The National Institutes of Health (NIH) and Centers for Disease Control and Prevention (CDC) raked in millions of dollars from private enterprises during 2020.

NIH and CDC amassed royalties worth a combined $63.4 million in the 2020 financial year (October 2019 to September 2020).

According to Children’s Health Defense (CHD) some of the technology licensing fees collected support each agency’s activities. Another portion goes to researchers who can each receive up to $150,000 a year in so-called “positive incentives.”

CHD President Robert Kennedy, Jr. describes these royalty provisions as “recipes for regulatory corruption.”

A 2015 Associated Press report revealed a high number of NIH scientists consistently failed to report royalty payments they received for clinical trials. They reportedly performed the trials while developing experimental treatments.

One of the scientists who tests “products for which they secretly received royalties” is National Institute of Allergy and Infectious Diseases (NIAID) Director Anthony Fauci. Fauci is also President Joe Biden’s chief medical adviser.

NIH is one of the world’s largest biomedical and public health research agencies, with 27 institutes and centres including NIAID.

NIH has an annual budget of nearly $42 billion and operates a business model, in which it licenses technology to the private sector to commercialise and use its inventions. In exchange NIH collects millions in royalties according to the report.

The Office of Technology Transfer manages all patents and licenses for products developed in laboratories of the NIH, CDC, and U.S. Food and Drug Administration–as mandated by the federal Technology Transfer Act.

The Government Accountability Office (GAO) found NIH does not report which patents are licensed. NIH also does not publish metrics that would inform the general public about how licensing affects patient access to developed drugs.

NIH executed more licences (359) in fiscal 2020 than in any previous period dating back to 1985, when only 25 licences were executed, according to technology transfer statistics.

The GAO report notes NIAID and its Technology Transfer and Intellectual Property Office worked diligently and quickly in 2020. It aimed to facilitate global “sharing” of the NIAID-developed SARS-CoV-2 spike-in proteins and plasmids (molecules encoding spike-in proteins), to spur development of diagnostics, treatments and vaccines for COVID-19.

Off-patent drugs such as ivermectin and hydroxychloroquine, and inexpensive supplements such as vitamin C and vitamin D, are often preventive as well as therapeutic.

However, scientists do not appear to be interested in repurposing drugs and strategies that have already been proven to be effective.

BL understands federal agencies have actively suppressed further research into these supplements because they do not generate high royalty revenue. Agencies only promote capital-intensive experimental vaccines with questionable efficacy and safety.