NIH outlays fall, US govt healthcare grants grow but Biopharma financings decline Y/Y
Outlays from the National Institutes of Health (NIH) for December 2022 decreased ~4% Y/Y (-35% versus November 2022), according to report from Baird Equity Research.
December 2022 clinical trials increased ~9% Y/Y (+1% versus November-end 2022), and U.S. government grants grew ~7% Y/Y, but were nearly flat versus November-end 2022 (HHS +6% Y/Y and about flat versus November end).
Baird estimates NIH exposure for tools names as follows: NanoString Technologies (NSTG) ~20%+ Illumina (ILMN) ~20%, Bio-Techne (TECH) ~15%, PerkinElmer (PKI) ~6%, Thermo Fisher Scientific (TMO) ~6%, Avantor (AVTR) ~5%, Agilent Technologies (A) ~1%-2%, Waters (WAT) ~1%.
NIH outlays declined ~4% Y/Y in December (-35% versus November-end), to $3.095B (December 2021 it was $3.213B, ~flat Y/Y), after 35% and 6% Y/Y growth in November and October, respectively.
The report added that Outlays grew ~13% Y/Y in Calendar year 2022 Q4 and ~7% Y/Y in CY2022.
Baird noted that it did not see precise correlation between NIH outlays and quarterly academic/government results, but nonetheless see the consistent increases as thematically positive.
Clinical trials listed on clinicaltrials.gov grew ~1% in December to 437,588 (+9% Y/Y); clinical trials increased ~9.5% Y/Y in 2022, a little below 2021's ~10.2% Y/Y growth.
Illumina has the most clinical trials, at 378, followed by NanoString (NSTG) at 146. Illumina added three trials in December, Thermo Fisher added two, while NanoString and Exact Sciences both added one each.
The fastest-growing keyword Baird searched among clinical trials during December was 'sequencing,' which grew ~1.2% versus November-end (+19% Y/Y, also the largest Y/Y increase), the report added.
As of Jan. 2, 36,605 were funded by the NIH, 134,292 were funded by industry, 8,057 were funded by other U.S. federal agencies, and 262,447 were funded by other sources, according to the report.
As of Jan. 12, there were 8,602 trials related to COVID-19 (January 2: 8,548) and 1,623 suspended trials (January 2: 1,620).
U.S. government grants were about flat compared to November-end (Nov. 30, 2022 - Dec. 30, 2022) and grew ~7% Y/Y. Forecasted and posted grants grew ~5% versus November-end and increased ~7% Y/Y (excluding closed and archived grants).
The fastest-growing keyword Baird searched among grants during December 2022 was 'genomic,' which increased ~1.7% versus November-end (+9.5% Y/Y).
Total HHS grants were nearly flat compared to November end (+6% Y/Y) and forecasted/posted HHS grants grew ~1% versus November-end (+2% Y/Y).
Biopharma financings for full year 2022 declined -49% Y/Y to $60.8B but grew +5% versus 2019.