The public benefits of health and The public benefits of health and medical researchmedical research

Professor Warwick Anderson

Chief Executive Officer

NHMRC Act amended 2006

Establishes NHMRC as an independent statutory agency within the health portfolio

(a) To raise the standard of individual and public health throughout Australia

(b) To foster the development of consistent health standards between the various States and Territories

(c) To foster medical research and training and public health research and training throughout Australia; and

(d) To foster consideration of ethical issues relating to health

NHMRC’s Strategic Plan - Parliament

Must contain “the CEO’s assessment of the major national health issues that are likely to arise during the period (of the Strategic Plan)”.

“Highways to Health”

Prevention

Improved delivery of primary,

hospital health care

PROSPERITY

Improving health

globally and regionally

KNOWLEDGE

RESEARCH

New treatments, therapies

IMPROVED INDIVDUAL AND COMMUNITY HEALTH

Innovative industry

development

NHMRC Funding Schemes - NHMRC Funding Schemes - SummarySummary

Support for health and medical Research – •Program Grants•Project Grants •Development awards

Building Australia's Research capacity•People:

•Fellowships• Career Development Awards• Training Fellowships • Scholarships

•Fields•Capacity Building Grants in Population health Research•Capacity Building Grants in Health services Research•Centres of Clinical Research Excellence

•Research Infrastructure:• Infrastructure Grants for Independent Medical Research Institutes• Enabling Grants• Equipment Grants

Grant $ Number

Program Grants $103,319,442 65

Project Grants $281,747,558 1719

Development Grants $3,084,852 36

Priority & Strategic Grants $7,471,287 25

Grants for support of research

27%21%21%22%22%23%23%30%

48%42%

40%36%34%34%36%37%

37%

39%42%

43%41%33%44%

25%

0

400

800

1200

1600

2000

2400

2800

3200

2000 2001 2002 2003 2004 2005 2006 2007

Year of Application

Num

ber o

f app

licat

ions

NHMRC Project GrantsNHMRC Project GrantsMore could be fundedMore could be funded

Fundable, but not funded (score ≥4)

Funded

Not recommended for funding (score <4)

NHMRC research expenditure in 2007

Where the Funding GoesWhere the Funding GoesAdministering InstitutionAdministering Institution

NHMRC Funding to all NHMRC Funding to all Universities (2000 and 2007)Universities (2000 and 2007)

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

Univer

sity

of M

elbou

rne

Univer

sity

of S

ydne

y

Mon

ash

Univer

sity

Univer

sity

of Q

ueen

sland

Univer

sity

of W

este

rn A

ustra

lia

Univer

sity

of N

ew S

outh

Wal

es

Univer

sity

of A

delai

de

Austra

lian

Natio

nal U

nive

rsity

Univer

sity

of N

ewca

stle

Flinde

rs U

niver

sity

La T

robe

Univ

ersit

y

Queen

sland

Uni

vers

ity o

f Tec

hnol

ogy

Griffith

Uni

vers

ity

Curtin

Univ

ersit

y of

Tec

hnolo

gy

Univer

sity

of S

outh

Aus

tralia

Jam

es C

ook U

niver

sity

Deakin

Univ

ersit

y

Univer

sity

of T

echn

ology

Syd

ney

Mur

doch

Uni

vers

ity

Univer

sity

of T

asm

ania

Univer

sity

of W

ollon

gong

Mac

quar

ie U

niver

sity

Edith

Cowan

Univ

ersit

y

Univer

sity

of B

allar

at

Swinbu

rne

Univer

sity

Univer

sity

of C

anbe

rra

Centra

l Que

ensla

nd U

nive

rsity

(CQU)

Austra

lian

Catho

lic U

nive

rsity

Vic

Charle

s Dar

win Uni

vers

ity

Victor

ia Uni

vers

ity o

f Tec

hnolo

gy

Univer

sity

of N

ew E

ngla

nd

Charle

s Stu

rt Uni

vers

ity

Univer

sity

of W

este

rn S

ydne

y

Univer

sity

of S

outh

ern

Queen

sland

2000

2007

NHMRC Funding of top 10 NHMRC Funding of top 10

Institutions - Institutions - 20082008

0

10

20

30

40

50

60

70

80

Uni

Mel

bour

ne Uni

Sydn

ey

Mon

ash UQ

QIM

R

UNSW

Bake

rHe

art

Inst

itute

Uni

Adel

aide UW

A

Wal

ter

and

Eliza

Hall

Inst

itute

Fund

s ($

m)

Top 10 = 66.9% of total funds

Percentage of NHMRC research expenditure to each state and territory 2000 – 2007

Where the Funding Where the Funding GoesGoes

“Highways to Health”

Prevention

Improved delivery of primary,

hospital health care

PROSPERITY

Improving health

globally and regionally

KNOWLEDGE

RESEARCH

New treatments, therapies

IMPROVED INDIVDUAL AND COMMUNITY HEALTH

Innovative industry

development

$0

$30

$60

$90

$120

$150

2000 2001 2002 2003 2004 2005 2006 2007

Mill

ion

s

Asthma*

Arthritis andOsteoporosis*

Cancer *

CardiovascularDisease*

Diabetes*

Injury

Mental Health #

National Health National Health Priority Areas (NHPA)Priority Areas (NHPA)

• NHMRC has a target of allocating 5% of the Medical Research Endowment Account (MREA) to Aboriginal and Torres Strait Islander related research

Aboriginal & Torres Aboriginal & Torres Strait Islander ResearchStrait Islander Research

NHMRC Funding for NHMRC Funding for Indigenous Health Funding Indigenous Health Funding

(2000-2007)(2000-2007)

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

2000 2001 2002 2003 2004 2005 2006 2007

Patents in NHMRC project grant applications (2000 – 2006)

Intellectual PropertyIntellectual Property

A Study of NHMRC A Study of NHMRC final reportsfinal reports

• 1208 final reports from grants that ended in 2003, 2004 and 2005

• With a total value of $460.1 million of NHMRC funding between 1998 and 2005.

