund to finance the health care needs of low income and rural residents of Hawaii; and

 

     BE IT FURTHER RESOLVED that the departments submit proposed legislation to the Legislature no later than twenty days prior to the convening of the Regular Session of 2008; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Health and Director of Taxation.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

Antara Research; Tax Incentives