PHILADELPHIA, Jan. 31 /PRNewswire/ -- Funds provided to the Commonwealth
of Pennsylvania by the tobacco Master Settlement Agreement of 1998 and used to
advance medical research throughout Pennsylvania are returning substantial
dividends for the state's economy, according to a new report issued today.
These economic gains are in addition to the anticipated health benefits for
citizens of the Commonwealth from new disease treatments resulting from the
research.
    Of the 46 states that receive funding from the tobacco settlement,
Pennsylvania is among a handful that chose to invest 100 percent of the
proceeds in health-related programs, including 19 percent directed
specifically to medical research through the Commonwealth Universal Research
Enhancement (CURE) program.
    In the four fiscal years since its inception in 2001, the CURE program has
provided $298 million in support for medical research in Pennsylvania. That
figure has resulted in an overall boost to the state's economy of $544
million, a nearly two-to-one return on investment, according to the new
report. The report was produced by the firm of Tripp Umbach for the
Pennsylvania Cancer Alliance, a consortium of the Commonwealth's top cancer
centers, all recipients of CURE funding.
    Additionally, more than 4,000 high-paying jobs were created or sustained
in every sector of the economy through CURE funding, and $32 million in new
tax revenues for the state were generated. The report also found that
recipient institutions were able to successfully leverage the CURE funds to
secure $138 million in new federal medical research funding.
    Extrapolating the economic impact of only the first four years of CURE
funding to 2015, the report estimated that commercialization of supported
medical research would return between $788 million and $2.3 billion annually
to the economy by that year. In turn, this commercialization was predicted to
create or sustain between 6,000 and 18,000 high-paying jobs by 2015. New state
tax revenues would grow to between $49 million and $135 million annually by
2015. Lastly, statewide savings on health-care costs in 2015 resulting from
CURE-funded medical research were projected to be between $158 and $485
million annually.
    In 1998, a lawsuit brought by 46 states against the tobacco companies
resulted in the Master Settlement Agreement. Under the terms of the agreement,
the tobacco industry will pay the states $206 billion over 25 years.
Pennsylvania's share of the agreement is valued at more than $11.2 billion.
    The research and consulting firm of Tripp Umbach, based in Pittsburgh, PA,
has provided more than 100 economic impact studies over the past 10 years to
top academic medical centers and health-care organizations nationwide.
    The Pennsylvania Cancer Alliance is working together to fight cancer in
the Commonwealth of Pennsylvania by pursuing world-class basic and clinical
research to advance the standard of cancer care and improve cancer prevention
statewide. The members of the Alliance are Pennsylvania's leading cancer
centers: Drexel University, Philadelphia; Fox Chase Cancer Center,
Philadelphia; Pennsylvania State University, Hershey; Temple University,
Philadelphia; Thomas Jefferson University, Philadelphia; University of
Pennsylvania, Philadelphia; University of Pittsburgh Cancer Institute,
Pittsburgh; and The Wistar Institute, Philadelphia.

      Contact:  Karen Mallet
                215-514-9751 - cell
                karen.mallet@fccc.edu

Link to this page: