Lifesaving, economically critical research is threatened by what’s happening in Washington, D.C.
Doylestown, Pa., Feb. 21, 2025 — Lifesaving research by scientists, doctors and others around our country is being threatened by what’s happening currently in Washington, D.C., say officials of the Hepatitis B Foundation, Baruch S. Blumberg Institute and Pennsylvania Biotechnology Center (PABC).
“Medical research leads to lifesaving breakthroughs that cure cancer and address chronic diseases such as liver disease, diabetes and heart disease,” says Louis P. Kassa III, MPA, chief executive officer of the three organizations and president of the PABC. “Research in fields beyond medicine drives the amazing innovation that powers our nation’s economy, and that’s a big reason why the U.S. economy is the strongest in the world.”
Most of the research being done on a daily basis by scientists in our nation’s universities, nonprofit research institutions and some small companies depends on federal funding, Kassa says. That support is indispensable, so what’s happening in Washington right now threatens the entire research ecosystem in our country.
Based in Doylestown, the Hepatitis B Foundation, Blumberg Institute and PABC are nonprofit
organizations that have been pillars of Pennsylvania and Bucks County for more than 30 years. They operate one of the most successful biotech incubators in the country, leading to $7.3 billion in economic impact for the Commonwealth and County over the past five years.
The Blumberg Institute currently has 11 research grants from the NIH and Department of Defense and a multi-year research contract with the NIH, which provides salary and benefits for 28 scientists and 10 support staff. The Hepatitis B Foundation has grants from the NIH, CDC and FDA. If this federal funding was terminated, the Blumberg Institute and Hepatitis B Foundation could lose nearly $7.5 million in 2025 alone.
“The drastic, arbitrary cut in NIH indirect cost funding that were set to become effective this week would eliminate billions of dollars that support medical and public health research projects nationwide,” Hepatitis B Foundation President Chari A. Cohen, DrPH, MPH, said. “It also would result in thousands of jobs being cut, and we stand to lose an entire generation of the world’s best and brightest scientists.”
The NIH cut in indirect reimbursement rates was temporarily blocked by a federal judge, first in 22 states that signed onto a lawsuit (which did not include Pennsylvania), and later expanded to the entire U.S.
Ju-Tao Guo, MD, the Blumberg Institute’s acting president and chief scientific officer, says: “What’s happening at the NIH is being called an effort to eliminate waste, but reimbursement of research facilities and administrative costs has always been closely monitored by federal officials. It’s important to consider that these costs cover critical research activities such as patient safety, research security and hazardous waste disposal for NIH grants.”
The bottom line is that slashing the reimbursement of research costs will slow and limit medical research, ending progress toward new treatments that millions of patients desperately need and jeopardizing America’s position as the world’s leader in biomedical innovation, in the view of the Hepatitis B Foundation, Blumberg Institute and PABC leadership.
About the Hepatitis B Foundation: As the world’s leading hepatitis B advocacy and research organization, the Hepatitis B Foundation is one of the most active proponents of improving hepatitis B screening, prevention and treatment of the disease. We are the only nonprofit organization solely dedicated to finding a cure for hepatitis B and improving the quality of life for those affected worldwide through research, education and patient advocacy. Founded in 1991, the Hepatitis B Foundation is based in Doylestown, Pa., with staff in Washington, D.C., and Philadelphia. To learn more, go to www.hepb.org, read our blog, follow us on LinkedIn, Twitter, Instagram and Facebook (@hepbfoundation) or contact us through info@hepb.org or 215-489-4900.
About the Baruch S. Blumberg Institute: An independent, nonprofit research organization, the Blumberg Institute was launched in 2003 by the Hepatitis B Foundation to advance its research mission. Today, the Institute is a leading center for translational research in hepatitis B, liver cancer and related diseases. The Blumberg Institute operates in the Pennsylvania Biotechnology Center (PABC), which it manages, in Doylestown, Pa. The Institute also runs a state-of-the-art incubator in Philadelphia, B+labs at Cira Centre, which is a partnership with Brandywine Realty Trust. Visit our website and follow us on LinkedIn and X, @BlumbergInstit1.
About the Pennsylvania Biotechnology Center (PABC): The PABC uses a highly successful services-based approach to nurture and guide its member companies to success, advance biotechnology, maximize synergies among nonprofit scientists and their commercial colleagues. The PABC has nearly 100 member companies and organizations, mostly small to mid-size science, research and pharmaceutical companies. Almost 50 of those companies operate on the Doylestown campus, which is home to the Hepatitis B Foundation and the Blumberg Institute. The PABC also manages B+labs at Cira Centre, a new incubator in Philadelphia, in partnership with Brandywine Realty Trust. PABC companies have produced numerous FDA-approved drugs and medical devices, and a recent study found that the PABC’s economic impact exceeded $7.3 billion and created more than 1,100 new jobs during 2016-2021. Please visit our website and follow us on LinkedIn, Instagram, Twitter (@BiotechnologyPa) and Facebook.