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Home » Innovation » Impact of Frozen Grants on Drug Development: A Deep Dive

Impact of Frozen Grants on Drug Development: A Deep Dive

By Ethan Granger
Published: October 10, 2025
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For many, medications are simply bottles of pills bought from pharmacies, prescribed by doctors, and manufactured by pharmaceutical companies. Yet, the development of drugs used to combat serious illnesses, such as preventing HIV, shrinking tumors, and managing seizures, originates from extensive research conducted in university laboratories. This foundational work now faces a significant threat due to recent funding freezes by the Trump administration.

The administration has halted billions in research grants to various universities, alleging antisemitism and bias unrelated to the research efforts. As a result, some projects are being prematurely terminated and further funding cuts are anticipated, putting the future of essential medication development at risk. While pharmaceutical companies play a critical role in bringing new drugs to market, many of these drugs begin their journey in academic settings, supported by federal funding. A pivotal factor in this ecosystem is the 1980 Bayh-Dole Act, which allows research institutions to patent inventions made with government funds, incentivizing the transformation of basic research into viable medications. Studies have consistently shown the vital role that taxpayer-funded research has on drug development. For instance, one study noted that funding from the National Institutes of Health (NIH) was integral to the approval of 99% of new drugs over a decade.

The Washington Post scrutinized the development histories of six notable drugs created over the years. Each of these medications benefitted from essential steps supported by federal research grants to universities that are currently under threat of losing their funding.

Keytruda

Research pivotal to the creation of Keytruda, the world’s top-selling drug of last year with sales reaching $29.5 billion, was performed at Harvard Medical School. Introduced in 2014, Keytruda is an immunotherapy used to treat various cancers by targeting the PD-1 protein. Dr. James P. Allison of the University of Texas MD Anderson Cancer Center and Dr. Tasuku Honjo from Japan shared the Nobel Prize for their contributions to this cancer treatment modality.

At Harvard, immunologists Arlene Sharpe and Gordon Freeman made groundbreaking discoveries to manipulate the PD-1 pathway, which inhibits the immune response against cancer cells. Their findings stemmed from NIH investments, primarily funneled through its infectious diseases institute. Sharpe remarked, “It goes to show that you never know where fundamental discoveries can take you.” Unfortunately, over $2 billion in federal funding to Harvard was frozen by the Trump administration in April, although recent court rulings have mandated its restoration. Sharpe expressed concern over the challenges posed by this uncertainty.

Lyrica

At Northwestern University, Richard Silverman initiated NIH-sponsored research in the late 1970s aimed at developing an epilepsy treatment. In 1989, Ryszard Andruszkiewicz synthesized a promising molecule in Silverman’s lab, leading to licensing agreements with the pharmaceutical company Parke-Davis, which later became part of Pfizer. Lyrica was approved in 2004, with sales peaking over $5 billion in 2017 before becoming available as a generic drug. It was reported that $13.8 million in NIH funding aided the development of Lyrica, though Northwestern also faced $790 million in frozen federal funding in April. “There needs to be more funds put into research,” Silverman commented, emphasizing the necessity of basic research for significant medical advancements.

Viagra

Louis Ignarro, a pharmacology professor at UCLA, conducted crucial research on nitric oxide in the 1980s, initially for its cardiovascular benefits. His work eventually led to the discovery that the compound significantly impacts male sexual function, prompting Pfizer to pivot from a heart medication to releasing Viagra for erectile dysfunction in 1998. Ignarro, who received the Nobel Prize for his research, noted that Viagra’s sales reached $2 billion in 2012. With more than half a billion in federal funding frozen at UCLA, Ignarro stressed that without adequate funding, groundbreaking research cannot occur. “Without the money, you can’t buy the chemicals, you can’t buy the instrumentation you need to make discoveries,” he stated.

Truvada

At Emory University, researchers Raymond Schinazi, Dennis Liotta, and Woo-Baeg Choi laid the groundwork for Truvada in 1989 by isolating emtricitabine, a compound that inhibits the replication of HIV RNA. This pioneering work was financially supported by the NIH’s National Cooperative Drug Discovery Group during the AIDS crisis. Schinazi reflected on the urgency of their mission, stating, “So many people were dying at the time…government funding was absolutely crucial.” A 2023 Health Affairs study found that 73 federal awards totaling around $143 million directly contributed to Truvada’s development. This medication reached the market in 2004 and saw sales peak at approximately $2.3 billion in 2019, all while Emory faced $92.5 million in canceled federal funding.

Ozempic

The drug Ozempic, known for its role in weight loss, has roots in research conducted at Harvard Medical School. Professor Joel Habener’s 1970s investigations into the hormone glucagon led to the discovery of glucagon-like peptide-1 (GLP-1). NIH grants funded the postdoctoral research pivotal to these findings. Habener remarked on the partnership with the NIH as instrumental for decades in advancing such research. Following ongoing work by Habener’s team and others, GLP-1’s ability to manage Type 2 diabetes was established, contributing to Ozempic’s impressive sales of over $10 billion within the first half of this year. Amidst ongoing legal battles, more than $2 billion in research grants to Harvard were frozen by the Trump administration.

Sovaldi

In the context of hepatitis C, the antiviral drug Sovaldi has emerged as a potential game-changer, thanks in part to taxpayer-funded research at Emory University. Between 1993 and 2007, Emory secured $7.7 million in grants that led to the drug’s creation. Dr. Dennis Liotta, who played a crucial role in these developments, highlighted the importance of sustained medical research funding, stating, “It’s not that I am unique. There’s so much innovation that’s emerged from universities. This is insanity.” The ongoing funding cuts threaten the U.S.’s position as a leader in global biotechnology, casting concern over the future of vital drug innovations.Drugs & Medications

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