May 21, 2010WASHINGTON (AP) -- The Obama administration said Friday it's offering $1 billion in seed money to small research firms in the hunt for promising medical breakthroughs.
Companies working on projects that have "significant potential" to produce new drugs, find a cure for cancer, or address unmet medical needs can apply for up to a $5-million share of the funds. It's limited to firms with 250 workers or fewer, and applications will have to pass review by experts at the National Institutes for Health.
The idea was championed by three Democratic senators -- Max Baucus of Montana, John Kerry of Massachusetts, and Robert Menendez of New Jersey -- and incorporated in President Barack Obama's health care overhaul law.
Administration officials said they expect to receive thousands of applications. Proposals will be accepted from June 21 to July 21, and awards will be announced by Oct. 29. To allow startup companies to participate, applicants can take the money as a grant instead of a tax credit.
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