Download MARF Presentation

Curing Mesothelioma: Who Will Take The Initiative?
the Mesothelioma Applied Research Foundation, inc.
Our Mission is to eradicate Mesothelioma as a life-ending disease.
Roger G. Worthington
Founding Director
MARF
October 14, 2004
Admiral Elmo Zumwalt, Jr.
U.S. Rep. Bruce F. Vento
Mesothelioma
Applied
Research
Foundation
Steve McQueen
Elizabeth Clancy, age 23
Meso does not respect Fame, Fortune, Power, Rank, Courage or Beauty
To:
From:
Date:
Re:
U.S. Government
U.S. Rep. Bruce Vento
May 10, 2000
“Please fund Meso research at a proportionate level.”
“The Government hasn’t stepped up perhaps
because we want to believe that in a short period of
time, the disease will simply fade away. So, it seems
the cure is avoidance of the asbestos; period. ... To
my colleagues in government, please fund research
for mesothelioma at a proportionate level. Of the
more than 30,000 cancer research grants awarded by
the Federal government since 1987, only 48 grants
even mention mesothelioma.” (a)
U.S. Rep. Bruce F. Vento
October 7, 1940 - October 10, 2000
a Bruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>
Federal Medical Research: The Big Picture
Budgets for National Institutes of Health/National Cancer
Institute
2002 1
2003 2
2004 2


NIH Budget
$23,558,900,000
$27,343,400,000
$27,892,800,000
NCI Budget
$4,113,000,000
$4,593,348,000
$4,736,000,000
The National Institutes of Health (NIH) consists of over 20
funding organizations
The National Cancer Institute (NCI) is funded through the NIH
- Research Project Grants:
- Cancer Prevention and Control:
- Intramural Research:
- Cancer Centers and SPOREs:
- R & D Contracts:
$2 billion
$ .5 billion
$ .69 billion
$ .37 billion
$ .37 billion
NCI Research Budget for Targeted Cancers
2003 4
(in Millions of dollars)
1998 3
AIDS
$225.9
Brain & Central Nerv. Sys. $ 54.3
Breast Cancer
$348.7
Cervical Cancer
$ 58.0
Colorectal Cancer
$121.0
Head and Neck
$ 41.9
Hodgkin's Disease
$ 8.3
Leukemia
$103.4
Liver Cancer
$ 38.1
Lung Cancer
$139.8
Melanoma
$ 50.3
Multiple Myeloma
$ 10.8
Non Hodgkin's Lymphoma $ 57.1
Ovarian Cancer
$ 40.8
Pancreatic Cancer
$ 14.2
Prostate Cancer
$ 86.9
Stomach Cancer
$ 8.2
Uterine Cancer
$ 12.2
1999 3
$239.2
$ 63.5
$387.2
$ 66.3
$152.9
$ 45.9
$ 8.2
$122.2
$ 39.8
$151.0
$ 60.1
$ 15.3
$ 66.2
$ 56.5
$ 17.3
$135.7
$ 7.6
$ 13.8
2000 3
$244.1
$ 71.9
$438.7
$ 67.0
$175.8
$ 47.0
$ 9.4
$141.7
$ 46.2
$175.0
$ 67.9
$ 18.0
$ 70.4
$ 65.5
$ 20.0
$203.2
$ 6.8
$ 16.0
Total NCI
$2,891.00
$3,311.10 $3,753.70 $4,176.70 $4,592.30
$2,551.30
2001 3
$237.8
$ 80.7
$475.2
$ 72.6
$207.4
$ 50.0
$ 10.2
$154.0
$ 54.5
$206.5
$ 71.8
$ 19.7
$ 79.5
$ 76.9
$ 21.8
$258.0
$ 9.0
$ 18.8
2002 3
$254.4
$ 95.2
$522.6
$ 67.6
$245.0
$ 58.9
$ 11.8
$177.2
$ 62.5
$237.5
$ 82.3
$ 20.8
$ 85.6
$ 93.5
$ 33.1
$278.4
$ 11.4
$ 23.1
% Change
Estimate
02-03
$265.0
4.20%
$104.5
9.80%
$564.6
8.00%
$ 71.3
5.50%
$267.0
9.00%
$ 63.8
8.30%
$ 12.8
8.50%
$194.9
10.00%
$ 67.6
8.20%
$256.6
8.00%
$ 90.2
9.60%
$ 21.8
4.80%
$ 92.7
8.30%
$101.0
8.00%
$ 36.5
10.30%
$311.0
11.70%
$ 12.5
9.60%
$ 25.2
9.10%
10.00%
NCI Investment in Mesothelioma





