The NIH is one step closer to be short of $260 million from its 2011 budget

The National Institutes of Health (NIH) 2011 budget will be cut by $260 million in the budget that the House has just passed based on the last minute pact reached last Friday to avoid federal government shut down.

The NIH’s 2011 budget will be $30.7 billion, down 0.8% from its 2010 budget of $30.9 billion, according to news releases that can be found from various sources. Previously, the President proposed a $32.1 billion budget for the NIH and the House of Representatives allocated $29.4 billion to the agency. President Obama asked for a $1 billion increase for the NIH in 2012, which will be in new debate to start immediately. Chances are the 2012 budget for the agency will be less than what the administration wanted.

Combined with “the cliff effect” from the ending of the stimulus money the NIH has epically managed since 2009 to fund extra research projects, the negative growth of the NIH budget could mean less academic positions and tighter lab budgets ahead. Cutting-edge technology and cost effectiveness will be the key for survival of the fittest in the biomedical research jungle.

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Tags: 2011 budget, budget, congressional republicans, federal budget, NIH, President Obama, research budget

State of the Biomedical Research–Not So Good for Pharma R&D

Exerpt from From Science News

Pfizer’s R&D budget, $9.3 billion in 2010, will drop to less than $8.5 billion this year and to between $6.5 billion and $7 billion in 2012, and the company will stop funding research in internal medicine, allergy and respiratory diseases, urology, and tissue repair.

In fact, the pharmaceutical industry as a whole faces financial pressures, as companies are producing fewer new drugs than in the past. In these conditions, even highly promising research has gotten the ax; in November, Roche cut its RNA interference research unit after spending $400 million over 3 years.

Drug companies also seem less wary nowadays about outsourcing. Among other examples, Eli Lilly began outsourcing animal toxicology studies in 2008, and Wyeth (purchased by Pfizer in 2009) began out sourcing data management for its clinical trials in 2003. In 2007, AstraZeneca even decided to move the production of many active pharmaceutical ingredients—perhaps the core activity of a drug company—to China.

These downsizing events are not particularly caused by still depressed economy, they have more to do with industry-specific patent expiration and productivity issues with large pharmas. What does it all mean to current graduate students and postdocs? Perhaps an even tighter job market than now for starting researchers for some years to come until the next round of sea change comes around. Be aware of what’s going on in smaller, more productive, and focused biotech companies.

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Tags: budget, drug market, patent expiration, Pfizer, R&D, RNAi, Roche

Stimulus money at work in labs now

Since signing into law in February, the American Recovery and Reinvestment Act of 2009’s ~10 billion dollar extra funding to the National Institutes of Health has resulted in funding 2,346 projects (or as supplements) so far. There have been several rounds of additional grant applications including the “Challenge” and the “Grant Opportunity” or GO grants, the funding of which will start in the fall. So, if you think you are seeing the leaves on the tree moving, maybe there is a breeze. Better proof for improvement, at least of the mood, of course would be the fact that your PI’s less stiff-looking face when you put in a request for purchasing reagents.

Buzz has it that right now is the hardest time for a postpoc to move on, even though it does not feel that great staying beyond a typical few years in the current lab either. Remember, job market recovery is a delayed action part of any economic recovery. So hold on tight and look ahead.

Companies in the research supply industry, large or small, are inevitably suffering along side with academic labs as well as the drug-aiming biotech industry and R&D centers of pharmaceuticals. Invitrogen (Life Technologies) let go of people in several rounds already. Specialty companies like Glen Research, leading supplier of oligo chemicals, are also shedding employees, it seems. Allele Biotech has not and is not planning to lay off team members, but we have not been able to replace people who recently left or support part-time employees’ level of work as we wanted to.

The ARRA stimulus money through NIH will be a main life line for many of us doing biomedical research in the next few months to a couple of years, depending on how Wall Street and the capital market shape up. The number of grants and total dollars will increase, however slowly it feels. No time to pop the cord yet but at least you can plan on doing that next experiment to get the paper published sooner rather than later, perhaps buying your genotyping kits and miniprep columns from us!

Don’t overlook the deep meaning of Independence Day. Enjoy the day and celebrate our freedom. Happy Independence Day.

Tags: bench work, biomedical job, budget, experiments, funding, graduate students, grants, independence day, July 4th, lower price, NIH, postdoc, researchers, SBIR, wet lab

$6.5 billion more to the NIH

On Feb 3^rd the U.S. Senate agreed to an amendment that would provide an additional $6.5 billion to the National Institutes of Health (NIH) for biomedical research as part of the American Recovery and Reinvestment Act of 2009.

Last week, the House of Representatives and the Senate Appropriations Committee voted for the American Recovery and Reinvestment Act, which included $3.5 billion in supplemental funding for the NIH. The total stimulus package, still being amended in the Senate, is now over $900 billion.

The Senate is still debating the bill and being encouraged to finish it as early as this Friday.

Tags: $6.5 billion, Allele Biotech, billion, biomedical research, budget, funding, grant, NIH, R&D, science budget