top of page
Writer's pictureJessie Virga

[Episode 2] The NIH's Role in Drug Development

Updated: Aug 26




Key Points from the Episode


What is the Bayh-Dole Act?

  • The Bayh-Dole Act, passed in 1980, was designed to turn government-funded research into marketable products.

  • It allows universities and small companies to patent and license inventions developed with federal funding.

How Does NIH Funding Work?

  • The NIH invests a significant portion of its budget in medical research.

  • Most of this funding supports external research through competitive grants.

NIH Licensing and Royalties

  • The NIH licenses its patents to private companies.

  • This generates royalties and helps bring new drugs to market.

Comparison of NIH and Industry Spending

  • The NIH's research costs for new drug development are significant and often comparable to industry spending.


Main Questions Raised in the Episode


Does the Bayh-Dole Act Benefit Big Pharma?

  • How does this act allow private companies to profit from publicly funded research?

How Much of NIH Funding Goes to Big Pharma?

  • What percentage of the NIH's budget is funneled to pharmaceutical companies?

Is This System Beneficial for Taxpayers?

  • Do taxpayers end up paying twice for new drugs—once through NIH funding and again through drug purchases?

Incentives in Drug Development

  • Does the current system incentivize the development of treatments for symptoms over cures, thereby benefiting Big Pharma?



Call to Action


Political Engagement

  • Contact your elected officials to demand transparency and accountability in NIH funding and licensing practices.


References

  1. Cleary, E. G., Jackson, M. J., Zhou, E. W., & Ledley, F. D. (2023). Comparison of research spending on new drug approvals by the National Institutes of Health vs the pharmaceutical industry, 2010-2019. JAMA Health Forum, 4(4), e230511. https://doi.org/10.1001/jamahealthforum.2023.0511

  2. General Accountability Office. (2023). Federal research and inventions can contribute to the development of life-saving drugs, vaccines, and medical devices. Retrieved from https://www.gao.gov/products/gao-21-52

  3. National Institutes of Health. (2023). Budget. Retrieved from https://www.nih.gov/about-nih/what-we-do/budget

  4. National Institutes of Health. (2023). History of NIH appropriations. Retrieved from https://officeofbudget.od.nih.gov/approp_hist.html

  5. National Institutes of Health. (2023). NIH funding for research underlying new cancer therapies. Lancet Oncology, 21(6), 755-757. https://doi.org/10.1016/S1470-2045(20)30235-7

  6. Uygur, B., Ferguson, S., & Pollack, M. (2022). Hiding in plain sight: Surprising pharma and biotech connections to NIH’s National Cancer Institute. Journal of Commercial Biotechnology, 27(2), 5-13. https://doi.org/10.5912/jcb1020




1 view0 comments

Recent Posts

See All

Commentaires


bottom of page