FY2000 Basic - $ 76,000 Clinical - $1,390,000 Total:
FY2001 Basic - $ 362,000 Clinical - $1,326,000 Total:
FY2002 Basic - $ 823,000 Clinical - $1,623,000 Total:
FY2003 Basic - $1,171,000 Clinical - $1,674,000 Total:
Average Yearly Investment (2000-2003): $2.1 million
$1,466,000
$1,688,000
$2,446,000
$2,845,000
The Clinical Budget includes epidemiology and “screening” projects, according to NCI spokesperson
RO1 Research Relevant to Mesothelioma





(a)
SV40 Small-t Antigen and Human Cell Transformation
Molecular Genetic Alterations in Malignant Mesothelioma
SV40 sequences in human tumors: analysis & biologic
Amplification of TRIAL-Induced Apoptosis in Mesothelioma
Targeting BCL-XL Expression in Mesothelioma
a Rick, Weston (NIH/NCI). “Re: MARF/FedFunding Meso Research” Email to Author. 19 Aug. 2004
Correlation Between NCI Funding and Mortality:
A Measure of Priorities?
Incidence (Death) 5
AIDS 6
14,000
Brain & Central Nervous System
13,100
Breast Cancer
40,200
Cervical Cancer
4,100
Colorectal Cancer
57,100
7
Head and Neck
12,000
Hodgkin's Disease
1,300
Leukemia
21,900
Liver Cancer
14,400
Lung Cancer
157,200
Melanoma
7,600
Multiple Myeloma
10,900
Non-Hodgkin's Lymphoma
23,400
Ovarian Cancer
14,300
Pancreatic Cancer
30,000
Prostate Cancer
28,900
Stomach Cancer
57,100
Uterine Cancer
6,800
8
Mesothelioma
3,000
2003 Funding
(millions)
$ 265.0
$ 104.5
$ 564.6
$ 71.3
$ 267.0
$ 63.8
$ 12.8
$ 194.9
$ 67.6
$ 256.6
$ 90.2
$ 21.8
$ 92.7
$ 101.0
$ 36.5
$ 311.0
$ 12.5
$ 25.2
$ 2.8
Ratio
1 / $18,928
1 / $17,340
1 / $9,846
1 / $1,632
1 / $10,761
1 / $3,705
1 / $933
The Phantom Orphan Disease

Request for:
- Proposals for Mesothelioma
- Applications for Mesothelioma
- Information on Mesothelioma
- Zero
- Zero
- Zero

NCI does not code for mesothelioma as one of top 20 human
cancers

Mesothelioma apparently included within “Lung Cancer”

Federal Government required to post grant opportunities, none
using word “mesothelioma.”

Need the NIH to set initiative and solicit grant proposals
(Target MM like AIDS, tobacco, leukemia and related cancers)

Only organization soliciting grant applications for MM: MARF
Targeting AIDS: Once Incurable, Now Treatable
AIDS Funding History 9 ($ in Thousands)
FY
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
NCI
45,050
63,755
89,944
122,247
150,304
160,869
165,668
173,029
212,868
217,430
225,360
224,733
225,991
239,190
244,145
237,789
254,396
263,442
~267,857
~268,126
NIH
134,667
260,907
473,285
627,076
740,509
799,821
1,047,294
1,073,957
1,298,996
1,333,600
1,411,860
1,501,073
1,559,071
1,797,422
2,005,100
2,244,160
2,500,866
2,718,171
2,849,952
2,930,397
TOTAL $3,852,193 $29,308,184
% NCI of NIH
33%
24%
19%
19%
20%
20%
16%
16%
16%
16%
16%
15%
14%
13%
12%
11%
10%
10%
9%
9%
13%
NIH 2005 (est.) HIV Research Budget 9
Epidemiology
$ 288,893,000.00
Etiology/Pathogenesis $ 726,759,000.00
Therapeutics
$ 778,155,000.00
Vaccines
$ 514,620,000.00
Behavioral Science
$ 406,886,000.00
Training/Infrast.
$ 169,056,000.00
Publicity
$ 44,556,000.00
TOTAL:
$2,930,397,000.00
Targeting Consumer/Workplace-Connected
Cancers, Despite Litigation Imbroglio
Tobacco-Cancer Initiatives

$165 million over 7 years in 17 states, funded by NCI and ACS in 1991 10

$76 million: Amount budgeted by NCI for tobacco-related disease research in 1997 11

