Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Quintin Lai with Robert W. Baird.
Quintin Lai - Robert W. Baird & Co., Inc.
With respect to the NIH and the stimulus package coming forward, you kind of mentioned increased quota activity and thank you very much for the expectations for the impact to your business of $100 million. Did you see any impact in the quarter of researchers perhaps spending more time grant writing and less time at the bench?
Greg Lucier
We have heard some of that, of course. I would say though that it had really minimal impact on our business for the quarter.
Quintin Lai - Robert W. Baird & Co., Inc.
Okay and then what have your sources or contacts been saying about potential in the fiscal 2010 budget for the NIH? I mean we’ve seen some positive things come out this afternoon. I guess we’ve seen Arlen Specter who has been a big proponent and now switching over to become a democrat. What impact do you think 2010 could have for the NIH?
Greg Lucier
We think 2010 will see a modest increase in the NIH budget and driven primarily because our current estimate is most of the stimulus spending will take place next year, so I’d say now most of the focus is on the 2011 budget and we expect that, and the current dialogue in Washington is how do we sustain the elevated funding levels that the stimulus will give us in 2010. So that is where we put our energy and our dialogue with legislators and I would say that’s where the current discussion is really centered is 2011 building off of 2010.
Quintin Lai - Robert W. Baird & Co., Inc.
Do you get the feeling, Greg, that this time around that they’re going to try to avoid kind of that drop down from the last five year doubling project and continue to grow off of a base of, let’s say, 2010 plus stimulus?
Greg Lucier
Quintin, I think the lessons from the past of the doubling and then not sustaining it are really well known in Washington and so that is really, I think, the most refreshing aspect of the dialogue today.
Secondly is that there is really an enthusiastic response for the NIH and more broadly just funding innovation at the Federal level. President Obama spoke to the Academy of Sciences and committed to try to get to 3% of the Federal budget for the spending of innovation of which the NIH would be part of it. So I think we’re on a good path. Nothing is assured, but certainly the tenor of the dialogue has changed just in the last few months here and so we feel good where the NIH is going.
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