Vested interests "circling" medical fund

The federal government has been warned vested interests are circling its medical research future fund "like sharks".

The former head of the nation's peak medical research body says the pharmaceutical and wellness industries along with other lobby groups are trying to take a slice of the fund by bypassing bodies that can adequately review the merits of projects.

Warwick Anderson says former health minister Peter Dutton was flooded with emails about how to spend the $20 billion fund within 30 seconds of it being announced last year.

But only peer reviewers could best judge whether an idea was better than another, not the government, the former chief executive of the National Health and Research Council said.

Professor Anderson said it was reassuring the government has promised most of the funds will be in the hands of the council.

"But I can tell you the vested interests are already circling like sharks," he told the National Press Club on Wednesday.

Legislation establishing the fund, which had previously been tied to the now-scrapped GP co-payment, will be introduced to parliament later in the year.

The $20 billion will be built up from savings from the health budget and will be used towards the discovery of clinical breakthroughs.