$80 million: Amount budgeted by NCI for tobacco-related disease research in 1998 11

$552 million budgeted by NIH/NCI in 2004 for tobacco-related cancer research plus 12
$180 million for “Youth and Tobacco” prevention programs

NCI BEGIN MODEL: Behavior, Exposure, Genetics, Intermediate Markers, Neoplasia,
Predict/Improve patient survival 13
Benzene-Leukemia (AML) Initiatives
14

1998: $103.4 million invested by NCI

2003: $200.9 million invested by NCI 14
Mesothelioma: A War-Related Disease Ignored by
Congress

32% of 3,000 Americans diagnosed with mesothelioma served in
the U.S. Navy or worked in Navy shipyard 15

410,000 WWII shipyard workers predicted to die from LC or Meso
by 1980 per AIA Asbestos Cancer Study. 16 4.5 million exposed to
asbestos
- 292,131 combat-related deaths for U.S. soldiers in WWII 17

DVA has medical treatment programs for Agent Orange, Gulf War
syndrome, POWs, radiation-induced cancers. [ Mesothelioma not
presumed to be service-connected, veteran must prove. ]

Recent interest by DVA in a Registry/Database (consulted with
MARF)
Congress Funds DOD Medical Programs for
Prostate, Breast, Ovarian Cancers (1992-2003)
Congressionally Directed Medical Research Programs (CDMRP) (1992-2003) 18
Research Program
FY
Appropriation
Proposals
Received
Proposals
Funded
Amount for
Research
Breast Cancer
Defense Women's Health
Osteoporosis
Neurofibromatosis
Prostate Cancer
Ovarian Cancer
Peer-Reviewed
Medical Research
DOD/VA
Chronic Myelogenous
Leukemia
Prion
Tuberous Sclerosis
Institutionally Based
Programs
TOTALS:
Malignant Mesothelioma
92–02
1995
1995
96–02
97–02
97–02
$1,375.3 M
$ 40.0 M
$
5.0 M
$ 90.3 M
$ 395.0 M
$ 61.7 M
19,840
559
105
299
3,432
575
3,671
69
5
103
797
63
$1,173.8 M
$ 32.8 M
$
3.7 M
$ 77.7 M
$ 341.1 M
$ 52.5 M
99–02
99–00
$ 144.5 M
$
6.8 M
558
88
98
9
$ 116.3 M
$
6.0 M
02–03
2002
2002
$
$
$
9.3 M
42.5 M
1.0 M
48
136
13
10
38
3
$
$
$
95–02
$ 111.3 M
$ 2282.7 M
70
25,723
44
4,910
7.5 M
37.2 M
0.9 M
$ 99.0 M
$1,948.5 M
$ 00.0
Honor AND Serve Our Heroes
“I served my country proudly for 22 years. It is difficult
for me to accept that after all these years my country
has not solved the asbestos cancer menace. When are
we going to finally launch an all-out assault on this
damn tumor that has already taken too many good men
and women down?”
- Don Thorp, Chief Warrant Officer, Ret. US Navy, 1964-1985.
Diagnosed with mesothelioma on December 4, 1999,
underwent pleurectomy on January 25, 2000.
Dr. Robert Cameron performing right
pleural pleurectomy and decortication
on Don Thorp, January 25, 2000. On
Dr. Cameron’s advice, Don requested
Interferon from the Salt Lake City VA in
August of 2002. The VA refused.
Don died on August 16, 2003.
Honoring Heroes Starts with Noticing Them
“National Mesothelioma Awareness Day”
Proposed by Cong. Joe Hoeffel (D-PA), H.Con. Res. 317
Recitals:










Little known about mesothelioma
Caused by asbestos
3,000 Americans die each year
30% exposed on Naval ships and in shipyards
One month exposure can cause meso 30 years later
Asbestos used in "virtually all" offices, schools, homes built before 1975
No specific treatment for meso
Survival rate between 8 and 12 months
Rescue workers at Ground Zero at increased risk
Need to raise public awareness about the prevalence and seriousness of
mesothelioma
Killed in Committee
19
To:
From:
Date:
Re:
Asbestos Defendants
U.S. Rep. Bruce Vento
May 10, 2000
“Now it’s time to help clean up the mess.”
“Asbestos companies have done nothing, even
though it would certainly be in their interest to help
detect and identify a treatment and cure. … I ask
you to take a hard look at your responsibility. The
asbestos industry once touted asbestos as ‘the
magic mineral.’ They were wrong. Many of you
have acknowledged your negligence. Now it’s time
to help clean up the mess. MARF is not about
fixing blame, we want to fix the problem.” (a)
U.S. Rep. Bruce F. Vento
October 7, 1940 - October 10, 2000
a Bruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>
Asbestos Litigation: Mass Tort Marred by Massive
Waste





