Given the significant role of NIH in supporting health research in US universities, the Trump Administration’s proposed 20% cuts in NIH funding may result in : 1) Less support for developing life-saving disease treatments. 2) Reduced funding options for emerging companies. 3) Fewer bioscience jobs

1. NIH SUPPORT OF HEALTH RESEARCH
IN THE STATE OF CALIFORNIA
The Proposed 20% Cuts in NIH Budget May Put
Health Research and Jobs at Risk
Ahmed Enany
President & CEO
SoCalBio

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OVERVIEW
 Given the significant role of NIH in supporting health research in
US universities, the Trump Administration’s proposed 20% cuts in
NIH funding may result in :
 Less support for developing life-saving disease treatments.
 Reduced funding options for emerging companies.
 Fewer bioscience jobs.
 In 2016, NIH allocated $24.83 billion -- out of a $32 billion total
budget -- in extramural research grants.
 With $3.7 billion or 15% of NIH extramural grants, California was
the leading recipient of such funding:
 5,067 researchers in 416 California organizations were funded.
 The bulk of the funding supports basic and applied research at non-
profit educational institutions and research hospitals:
 UCSF, Stanford U., UCSD, UCLA and Scripps are the top five California organizations
attracting $578 million, $427 million, $401 million, $381 million, and $214 million of
NIH award funding respectively.
 NIH funding in the form of SBIRs and STTRS supports emerging
bioscience companies:
 In 2016, California attracted one of every five dollars ($176 million out
of $812 million) awarded by the NIH in the form of SBIR or STTR grants.
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IN 2016, NIH ALLOCATED $24.83 BILLION -- OUT OF A
$32 BILLION TOTAL BUDGET -- IN EXTRAMURAL
RESEARCH GRANTS
 These grants supported:
 49,013 U.S. research projects.
 33,663 principal investigators.
 2,382 Universities, research
hospitals, emerging small
companies engaged in health
R&D.
 The NIH also allocated
$191.72 million to 480 foreign
projects.
 The majority was submitted by
Canadian and European
investigators
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Institute Awards
Funding
$Billion
NIAID 5,254 $3.07
NCI 6,575 $2.94
NHLBI 4,804 $2.45
NIGMS 5,800 $2.32
NIDDK 3,812 $1.54
NINDS 3,716 $1.35
NIA 2,224 $1.25
NIMH 2,872 $1.19
NICHD 2,265 $1.04
NIDA 1,934 $0.82
NCATS 286 $0.55
2016 Top Funding Source

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CALIFORNIA GETS MORE NIH FUNDING THAN ANY OTHER STATE
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4
3.69
2.57
2.2
1.57 1.46
1.15 1.09
0.952
0.818 0.734
0
0.5
1
1.5
2
2.5
3
3.5
4
CA MA NY PA MD NC TX WA IL OH
2016NIHFunding
$Billion

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THE BULK OF NIH FUNDING SUPPORTS RESEARCH AT
UNIVERSITIES AND RESEARCH HOSPITALS
SMALL ALLOCATIONS ARE MADE TO EMERGING COMPANIES IN THE FORM
OF SBIRS AND STTRS
Funding Mechanism CA Awards CA Funding All Funding CA’s Share
RPGs - Non
SBIR/STTR
5,203 $2,598,594,751 $17,137,570,924 15%
RPGs - SBIR/STTR 381 $176,136,281 $812,043,011 22%
Research Centers 240 $385,624,782 $2,642,933,069 15%
Other Research-
Related
948 $295,184,972 $2,091,322,495 14%
R&D Contracts 137 $91,438,716 $1,291,136,757 7%
Training - Individual 518 $24,486,544 $147,564,878 17%
Training -
Institutional
287 $102,836,487 $636,914,717 16%
Other 6 $11,724,056 $73,243,401 16%
Total 7,720 $3,686,026,589 $24,832,729,252 15%
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ResearchAllocations

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THE LOCATION OF 416 CALIFORNIA ORGANIZATIONS
THAT WON $3.7 BILLION IN NIH FUNDING IN 2016
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Greater Los Angeles Region
132 Organizations Attracted
$1.087 Billion
San Diego County
102 Organizations Attracted
$850 Million
San Francisco Bay Area
160 Organizations Attracted
$1.497 Billion
Regional Allocations
Other CA
22 Organizations Attracted
$249.88 Million

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SAN FRANCISCO BAY AREA ORGANIZATIONS THAT WON
NIH GRANTS IN 2016
ORGANIZATION AWARDS
FUNDING
$Million
1 UCSF 1208 577.57
2 STANFORD UNIV. 944 427.01
3 UC BERKELEY 338 125.90
4 KAISER FOUNDATION 73 62.45
5 SRI INTERNATIONAL 83 51.70
6 J. D. GLADSTONE INST. 53 32.74
7 NORTHERN CA INST. 47 27.09
8 LAWRENC BERKELEY LAB 35 22.01
9 PALO ALTO VET. INST. 32 12.61
10 PUBLIC HEALTH INST. 20 11.28
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Top Funding Recipients

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TOP SAN FRANCISCO BAY AREA INVESTIGATORS, BY THE
AMOUNT OF 2016 NIH FUNDING
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NAME:
GRANDIS,
JENNIFER
WHITMER,
RACHEL
HAVLIR, DIANE
GREENBERG,
HARRY
ASHWORTH,
ALAN
AFFILIATION: UCSF
KAISER
FOUNDATION
UCSF
STANFORD
UNIVERSITY
UCSF
# AWARDS: 4 2 3 6 9
FUNDIG
$MILLION:
$19.82 $13.68 $12.39 $10.99 $8.78
FUNDING
FOCUS:
HEAD AND
NICK CANCER &
TRANSLATIONAL
SCIENCE
COGNITIVE
HEALTH
AIDS, MALARIA
AND
ANTIRETROVIRAL
THERAPY
IMMUNITY AND
TRANSLATIONAL
RESEARCH
EDUCATIOM
CANCER
CENTER
SUPPORT
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GREATER LOS ANGELES ORGANIZATIONS THAT WON
NIH GRANTS IN 2016
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ORGANIZATION AWARDS
FUNDING
$Million
1 UCLA 836 381.047
2 USC 411 212.11
3 UCI 301 111.86
4 CALTECH 134 63.09
5 CEDARS-SINAI 107 47.45
6 CITY OF HOPE 91 42.05
7 RAND CORP. 56 26.08
8 UCR 66 20.35
9
CHILDREN'S
HOSPITAL OF LOS
ANGELES
41 20.24
10 UCSB 53 18.29
Top Funding Recipients

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TOP GREATER LOS ANGELES INVESTIGATORS, BY THE
AMOUNT OF 2016 NIH FUNDING
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10
NAME:
MITSUYASU,
RONALD
DUBINETT,
STEVEN
BUCHANAN,
THOMAS
ROTHERAM-
BORUS,
MARY JANE
STERNBERG,
PAUL
AFFILIATION: UCLA UCLA USC UCLA CALTECH
# AWARDS: 1 2 1 8 4
FUNDING
$MILLION:
$21.62 $17.51 $9.56 $7.79 $7.23
FUNDING
FOCUS:
AIDS
LUNG
CANCER
CLINICAL &
TRANSLATIO
NAL
RESEARCH
AIDS & DRUG
OF ABUSE
SYSTEM
BIOLOGY OF
NEMATODES
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SAN DIEGO COUNTY ORGANIZATIONS THAT WON NIH
GRANTS IN 2016
ORGANIZATION AWARDS
FUNDING
$Million
1 UCSD 835 $400.87
2 SCRIPPS 288 $213.69
3
SANFORD
BURNHAM INST
109 $54.24
4 SALK INSTITUTE 65 $32.59
5 LA JOLLA INST 54 $31.70
6
SAN DIEGO STATE
UNIV.
60 $24.60
7 LUDWIG INSTITUTE 22 $9.40
8
VETERANS MEDICAL
RESEARCH FDN/SAN
DIEGO
17 $7.60
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Top Funding Recipients

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TOP SAN DIEGO COUNTY INVESTIGATORS, BY THE
AMOUNT OF 2016 NIH FUNDING
NAME: TOPOL, ERIC
BURTON,
DENNIS
FELDMAN,
HOWARD
FIRESTEIN,
GARY
ULEVITCH,
RICHARD
AFFILIATION: SCRIPPS SCRIPPS UCSD UCSD SCRIPPS
# AWARDS: 5 4 5 3 1
FUNDIG
$MILLION:
$42,499,376 $29,321,475 $10,470,025 $9,111,956 $8,033,507
FUNDING
FOCUS
DIGITAL HEALTH
&
TRANSLATIONAL
SCIENCE
AIDS ALZHEIMER’S
INFLAMMATION
& CLINICAL AND
TRANSLATIONAL
RESEARCH
IMMUNITY &
INFLAMMATION
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12
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DEEP CUTS IN NIH FUNDING PUT HEALTH RESEARCH AND
PATIENT WELFARE AT RISK
 The NIH controls more than 50 percent of all funding for health research,
and 85 percent of all funding for health studies in universities.
 The proposed 20% cut in the NIH budget may negatively impact, not just
life-science research throughout California and elsewhere, but also
patients who are waiting for treatments based on this research.
 Numerous studies have documented the direct and indirect benefits of
public funding of medical research to develop life-saving drugs and
extend life expectancy.
 For example, a 2001 National Bureau of Economic Research (NBER) study
found that of the 21 drugs with the highest therapeutic impact on society
introduced between 1965 and 1992, 14 resulted from key enabling
discoveries funded by public research.
 According to Dr. Randy Hall, Vice Provost for Research at USC, Public
spending on health research have resulted in health improvement and
increased life expectancy by 10% during the last five decades in the US.
 The social value of increases in longevity and health improvements
totaled $95 trillion between 1970 and 2000, according to Research by the
University of Chicago and NBER.
 Steep cuts in NIH Funding may endanger some of these advances.
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BIOSCIENCE JOBS MAY ALSO BE AT RISK
 NIH funding supports bioscience job creation and industry growth
across the country, and California is no different. Cuts in NIH budget
may therefore result in:
 Fewer job opportunities for college graduates and budding PhDs to start
their careers in academia and industry
 NIH-dependent research institutions, such as the USC Keck School of
Medicine in Los Angeles which receives more than 60 percent of its
research funding from competitive NIH grants, are likely to see
significant cuts in research and staffing.
 USC expects 250 researchers to be laid off, if the proposed Trump cuts take
effect.
 These cuts also mean less funding options for bioscience startups
due to expected cuts in SBIR/STTR grant allocations.
 In 2016, 266 California-based emerging bioscience companies were
awarded SBIRs/STTRs totaling $176 million.
 SBIR funding has served as a life boat enabling such emerging companies to
cross the financial “valley of death,” raise capital and grow.
 Cuts in such funding may negatively impact startup growth prospects and
job creation.
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On April 4 & 5, 2017, SoCalBio will join other bioscience
trade associations and hundreds of biotech executives to
meet with legislators in the U.S. Congress during the BIO
Legislative Day in Washington, D.C. The mission of this
legislative day is to advocate for sustaining, if not
increasing, NIH funding and educate law-makers about
The Value of Innovation.
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ABOUT SOCALBIO
 Southern California Biomedical Council
(SoCalBio) is a nonprofit, member-
supported trade association that serves the
biotech, medtech, IVD and digital health
communities in the six counties that
comprise the Greater Los Angeles region
(Los Angeles, Orange, Ventura, Santa
Barbara, Riverside and San Bernardino).
 SoCalBio’s programs help local firms gain
access to capital, potential partners and
other business services. The Council also
promotes technology transfer and
workforce training, while informing policy
makers and the public at-large about the
benefits of the region’s bioscience industry.
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Thank You
Ahmed A. Enany
enany@socalbio.org
Southern California Biomedical Council
Your Success Is Our Business
www.socalbio.org
617 S. Olive St., Ste. 700, Los Angeles, CA 90014
Phn: 800-418-7079 -- Fax: 213-622-7100 -- scbc@socalbio.org