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
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
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
National Institutes of Health. (2023). Budget. Retrieved from https://www.nih.gov/about-nih/what-we-do/budget
National Institutes of Health. (2023). History of NIH appropriations. Retrieved from https://officeofbudget.od.nih.gov/approp_hist.html
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
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
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