1940s: mesothelioma discussed in medical literature 20
1960s: first mesothelioma products liability lawsuits
2003: $70 billion transferred in compensation/costs/fees (RAND)
Chapter 11 reorganizations since 2000: 40
Transaction costs exceed victims’ recovery:
CVCSC (36/64) Model
Claimant
36%
Defense
37%
Ridenhour (40/60) Model
Claimant
40%
Defense,
Plaintiff,
Indirect
60%
Plaintiff
27%
Angelina, Michael E. Biggs, Jennifer L., Asbestos Issues
and Trends. 2003 CAS Spring Meeting, May 19,2003
Dickhoff, John J. War-Torn Landscape: The Asbestos
Impact. CVCSC, 1998, Revised July 2001
Ridenour, Amy. National Center for Public Policy
Research. A Federal Asbestos Trust Fund: Better
for Victims, Better for the Economy. National Policy
Analysis #463. April 2003.
Chapter 11 Asbestos Reorganization Costs (20012003) For Six Debtors
21
Company
2001
2002
2003
Yearly
Avg.*
Armstrong World Ind.
Babcock & Wilcox
Federal Mogul
Owens Corning
U.S. Gypsum
W.R. Grace
25.5
0.0
44.8
63.0
14.0
16.6
28.1
86.0
73.1
70.0
22.0
30.6
25.7
39.0
70.4
60.0
19.0
15.4
26.43
41.67
62.77
64.33
18.33
20.87
163.9
309.8
229.5
234.40
Totals
Projected
Total Cost**
$
$
$
$
$
$
145.37M
229.19M
345.24M
353.82M
100.82M
114.79M
$1289.23M
* Number derived by dividing total costs from 2001-2003 by three years.
** Number derived by multiplying average yearly costs by the projected number of years to complete
Chapter 11 reorganization (i.e., 5.5 years). These numbers are of course estimates.
Note: Costs include legal fees, accounting fees, bankers fees and other professional and administrative costs. Data gathered from SEC
filings (Form 10-Q and 10-K) from respective debtor companies. Owens Corning’s costs include payroll and compensation costs related to
Chapter 11 reorganization and other, net costs. Federal Mogul’s costs include employee retention costs and other direct costs. According to
the RAND 2002 Interim Report (Asbestos Litigation Costs and Compensation), no one has ever studied the costs of asbestos bankruptcy
Chapter 11 reorganization (p. 72). RAND notes that the typical cost is 3% of the firms value but asbestos reorganization costs, according to
RAND, should be much higher because of the massive numbers of tort creditors.
Projected Value of 11 Major Asbestos Debtor Trusts
Bankrupt Entity
Date of Filing
A.P. Green Industries
Armstrong World Ind.*
Babcock & Wilcox*
Combustion Eng.
DII Industries (Halliburton)
Federal Mogul*
Kaiser Aluminum
NARCO/Honeywell
Owens Corning*
Pittsburgh Corning
U.S. Gypsum*
W.R. Grace Co.*
TOTALS
02/14/2002
12/06/2000
02/22/2000
02/17/2003
12/16/2003
10/01/2001
06/09/2000
01/04/2002
10/05/2000
04/01/2000
06/25/2001
04/02/2001
Assets
(Billions)
Available
Insurance
(Millions)
Projected
Total Reorg.
Costs
(Millions)
n/a
$ 4.164
$ 0.840
n/a
$ 4.225
$10.15
$ 3.364
$ 1.4
$ 6.494
$ 0.108
$ 3.2
$ 2.493
$36.438B
$ 664
$ 236
$1,015
n/a
$1,600
$ 771
$ 501
$1,400
$ 59
$ 700
$ 76
$ 360
$7,382M
$ 22.55
$ 145.37
$ 229.19
n/a
$ 31.92
$ 345.24
n/a
n/a
$ 353.82
n/a
$ 100.82
$ 114.79
$1,343.67M
Estimated
Trust
Fund
(Billions)
$ 0.05
$ 1.5
$ 1.5
n/a
$ 2.0
$ 2.0
$ 1.0
$ 2.5
$ 3.4
$ 3.0
$ 1.2
$ 1.1
$19.250B
Projected Present Value of All Pending Asbestos Trusts: $65 Billion (a)
* These six debtors have, collectively, almost $30 billion in assets plus roughly $6 billion in insurance available to
pay asbestos claims.
Note: Value of Trust Fund is based on company cash contributions, available insurance, bank notes and the sale of new common stock.
a “Trends In Claims Filing and Asbestos Verdicts," Asbestos, p. 2 (Sept. 2004) (quote from David Austern, Trustee of Manville Personal Injury
Settlement Trust, p. 70)
21
Pink Panther Gives MARF the Pink Slip


In 1999, OCF agreed to serve on MARF’s Board of
Directors
OCF pledged $1 million to MARF, pays $100,000
calling it “sound business”
“This will confirm Owens Corning’s pledge to
MARF of $1,000,000.00 over the next five years. …
We welcome this opportunity to work together on
our common goal of curing mesothelioma…”

11 months later, OCF files Chapter 11 Reorganization,
leaving MARF with an I.O.U for $900,000 while it sets
course to burn through about $350 million in
“professional” fees over the next 5-6 years.
Bankrupt? Sales Strong, Sponsors NASCAR >
NASCAR Primary Sponsor = Visibility on car’s hood >
$6 million to $18 million a season
22
Eagle Motorsports - ‘Earl’ ( 2002)
Sampling of Wealth of 12 Solvent Defendants
Stockholder's Equity
Company
latest fiscal year in billions
Honeywell
$ 10.729
GM
$ 27.773
GE
$ 98.282
Georgia Pacific
$ 5.749
Viacom
$ 63.493
Ford
$ 13.561
Halliburton
$ 1.736
Dow
$ 9.898
Met Life
$ 21.316
MMM
$ 8.457
Owens-Illinois
$ 1.025
Phillips Electronics
$ 16.026
TOTALS:
$278.045
23
Market Cap as of
8/23/04 in billions
$ 30.332
$ 23.352
$343.122
$ 8.576
$ 61.906
$ 25.705
$ 12.491
$ 37.999
$ 27.399
$ 62.851
$ 2.433
$ 30.717
$666.883
RAND estimates that over 6,000 defendants have been sued in asbestos litigation.
To:
From:
Date:
Re:
Trial Lawyers
U.S. Rep. Bruce Vento
May 10, 2000
Your client’s “first priority is life.”
“Billions of dollars have been spent on litigation
since mesothelioma was first reported in the early
1950s – millions on experts who are paid to prove
and deny causation alone. But a pittance has
been spent on finding a cure. …
To the trial lawyers, for both sides, I ask you to
expand your role as advocates. You have done
good work in advocating for your clients, but
every mesothelioma patient’s first priority is life.
He or she wants to live.” (a)
U.S. Rep. Bruce F. Vento
October 7, 1940 - October 10, 2000
a Bruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>
Asbestos Litigation: A Lawyer’s Gold Rush?

Using CVSC model (i.e., 37% to Defense fees; 36% to Plaintiff; and 27% to PI
Lawyer), and assuming $70 billion exchanged hands through 2003, lawyers have
done…very well.
Defense Fees : $25.9 billion
Plaintiffs Fees : $16.9 billion
TOTAL
: $42.8 billion

Projected $100 billion over next decade
Defense Fees : $37 billion
Plaintiffs Fees : $27 billion
TOTAL
: $64 billion

