✎ Contributed by Ty Griffin
Since January 2025, the National Institutes of Health (NIH) has been under a federal funding freeze imposed by the Trump administration, despite multiple court orders to resume funding. The freeze has led to significant disruptions in biomedical research nationwide, delaying critical studies and clinical trials.
Impact on Major Biotech and Pharma Companies
Several leading pharmaceutical and biotech firms are affected by the uncertainty surrounding federal research grants:
- Moderna Inc. (NASDAQ: MRNA): Trading at $92.54, down 5.12%.
- Pfizer Inc. (NYSE: PFE): Trading at $26.92, up 1.01%.
- Johnson & Johnson (NYSE: JNJ): Trading at $165.02, up 0.78%.
Moderna’s stock took a hit after reports that the Department of Health and Human Services is reevaluating its $590 million contract for a bird flu vaccine. Pfizer and Johnson & Johnson, both heavily involved in NIH-backed drug research, are also assessing the impact of stalled funding.
Biotech Research at Risk
The NIH freeze has put an estimated 16,000 grant applications on hold, totaling around $1.5 billion in funding. Many biotech firms depend on NIH grants to develop new treatments, particularly for rare diseases and early-stage research initiatives.
- Regeneron Pharmaceuticals Inc. (NASDAQ: REGN): Trading at $828.17, down 1.32%.
- Gilead Sciences Inc. (NASDAQ: GILD): Trading at $73.54, down 0.87%.
- Vertex Pharmaceuticals Inc. (NASDAQ: VRTX): Trading at $417.88, up 0.45%.
These companies rely on NIH-funded collaborations to accelerate drug development and clinical trials. With funding uncertainties, delays in approvals and pipeline advancements could follow.
Analyst Insights
Industry analysts warn that the prolonged funding freeze could slow medical advancements and innovation. While large pharmaceutical firms may have the resources to continue independent research, smaller biotech companies and university-led projects could struggle without federal support.
Outlook
The uncertainty surrounding NIH funding could have long-term consequences for biomedical research and pharmaceutical companies. Investors should track policy developments closely, as a resolution to the funding dispute may provide relief for affected firms and researchers.
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