1. Investment Review of Health & Medical Research Discussion Forum November 2003

2. IRHMR Forums v1 2 Goals for Today Review the context and background of the Investment Review of Health and Medical Research Share some early results and areas of key interest Describe how you can contribute to and help guide the review recommendations

3. IRHMR Forums v1 3 Agenda 1. Background 2. Investment Review Approach –Terms of Reference –Process / Timing –Committee –Consultation 3.Investment Review Focus –Recent Performance –Initial Focus 4. Submissions - How to have your say

4. IRHMR Forums v1 4 1. Background The independent Investment Review of Health and Medical Research was commissioned by the Minister for Health and Aged Care, Hon Tony Abbott It officially began its deliberations on 3rd November The goal of the Review will be to assess how the research sector has performed: –What was the impact of the Wills Review on the Health & Medical Research sector? –Given this, what are other recommendations for improvement in the future?

5. IRHMR Forums v1 5 1.Background The Wills review in 1999/2000 promoted the sustaining cycle of research, government and industry…

6. IRHMR Forums v1 6 1.Background … and provided for a significant increase in research funds NHMRC Grants Expenditure pre- and post-Wills Review: 1996-2003 ($ million) Post Wills Review Source:Office of the NHMRC, A focus on tomorrow’s wellbeing, October 2003

7. IRHMR Forums v1 7 1.Background Research –Increase competitiveness of research funding –Increase size and duration of grants; more Fellowships –Promote critical mass in research institutions and sharing of facilities –Significantly bolster health services and translational research capabilities Government –Increase professionalism and independence of the NHMRC –Increase government investment in health and medical research Industry –Reduce barriers to commercialisation These funds were to support changes in the Australian research environment including:

8. IRHMR Forums v1 8 2.Investment Review Approach Terms of Reference Overview Assess the impact on Australia's health and medical research outcomes resulting from the 1999-2000 Budget initiative to increase National Health and Medical Research Council (NHMRC) funding by $614m to 2005-06 Report on the appropriateness, effectiveness and efficiency of the NHMRC in meeting its objectives and in responding to changed priorities and emerging issues in the Australian research environment Identify possible future directions and priorities in health and medical research in Australia The Terms of Reference have 3 elements

9. IRHMR Forums v1 9 2.Investment Review Approach Process Phase 1: Diagnosis and Preliminary Findings Phase 1: Diagnosis and Preliminary Findings Phase 2: Refine and Structure Phase 2: Refine and Structure Gather data Request submissions Conduct interviews Address fora Present preliminary findings to Minister of Health and Aging Synthesise information Build evidence Develop recommendations and actions Final Report Deliver final report to Minister of Health and Aging 3 rd Nov 2003 11 th Dec 2003 Early Feb 2004 The timeline is demanding

10. IRHMR Forums v1 10 2.Investment Review Approach Committee Mr John Grant (Chairman) - Chairman of Biota Holdings Limited, Ambri Limited and New Zealand Venture Investment Fund Limited Mr Peter Conde ( Deputy Chairman) – Director of the Secretariat for the Wills Review Dr Moira Clay (Member) - President of the Australian Society for Medical Research and Research Program Manager for the National Heart Foundation of Australia Professor John Funder AO (Member) - Professor of Medicine at Monash University, Professorial Fellow at the Centre for Neuroscience, University of Melbourne, and Senior Fellow at Prince Henry's Institute of Medical Research Professor Michael Good (Member) - Director of the Queensland Institute of Medical Research and president of the Association of Australian Medical Research Institutes Professor Michael Vitale (Member) - Professor at the Australian Graduate School of Management in Sydney. Dr Sally Redman (Member) - Formerly chairman of the National Advisory Committee for BreastScreen Australia, and deputy chairman to the Research Committee of the National Health and Medical Research Council; Currently CEO of NSW Institute for Health Research Mr Peter Wills AC (Strategic Adviser) - Executive chairman of CRI Australia. He was the chairman of the 1999 Health and Medical Research Strategic Review and also of that review's implementation committee