High Hopes (Oct. 7, 1999)
The Enemy Debulked
Projected $130 billion Price Tag over the
next two decades (by Tillinghast-Towers Perrin,
2003)
% Contributions to MARF, 2000-2004
Plaintiffs
: 31% (26)
Plaintiff Lawyers : 40% (27)
Corp. Defendants : 6% (6)
Family/Friends
: 21% (4,472)
Defense Lawyers : 0% (0)
Thankful (Oct. 28, 1999).
Despite aggressive surgery, Hans Hoffacker
passed away several months later. Barbara
Hoffacker donated her entire settlement to MARF.
Sampling of Wealth of Top Asbestos Trial Lawyers
Peter Angelos (MD)
2001 Est. Worth
$319 million
By Jeff Blair. Baseball Reporter. Friday, August 30,
2002 – Print Edition, Page S1
2000 Est. Income
Richard Scruggs (MS)
$29.5 million
Fred Baron (TX)
$21 million
Ron Motley (SC)
$18.75 million
John O'Quinn (TX)
$16.5 million
John Eddie Williams (TX) $16.2 million
Joe Rice* (SC)
$15 million
Walter Umphrey (TX)
$12.5 million
Wayne Reaud (TX)
$12.5 million
Harold Nix (TX)
$10 million
“Killer Lawyers,” Forbes, May 14, 2001, pp. 134-136
* Motley Rice (formerly Ness Motley) have represented over 96,000
asbestos plaintiffs since the 1980s. Rice and Motley helped
engineer the $246 billion tobacco settlement, earning fees
between $2 and $3 billion.
To:
From:
Date:
Re:
Drug/Bio Tech Companies
U.S. Rep. Bruce Vento
May 10, 2000
“Solving Meso’s Mysteries can help cure other cancers.”
“Drug companies won’t invest money to find
a cure because “only” 3-4,000 Americans are
diagnosed annually. … To members of the
drug and biotech industry, please help. Since
this tumor is a microcosm of many solid
tumors, every dollar spent to solve its
mysteries could potentially help cure other
forms of cancer – prostate, lung and breast
cancers.” (a)
U.S. Rep. Bruce F. Vento
October 7, 1940 - October 10, 2000
a Bruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>
Drug Company Investment in Treatment: The
Bottom Line

Average Cost to Develop New Cancer Drugs in U.S. 24
- $800 million -- $1 billion
- 50% increase in costs over last 10 years
- 15 years ago, approx. 20 cancer drugs in trial, today over 400

Eli Lilly: Alimta FDA approved in 2004 25
- Estimated R&D cost since 1983 : $1 billion
- Alimta recently FDA approved for NSCLC
- Lilly predicts $1 billion in sales per year in next 3-4 years
- FDA approval for pancreatic, colon and breast cancer next?

Drug Companies in 2004 invested $33.3 billion on R & D for new drugs,
more than NIH budget for same year, i.e., $27.8 billion (per PhRMA)

15+ years to develop preventive drugs/vaccines at increasing cost (Cox
II inhibitors and statin drugs not FDA approved for MM prevention or
treatment)
To:
From:
Date:
Re:
MARF
U.S. Rep. Bruce Vento
May 10, 2000
Meso “patients need advocates in the labs and in Congress.”
“Meso patients have advocates in the
courtroom. They also need advocates in the
laboratories and in the corridors of congress
where some cancer research money is
allocated. AIDS, breast and prostate cancer
all have their advocacy groups. MARF
should fill the void for mesothelioma
patients.” (a)
U.S. Rep. Bruce F. Vento
October 7, 1940 - October 10, 2000
a Bruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>
MARF: Good Start

15 research grants funded, $1.3 million (detection/treatment/cure)

Ban Asbestos in America Act (SB 1115) 26
- $140 Million Meso Research & Treatment Program
- $2.5 million per year for 10 centers of Merit each
- Admiral Elmo Zumwalt Mesothelioma Registry
- Bruce Vento Tissue Bank
- Medical training, education, web resource,
annual symposium

Fairness in Asbestos Injury Resolution Act (SB 2290)
- Dr. Frist rejects most of MARF proposal
- Allows $10 million per year for 10 centers of MERIT
Admiral Elmo Zumwalt, Jr.
November 29, 1920 – January 2, 2000
Fixing The Problem
1. Allocate Percentage of Asbestos Debtor Trust to MARF
 Trustee has duty of care, loyalty and good faith towards claimants/future
claimants
 Claimants deserve compensation and best efforts to reduce
epidemic/prolong life/ameliorate suffering
 Enormous Cash Pool: Big Ten Value @ 20 Billion Aggregate Present
Value of All Debtors at $65 billion (per MPIST)
 Current Asbestos Trusts valued between $4 -- $8 billion
 1% allocation from overall future Trusts to research: $650 million
 MARF urging trial lawyers on creditors committees to advocate for
providential change to remedies paradigm
2. Congressionally Directed Medical Research Program for Meso
 MM for Navy Vets/SY workers is “war-related disease.”
 Direct appropriation to DOD/DVA in collaboration with Asbestos Czar
from MARF
 Competitive peer-reviewed, targeted grants, randomized/blind trials
recruitment, clinical database, tissue bank, SPOREs type collaboration.
 Modeled after DOD CDMRPs for Breast Cancer (est. $1.5+ billion) and
prostate cancer ($500+ million)
Fixing The Problem
3. Tax on Sale of Asbestos-Containing Products






