341: NIH funding cuts, a U.S. brain drain, and bold claims from AI drug developers
Feb 13, 2025
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Biotech reporter Jonathan Wosen discusses the NIH's significant funding cuts and the looming brain drain that could push young researchers overseas. Health tech reporter Brittany Trang dives into the skeptical reactions towards AI drug developers like Absci and Generate:Biomedicines, who assert they can create drugs from scratch. The conversation sheds light on the potential impact of reduced NIH support on U.S. biomedical innovation and the challenges of relying on AI in drug discovery.
The NIH's funding cuts to overhead costs could severely impact U.S. biomedical innovation and lead to significant financial strain on research institutions.
Skepticism surrounds AI drug developers' claims of revolutionary drug design methods, highlighting potential limitations and concerns about their effectiveness in practical applications.
Deep dives
NIH Funding Cuts and Their Impact
The recent decision by the NIH to cut funding for overhead costs paid to research institutions has sparked significant concerns within the scientific community. This policy change caps indirect costs for research institutions at 15%, while many currently receive 50% to 75%. Experts argue that these indirect costs are crucial for maintaining essential services like facility maintenance and administrative support, and the cuts could lead to financial strain, with some universities potentially losing upwards of $100 million annually. As a result, lawsuits have been filed in response, citing fears that such reductions could cripple biomedical research in the U.S. and potentially lead to a talent drain within the industry.
Skepticism Surrounding AI in Drug Development
Emerging biotech companies like Absci and Generate Biomedicines have made bold claims about their ability to discover new medicines through artificial intelligence. Specifically, they tout a process called 'de novo drug design', which refers to creating drugs from scratch without prior examples. However, experts are skeptical about the practicality of this method, citing concerns that AI cannot generate effective drug designs without established data to train on. Initial drug candidates produced by these companies have raised eyebrows due to their resemblance to existing pharmaceuticals, prompting further scrutiny into whether their technology is as groundbreaking as claimed.
Broader Implications for Academia and Industry
The complications arising from NIH funding cuts may also extend to the biotech industry, which relies on academic research for early-stage discoveries. Analysts point out that if academic labs face research slowdowns, companies that provide instruments and reagents could see their revenues decline as well. Furthermore, academia’s currently disgruntled researchers might pivot to the biotech and pharmaceutical sectors, potentially increasing talent competition but altering the landscape of scientific research. However, the biopharma industry has largely remained silent on this issue, leaving academics to wonder about the industry's commitment to addressing the challenges ahead.
We bring on biotech reporter Jonathan Wosen to discuss the NIH's decision to dramatically cut funding for overhead costs paid to research institutions and the potential implications for U.S. biomedical innovation. We also chat with health tech reporter Brittany Trang about the claims that two drug developers, Absci and Generate:Biomedicines, have made about the capabilities of their artificial intelligence technologies, and why some experts are skeptical.
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