11. IRHMR Forums v1 11 2.Investment Review Approach Consultation Submissions: Close on 1 st December; preferably via email or website template - www.irhmr.orgwww.irhmr.org Interviews: As broadly as possible given timeframe; including phone interviews with Australian and international experts; focussing on key issues Forums: One each in Brisbane, Sydney, Melbourne and Adelaide; building awareness of the Review We are using a range of methods to gather input from a wide range of stakeholders

12. IRHMR Forums v1 12 Early Findings Australia continues to ‘punch above its weight’ in health and medical research Share of OECD Life Sciences Research Output in 1999 Note 1:Life Sciences include clinical medicine, biomedical research and biology Sources:Publications: OECD Science, Technology and Industry Scoreboard 2003, p73; GDP: World Bank Data Query, Selected Countries, 1999; OECD Main Economic Indicators, November 2003, p243 30.0 14.6 4.7 6.8 4.7 1.3 Percent of world GDP Percent of OECD Life Sciences 1 Publications Ratio of Life Sciences Publications to GDP

13. IRHMR Forums v1 13 Source:Access Economics, Exceptional Returns: The Value of Investing in Health R&D in Australia, Table 43, p66 3.Investment Review Focus – Recent Performance Return on Research Investment Recent economic analysis show very high returns to health and medical research Rates of Return from R&D (Percent)

14. IRHMR Forums v1 14 Source:MEDLINE, November 2003 3.Investment Review Focus – Recent Performance Research Quality (1) Australian research continues to be of very high quality – and is improving… Australian Visibility in Two Key Journals: The Lancet and New England Journal of Medicine (Percent) Total Articles: # with Australian corresponding author: # per year: 6,123 131 26 5,960 136 34 6,975 196 49 3,339 48 16

15. IRHMR Forums v1 15 Source:MEDLINE, November 2003 3.Investment Review Focus – Recent Performance Research Quality (2) …or even turning around by some measures Australian Visibility in Three Key Journals: Science, Cell and Nature (Percent) Total Articles: # with Australian corresponding author: # per year: 5,094 36 12 7,608 40 10 9,569 99 25 8,971 57 11

16. IRHMR Forums v1 16 Source:Ernst & Young LLP, annual biotechnology industry reports, 1993-2002; 2002 Bio-Industry Review, Australia & New Zealand, Kelvin Hopper and Lyndal Thorburn; miaa.org.au CAGR 92-03 16% 3.Investment Review Focus – Recent Performance Commercialisation Growth in Australian biotech firms has been strong Australian Biotech Companies

17. IRHMR Forums v1 17 3.Investment Review Focus – Recent Performance Implementation of Wills Review Many recommendations have been implemented and produced intended results: –Increasing funding and grant size –Switching from block grants to more contestable funding; restructuring fellowships –Improved environment for commercialisation –Collecting KPIs There are also some areas were actions were not implemented or have not delivered as intended: –The NHMRC governance, CEO’s reporting relationships and funding for its operations –Resourcing of Secretariat is inadequate to fulfil all functions as envisaged –Health services & translational research agenda has not been delivered as intended: funding, capability building, knowledge transfer Implementation of Wills has generally delivered results

18. IRHMR Forums v1 18 3.Investment Review Focus Initial Focus Areas NHMRC: Governance, funding and resourcing Grant allocation: Program grant size and flexibility; research careers including sustainable fellowship scheme; development grants Health services & translational research: Developing research to drive policy and practice to improve health outcomes; involvement of broad stakeholder base Infrastructure funding: Linking infrastructure funding to grants; more consistent approach across Institutions; aligning with State Gov’t funding Barriers to commercialisation: Improving the commercialisation process/incentives/culture; building skills and business expertise Future investment: Setting Government investment benchmarks; leveraging other sources of funds Areas of focus for the review are currently…

19. IRHMR Forums v1 19 4. Submissions The Committee asks you all to spend some time, think about these issues and others that you believe to be crucial, and send a submission to the Review – in groups or as individuals, by the 1st December Submission templates, Review Terms of Reference and other submission details are available at the Review web site www.irhmr.orgwww.irhmr.org We strongly encourage submissions to be sent to the Review