• Scholarships, equipment grants and block funding are excluded.

The following slides are an analysis of data received on final reports from NHMRC funded grants. This includes:

Has this research award resulted in the development of Intellectual Property?

Yes 227 19%No 953 79%Not Answered 28 2%Total 1208 100%

Intellectual PropertyIntellectual Property

19%

79%

2%

CommercialisationCommercialisationReported commercial actions arising out of the research includes 29 start up companies, 11 reports of sales of products, and 3 IPO listings.

Commercial Potential Type End year 2003 End year 2004 End year 2005 Grand Total

Patents assigned or licenced 6 26 25 57

Interest from commercial party 4 17 28 49

Development of therapeutic value 2 21 22 45

Start up company formed 2 14 13 29

Interest from the institutions commercial arm 1 11 16 28

Joint ventures with commercial interests 1 11 8 20

Successful clinical trials 0 5 6 11

Development of Scientific Services 0 6 4 10

Sales in products and therapies 0 3 4 7

Revenue generated from royalties 1 3 0 4

IPO Listing 0 1 2 3

Licence options converted 0 2 0 2

Total investment of $460.1 million for 1208 NHMRC grants resulted in leveraged funds of $254.4 million from;

• National sources: $124.1 million

• International sources: $130.3 million

Leverage of National and Leverage of National and International fundsInternational funds

Leverage of National and Leverage of National and International fundsInternational funds

$US31.1 million (10% of total NIH international investment)

New policy and practice focusedNew policy and practice focusedresearch: NHMRC Partnershipsresearch: NHMRC Partnerships

NHMRC Partnerships will focus on informing both policy and practice inhealth. This represents a new focus for the NHMRC in 2008.

The initiative will:• help create partnerships between policy makers, managers, clinicians and

researchers• provide funding and support to create new opportunities for researchers and• policy makers to work together

The aims are to:• Lead to more effective connections between policy makers and researchers• Improve the availability and quality of research evidence to inform policy• Process

NHMRC Partnerships will initially fund two types of awards• NHMRC Partnership Projects (ARC Linkage -like)• NHMRC Partnerships Centres for Research excellence

2005 Nobel Prize WinnersProfessor Barry MarshallProfessor Robin Warren

University of Western Australia

Marshall and Warren shared the Nobel Prize in Physiology or Medicine for their discovery of the Helicobacter pylori and its role in gastritis and peptic ulcer disease.

1996 Nobel Prize WinnerProfessor Peter Doherty

John Curtin School of Medical Research

Professor Doherty received the Nobel Prize for his milestone research into cellular immunology and discovery of how the body's immune system recognises virus-infected cells.

University of Queensland

Honoured as “Australian of the Year” for his groundbreaking work on the development of a vaccine for cervical cancer.

His work will prevent a virus that leads to half a million cases of cancer in women around the world each year, and takes hundreds of thousands of lives.

2006 Australian of the YearProfessor Ian Frazer

NHMRC support :• Development Grants (under review)

• Support Enhancement Options

• Australian success stories: – Cochlear - Total revenue for the year 2006 increased

30% to a record $452.3 million– ResMed - Delivered a record financial performance

achieving $607 million in revenues, an increase of 43% from 2005

– CSL (now with Gardasil!) - Consolidated Group profit for 2007 $539.3 million

Commercial outcomesCommercial outcomes

• Australia’s main public health strategy in reducing the prevalence of dental caries.

• NHMRC has funded evaluative research since the 1980s (validating the safety, optimal levels and cost-effectiveness of water fluoridation)

• For each $1 invested in water fluoridation, estimated savings in dental treatment range from $12.60 to $80.00, with the greatest benefit to the most disadvantaged.

• NHMRC supported research has:– informed public debate, – provided an objective view on costs and benefits, and – provided reports that enable politically challenging policy decisions.

Water Fluoridation

Source: Access Economics, draft Report – Returns to NHMRC funded R&D (2008)

• It is estimated that, in 2008, there will be:– 14,700 hospitalisations– 5,285 deaths

• VET costs $116,970 per case due to lost productivity from premature death.

• Health system expenditure is $10,007 per case.

• NICS developed and implemented the Stop the Clot campaign.

• Savings from the NHMRC component alone would be 5 lives per annum and $1.6 million in savings to the health system.

Venous Thromboembolism

Source: Access Economics, draft Report – Returns to NHMRC funded R&D (2008)

NHMRCNHMRCWorking to build a healthy AustraliaWorking to build a healthy Australia

www.nhmrc.gov.au

• A vaccine against certain types of human papillomavirus.

• Royalties attribution yields a benefit of $63 million per annum to Australia.

• Potential benefits include the saving of 225,000 lives each year worldwide.

• CSL Consolidated Group profit for 2007 = $539.3 million

CSL - Gardasil

Source: Access Economics, draft Report – Returns to NHMRC funded R&D (2008)