Georgia Governor Seeks to Limit Product Liability Exposure for Biotech Firms

Georgia Governor Sonny Perdue is proposing tort reform legislation intended to protect Georgia-based biotech companies from product liability claims.

The proposed legislation would provide that Federal Drug Administration approval is sufficient to protect against design defect and failure to warn lawsuits.

The tort reform legislation, as proposed, would not apply if the biotech company has defrauded the FDA or the drug or device was used in an off-label manner.

Perdue says he wants to encourage biotech companies to locate in Georgia and support the companies that are currently located in the state.

Georgia’s stake in the biotechnology sector is buoyed by the presence in the state of the Centers for Disease Control and Prevention, the Carter Center, the American Cancer Society and CARE combined with research universities such as Georgia Tech, Emory University and the Medical College of Georgia. In May, Georgia will host the 2009 BIO International Convention for the first time, showcasing the state’s importance in the industry.