It’s Not All About PhRMA: NIH’s Role in R&D

David B. Moore Senior Associate Vice PresidentOffice of Government RelationsJanuary 26, 2006

NIH Has Lost More Than 9% of NIH Has Lost More Than 9% of Purchasing Power Since FY 2003Purchasing Power Since FY 2003

$27.07$27.89

$26.95

$28.42

$26.83

$28.35

$25.43

$28.35

$24.59

$20

$22

$24

$26

$28

$30

Do

llars

in b

illio

ns

2003 2005 2007

Current Constant (BRDPI)

…Four out of 10 voters have never heard of the NIH

61%

46%

31%

70%

13%

27%

15%20%

5%

17%

4%8%

15%

6%

40%

2%

Centers forDisease Control

(CDC)

Food and DrugAdministration

(FDA)

National Institutesof Health

(NIH)

National Institutesof Health

(NIH)

% Favorable % Half and Half % Unfavorable % Never Heard Of

National Congressional

Source: 2004 AAMC Opinion Research Public Opinion Strategies

…Who is most responsible for gains in medical innovation? (June-August 2004)

Voters Congressional Staff

Medical Schools/Teaching Hospitals 37% 28%

Medical laboratories funded by private companies 33% 40%

Federal government funding /NIH 16% 21%

Now, all of these are, of course, important but who or what would you say is most responsible for gains in medical innovation ...

Source: 2004 AAMC Opinion Research Public Opinion Strategies

…Where does the most medical research take place?

(June-August 2004)

Voters Staffers

Medical laboratories funded by private companies 47% 35%

Medical Schools/Teaching Hospitals 33% 18%

The National Institutes of Health 9% 29%

Source: 2004 AAMC Opinion Research Public Opinion Strategies

Plurality of congressional staffers do not know how NIH funds are used to support medical research

40%

19%

41%

Do you think the NIH research budget is primarily used to fund medical research...

Conducted at medical schools and teaching hospitals as well as the NIH's own laboratories

Conducted at NIH's own laboratories

Don't Know

Source: 2004 AAMC Opinion Research Public Opinion Strategies

Keys to Successful Keys to Successful NIH AdvocacyNIH Advocacy

• Focus the message on health

• Work the budget process to increase spending caps

• Involve “non-traditional” advocates

Most Compelling Messages with Most Compelling Messages with Congressional Staff/DC Focus GroupsCongressional Staff/DC Focus Groups

• Medical research discovers new knowledge and treatments that improve health and save lives.

• Medical research is the source of new and better treatments, and even cures, for disease.

• Medical research is transforming medical care.

Least Compelling Messages with Least Compelling Messages with Congressional Staff/DC Focus GroupsCongressional Staff/DC Focus Groups

• Medical Research promotes economic growth and creates U.S. jobs.

• The road to discovery is long and takes years – often decades – to develop.

• Medical research sustains the nation’s global competitive edge.

• Medical research helps contain health care costs.

Budget Process Budget Process

February: President submits budget

March - April: Congress considers budget resolution

May: Appropriators set subcommittee allocations

June - Oct: Appropriations subcommittee consider individual spending bills

Three Questions That Democrats Three Questions That Democrats Must Answer in 110Must Answer in 110thth Congress Congress

1. How large is the pot of discretionary money?

2. How to divide this money among defense, homeland security, and domestic programs?

3. How to divide domestic money among programs (e.g., NIH versus education versus VA healthcare)?

FY 2007 President’s BudgetFY 2007 President’s BudgetTotal Discretionary Spending = $870.7 billion (+3.2%)

46% for “Domestic” Spending = $398.3 billion (-0.5%)

35% for Labor-HHS-Education = $137.8 billion (-2.8%)

18% for NIH = $24.8 billion (0%)

Non-Traditional Advocates Non-Traditional Advocates

• Institutional boards of trustees

• Business and community leaders

• Local and regional newspaper editorial boards

• Service clubs (e.g., Rotary)

• Local and state Chambers of Commerce

• Governors/state legislatures