Nine of Melbourne’s 14 medical research institutes are on track to go broke by 2028-29

The city’s status as Australia’s medical research capital is under threat and most institutes risk going broke unless the gap ­between funding and costs are addressed, according to new modelling.

Melbourne’s status as a global medical research capital is under threat. Picture: Supplied

Most of Victoria’s medical research institutes are on “life support” and risk going broke, threatening crucial breakthroughs and patient access to lifesaving trials.

The Association of Australian Medical Research Institutes Victorian branch has revealed the sector is in crisis in an extraordinary statement, and most of its 14 member organisations are projected to be financially unviable by 2028-29.

Independent modelling commissioned by the branch predicts nine will be facing “financial collapse” by this point, but some will reach this stage “in the coming two years”.

It found the current funding shortfall of $200m was expected to reach $370m over the next five years and warned “many” institutes would simply shut unless the “significant” gap ­between funding and costs was addressed.

Victoria’s medical research sector is in crisis. Picture: Supplied

“Victoria’s position as an Australian and global leader in medical research and innovation, would ultimately be erased,” it said.

The association has called on the state government to urgently provide a yearly $60m boost, saying years of chronic underfunding had failed to cover their work’s true cost.

Victorian branch chairman and Peter MacCallum Cancer Centre Research executive director Ricky Johnstone said while national grant reform was also needed, Victoria’s institutes “could be gone” by the time an Australia-wide strategy was developed.

“It will be too late,” he said.

“If an urgent solution is not reached, we are deeply concerned about significant job losses at our institutes, and major restrictions on early access to lifesaving treatments for Victorians living with deadly diseases such as cancer, diabetes, heart disease and dementia.”

The Herald Sun understands one institute has already slashed 25 jobs this financial year, with a second cutting 10 roles – including six research positions – in 2025 alone.

Unless state funding ­increases, another institute anticipates “dozens” of job losses from July in a move it said would be an “absolute” body blow.

Peter MacCallum Cancer Centre Research executive director Ricky Johnstone says there are concerns about significant job losses. Picture: Luis Enrique Ascui

Professor Johnstone said Victoria’s status as the country’s medical research capital was “without a doubt” under threat.

“There needs to be a realisation that this is so critical at this point,” he said.

He said crucial but indirect costs that federal grants failed to fully cover included legal services to patent their discoveries or cyber security measures to protect patient data.

The Nour report showed some state governments offered their institutes two to three times more funding for these indirect costs than the Victorian government, for the same federal grants.

Professor Johnstone said their work helped current and future patients, giving Victorians early access to lifesaving drugs via clinical trials and working on future breakthroughs, including cancer vaccines and the next MRNA immunisations.

“That’s what’s at stake here,” he said.

Thali Batkilin says she owes her life to medical research. Picture: Wayne Taylor

The association’s local branch represents 14 Victorian institutes including the MCRI, Baker, the Burnet, the Bionics, the Florey, Peter Mac, Olivia Newton-John cancer research, WEHI, Orygen, Hudson and St Vincents. They bring $742.4m to the state’s economy each year and create 28,000 direct jobs.

Melbourne mum Tahli Batkilin said she was one of many people who owed her life to medical research.

She was diagnosed with stage 4 large b-cell lymphoma but said she was given access to a groundbreaking treatment called CAR T-cell therapy in 2021.

“After 30 days I had a scan and the cancer was completely gone,” she said.

“I almost didn’t believe it. My husband’s jaw dropped.

“Still to this day it feels surreal. I can’t actually believe I made it. There were times where I thought, that’s it, I’m definitely not going to survive.”

A state government spokeswoman said it had invested more than $1bn towards medical research in the past decade, “driving growth in the sector, creating jobs and supporting incredible breakthroughs”.

“The Labor government is focused on the long term success of the medical research sector,” he said.

Originally published as Nine of Melbourne’s 14 medical research institutes are on track to go broke by 2028-29