Kendalle Burlin O’Connell, CEO and president of MassBio, today released the following statement after the unilateral and immediate termination of billions of dollars in indirect National Institutes of Health funding:
MassBio was deeply concerned to learn of the recent unilateral and immediate termination of billions of dollars in indirect National Institutes of Health funding for universities, hospitals and other scientific institutions. Setting aside the questionable legality of this policy, if not reversed, it will undermine efforts underway in Massachusetts to develop tomorrow’s innovative therapies and cures and threaten American leadership in biotech.
The innovation ecosystem is crucial to bringing a biopharmaceutical product to market and is composed of three, interrelated parties that interact in collaborative processes to move products from bench to bedside. These parties include: (1) small biotech companies and academia that partner to pursue the underlying research; (2) venture capital firms that invest in the drug development process; and (3) larger pharmaceutical companies that assist in bringing new therapies to patients.
All of these parties are essential components of the drug discovery, development, and commercialization process. However, this ecosystem is fragile and can be significantly disrupted if just one of the parties suffers a setback. The biotech ecosystem in Massachusetts has, to date, thrived due in large part to its leaders in the field in higher education and hospital systems, who have taken part in some of the most groundbreaking research over the years. These organizations rely on federal funding to support both the direct and indirect costs of their research. Sudden and drastic changes in this research funding runs the risk of destabilizing the biotech ecosystem in Massachusetts and across the country with lasting damage.
MassBio thanks Senator Markey and Congressman Auchincloss for reaching out to us on this issue and welcomes the opportunity to share our thoughts with the Trump Administration about ways to make deliberate and meaningful reforms at NIH while preserving the agency’s essential functions.