Cost of Cancer
2020 Annual Report
Cancer Costs the Texas Economy
Texas pays for cancer through reduced annual spending, output losses, and lost jobs attributable to cancer treatment, morbidity and
mortality, and the associated spillover effects. The Perryman Group updated its economic assessment of the annual cost of cancer in Texas and the benefits of CPRIT and its program for fiscal year 2020.
Read the Perryman Group’s Report…
$44.7 Billion
Direct medical costs and morbidity/mortality losses
$115.6 Billion
Total economic losses, including multiplier effects
1.1 Million
Lost jobs, including multiplier effects
FY 2019* Cancer-Related Expenditures in Texas
State Funds Expended by Initiative/Organization
Non-State Funds Expended by Initiative/Organization
* Most recent information available
Economic Impact of CPRIT and Its Programs
Basic medical research is part of society’s essential infrastructure and is valuable to society in large part due to what it facilitates downstream. By enhancing Texas’ cancer research prowess, expanding the life science infrastructure and prevention ecosystem across the state, and accelerating innovative cancer discoveries and prevention strategies, CPRIT has enhanced the health of Texans and the economy at a pace that far exceeds the state’s direct investment.
EVERY DOLLAR INVESTED THROUGH CPRIT RETURNS:*
$25.96
Cost Savings in Treatment and Early Detection
$110.62
Economic Activity (Total Expenditures)
$54.04
Output (Real Gross Product)
$32.36
Personal Income
$14.94
Retail Sales
$2.94
State Tax Receipts
$1.31
Local Government Tax Receipts
*Including initial outlays and downstream effects
Source: The Perryman Group - An Economic Assessment of the Cost of Cancer in Texas and the Benefits of the Cancer Prevention and Research Institute of Texas (CPRIT) and its Programs: 2020 Update
In FY 2020 CPRIT’s operations and grants resulted in:
- $637.8 million in annual gross product, including initial outlays and multiplier effects
- 8,558 jobs created or maintained
CPRIT-funded prevention activities in FY 2020 benefited Texans:
- $359.0 million in direct and secondary output
- 3,496 jobs
- $1 spent on screening and prevention saves $1.86 in direct health spending
The cumulative economic benefit of CPRIT’s work to date includes:
- $31.9 billion in annual spending
- $15.6 billion in annual output
- $10.2 billion in state tax revenue
- $4.5 billion in local government tax revenue
- 151,587 jobs each year
CPRIT’s reauthorization results in net cumulative economic benefits over the next decade:
- $172.9 billion in gross product
- 1,649,870 job-years of employment
- Billions of dollars in state and local government tax receipts
Leveraging Other Sources of Cancer Research and Product Development Funding
In addition to serving as a stable source of cancer research and product development funding, CPRIT’s $2.36 billion invested in cancer research and development position grantees to be more competitive for external funding. These include grants from the National Institutes of Health, Department of Defense, National Science Foundation, the American Cancer Society, and other cancer granting organizations that support scientists at universities and non-profit research organizations. Other sources of financial support for early-stage biotech companies include angel investors, family foundations, venture capital, and federal grants (e.g. the NCI Small Business Innovative Research and Small Business Technology Transfer program).
Examples of CPRIT Investments Catalyzing Additional External Funding:
CPRIT Scholar Vincent Tagliabracci, Ph.D., (RR150033) assistant professor at The University of Texas Southwestern Medical Center, pursued his novel strategy to reduce the risk of breast cancer metastasis using a $200,000 CPRIT High Impact/High Risk Research Award (RP170674) in 2017. Dr. Tagliabracci has since received $4.9 million in other grants to further develop the work originally funded by CPRIT, including a “New Innovator” award from NIH.
CPRIT funding played a very significant role in the success of OncoNano by enabling the stage appropriate development and testing of the technology from initial API and formulation development and Non-Clinical safety and efficacy testing through development of the present-day ONM-100 Drug Product formulation and the initial success from the first-in-human Phase 1 clinical trial.-Ravi Srinivasan, Ph.D.
Founder and CEO, OncoNano Medicine, Inc.
OncoNano received a $6 million CPRIT Product Development award in 2014 (DP140072) and a $10 million award (DP200081) in 2020 to develop ONM-100 to detect breast, head and neck, and skin cancers. In addition, the Southlake-based company received a $15.4 million award in 2019 (DP190066) to develop a novel T-cell activating cancer vaccine for solid tumors. OncoNano has leveraged CPRIT’s investment to raise an additional $57 million in external funding to advance product development
CPRIT funding provided important validation and financial support for the program in advance of establishing clinical proof of concept. This is turn, allowed Molecular Templates to grow the company, hire more people, attract investment, establish partnerships and advance our pipeline of engineered toxin bodies.-Jason Kim
President & Chief Operating Officer, Molecular Templates, Inc.
Molecular Templates received two CPRIT Product Development awards, including a $10.6 million award in 2011 (CC121020) for the development of a novel treatment for Non-Hodgkin Lymphoma and a $15.2 million award in 2016 (DP160071) for the development of a novel drug targeting multiple myeloma. The Austin-based company has leveraged the CPRIT investment to secure an additional $265.6 million in external funding to advance development of its novel therapies.
C. Patrick Reynolds, M.D., Ph.D., director of the Cancer Center at Texas Tech University Health Sciences Center, conducted CPRIT-supported research (RP170510) that developed a new classification for neuroblastoma, a childhood cancer. Dr. Reynolds categorized high-risk neuroblastoma into three subgroups that have substantially different chances of survival. Building off his CPRIT work, Dr. Reynolds secured a $1.7 million NCI grant for a large clinical study of his new clinical risk stratification. Dr. Reynolds’ classifications may improve data analysis in future clinical trials of high-risk neuroblastoma and reduce the intensity of therapy for some patients.