25% cancer prevention tax, revenue held in trust for medical research
100% of ACPs in U.S. today from Canada
2002: 6,850 metric tons consumed in U.S.
2003: 4,650 metric tons consumed in U.S.
$290 million: value of manufactured ACPs (roofing products, friction products, gaskets, other)
Tax revenue: $72.5 million annually (based on 25% cancer tax)
4. Federal Compensation Trust Fund: Meso Research & Treatment Program





Estimated $140 billion to $156 billion over 27 years
“$140M in a $140B is nothing” – Senator Hatch’s Office
1-2% of value, payable yearly
MARF Proposed $140 million MRTP (Ban Asbestos Act)
- 10 centers of excellence
- Zumwalt Registry/Vento Tissue Bank
- Public awareness, medical training, symposium, web resources
FAIR Act (SB. 2290): $10 million for five years for Centers of Excellence
5. NIH Funding Proportionate to Risks/Incidence/Death



2000 to 2003, NCI spent $8.4 million: <%.1 of NCI's budget for all cancer research
Fund MM research proportionate to other cancers (e.g. cervical cancer)
Targeted RFAs, Catalyst for Cure, Asbestos Czar, Roadmap Initiatives
Fixing The Problem
6. Surcharge on Asbestos Third Party Settlements






1-2% of settlement paid by settling defendant
Polls: survey shows patients willing to match lawyers % contribution
2001: $1.7 Billion Paid by Mftrs/Insurance
1% surcharge: $17 million
2% surcharge: $34 million
Revenue held in Trust by MARF for peer review grant system
Surcharge on plaintiffs attorneys fees
Mechanism for plaintiff voluntarily contributing % of compensation
7. Private (Voluntary) Sources







