Charities Help Drug Companies Finance Research

When they believe that academic research falls short, some nonprofit groups have been giving money to for-profit drug and biotech companies, reports The Wall Street Journal.

This month, the Juvenile Diabetes Research Foundation gave $2-million to MacroGenics, a biotech firm in Rockville, Md., for a clinical trial of an antibody that might slow the progression of Type 1 diabetes.

And the Michael J. Fox Foundation has given $900,000 to Sangamo for gene-regulation research on ways to delay the effects of Parkinson’s disease.

While charities are aware of potential conflicts of interest in giving to for-profit companies, they argue that such support ultimately carries out their missions.

Michael White, a board member of the diabetes charity, told the newspaper, “We debated whether it was right for our money to go to a company that might make a profit. We’re not unconcerned about that. But we’ve invested so much in discovery, what we need now is to take these things to market. We’re taking on the role of ‘venture philanthropists.’”

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