Trial lawyers (give something back; survival primary)
Corporate defendants (clean up your mess, close Pandora's box, sound
business)
Drug companies (broad application other solid tumors)
Asbestos exposed/injured (survival/prevention)
Labor unions (monitoring)
Testifying Professional Experts
Charitable donations patients/families
“Send Lawyers, Guns and Money…”
The Mesothelioma epidemic has hit the fan
January 24, 1947 - September 7, 2003
Give Hope to Mesothelioma Patients
“MARF is here to begin a new chapter. We believe that mesothelioma can be
cured, if we are committed, if we mobilize, if we apply our collective brains
and strength. … Every single day a patient lives, hope remains that a cure can
be found. If we know that our best and brightest are working on fixing the
problem, we’ll have greater reason – greater hope – to continue the fight.” (a)
a Bruce Vento, MARF Speech, May 10, 2000 <http://www.marf.org>
the Mesothelioma Applied Research Foundation, inc.
Our Mission is to eradicate Mesothelioma as a life-ending disease.
Roger G. Worthington
Founding Director
MARF
October 14, 2004
References
1 U.S. Department of Health and Human Services, FY 2004 Budget in Brief, NIH Overview by Institute (p. 30),
<http://www.hhs.gov/budget/04budget/fy2004bib.pdf>
2 U.S. Department of Health and Human Services, Budget in Brief FY 2005, NIH Overview by Institute (p. 34),
<http://www.hhs.gov/budget/05budget/fy2005bibfinal.pdf>
3 U.S. Department of Health and Human Services. Public Health Service. National Cancer Institute. Fact Book (2002),
Section on Budget Data (B-8). <http://www3.cancer.gov/admin/fmb/02factbook.pdf>
4 U.S. Department of Health and Human Services. Public Health Service. National Cancer Institute. Fact Book (2003),
Section on Budget Data (B-8). <http://www3.cancer.gov/admin/fmb/03Factbk.pdf>
5 American Cancer Society, Inc., Surveillance Research (2003). Cancer Facts & Figures 2003 (p. 4).
<http://www.cancer.org/downloads/STT/CAFF2003PWSecured.pdf>
6 Central Intelligence Agency. The World Factbook 2004. United States. 14 September 2004.
<http://www.cia.gov/cia/publications/factbook/geos/us.html>
7 Timothy A Jamieson, et al. “M6P/IGF2R Loss of Heterozygosity in Head and Neck Cancer Associated with Poor
Patient Prognosis.”BMC Cancer 2003,3:4. 13 February 2003.
<http://www.biomedcentral.com/content/pdf/1471-2407-3-4.pdf>
8 U.S. Department of Health and Human Services. Public Health Service. Centers for Disease Control and Prevention.
Work-Related Lung Disease Surveillance Report 2002. May 2003. Section 7: Malignant Mesothelioma.
<http://www.cdc.gov/niosh/docs/2003-111/pdfs/2003-111.pdf>
References
9 Department of Health and Human Services. National Institutes of Health. Office of AIDS Research. OAR FY 2005
Congressional Budget Justification. <http://www.nih.gov/od/oar/public/pubs/fy2005/2005cj.pdf>
Department of Health and Human Services. National Institutes of Health. Office of AIDS Research. OAR FY 2004
Congressional Budget Justification. <http://www.nih.gov/od/oar/public/pubs/fy2004/fy2004CJ.pdf>
Department of Health and Human Services. National Institutes of Health. Office of AIDS Research. OAR FY 2003
Congressional Budget Justification <http://www.nih.gov/od/oar/public/pubs/fy2003/fy2003cj.pdf>
10 U.S. Department of Health and Human Services. Centers for Disease Control. National Center for Chronic Disease
Prevention and Health Promotion. Office on Smoking and Health. Chronology of Significant Developments
Related to Smoking and Health. May 14, 2004. <http://cdc.gov/tobacco/overview/chron96.htm>
11 National Cancer Institute. U.S. National Institutes of Health. Questions and Answers on NCIs Tobacco Research
Implementation Plan. November 19, 1998. <http://www.cancer.gov/newscenter/tobaccoQA>
12 U.S. Department of Health and Human Services. National Institutes of Health. Estimates of Funding for Various
Diseases, Conditions, Research Areas. <http://www.nih.gov/news/fundingresearchareas.htm>
13 National Cancer Institute. Research on Tobacco and Tobacco-Related Cancers. A Plan and Budget Proposal for
Fiscal Year 2005. The Nations Investment in Cancer Research. Broad Research Priorities: Public Health
Emphasis Areas. Section on NCI Develops New Framework for Interdisciplinary Studies.
<http://plan.cancer.gov/tobacco.html#sec5>
14 National Cancer Institute. A Snapshot of Leukemia. February 2004.
<http://prg.cancer.gov/snapshots/Leukemia-Snapshot.pdf>
15 H.Con. Res. 317, 108th Cong., 1st Sess. October 30, 2003. <http://thomas.loc.gov/>
16 American Insurance Association (1980). "Estimates of potential liability from asbestos and DES related injury (draft
preliminary report)." Presented to the task force on tort liability for cumulative trauma and latent injury.
<http://www.ewg.org/reports/asbestos/documents/pdf/AIA-Fullnew.pdf>
References
17 Jason McDonald (2000). Casualties in World War II. World War II Multimedia Database.
<http://www.worldwar2database.com/html/frame1.htm>
18 Department of Defense. U.S. Army Medical Research and Materiel Command. Congressionally Directed Medical
Research Program. September 22, 2004. <http://cdmrp.army.mil/.
19 H.Con. Res. 317, 108th Cong., 1st Sess. October 30, 2003.< http://thomas.loc.gov/>
20 Carroll, Stephen J., et al. RAND Institute for Civil Justice. Asbestos Litigation Costs and Compensation: Interim
Report. A Documented Briefing. 2002. Available at <http://www.rand.org/publications/DB/DB397/DB397.pdf>
21 Securities and Exchange Commission. Form 10-K Filings. Year Ending December 2003. Disclosure Statements of:
Armstrong World Industries, Babcock & Wilcox, Federal Mogual, Owens Corning and U.S. Gypsum.
22 NASCAR (2004). Turner Sports Interactive, Inc. The Cost and Value of Team Sponsorships. The Cost and Value of
Nextel Cup Sponsorships. <http://www.nascar.com/2004/kyn/nascar_101/05/20/team_costs/index.html>
Paul D. Kretkowski/American Thunder. FOX Interactive Television, LLC (2004). FOXSports.com. A piece of the
action: What it really costs to sponsor a NASCAR team. <http://msn.foxsports.com/id/2658556>
23 Carroll, Stephen J., et al. RAND Institute for Civil Justice. Asbestos Litigation Costs and Compensation, p. 81.
Monograph November 2003
24 Pharmaceutical Research and Manufacturers of America. Phamaceutical Industry Profile 2004. (Washington, DC:
PhRMA, 2004). <http://www.phrma.org/publications/publications//2004-03-31.937.pdf>
25 Vogelzang, Nicholas. “Re: Lilly’s Bill for Alimta.” E-mail to Author. August 20, 2004
26 S. 1115, 108th Cong., 1st Sess. § 417E (2003)