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ScnppsRnsnenc,n
tr TIrE
10666North Torq PinesRoad
IzJolk, CA 92037
Tchpbonc619.455.9100
FOR IMMEDIATE REI,BASE
For infornation:
Robin B. Goldsmith
(619) 5s4-8t34
# 051694
The Scripps ResearchInstitute and SandozPhamaceuticals Corp.
Sign Researei Industry Collaboration Agreement
La Jolla, CA. May L6, L994- The ScrippsResearchInstinrte(TSRI) and Sandoz
PbarmaceuticalsCorporation of East Hanover, New Jersey,bave executedan innovative
multi-year researchindustry collaborationagreementwhich has receivedthe approvalof
the National Institutesof Health NI[D. The agreementis a modified version of a
previously proposeddocumenttbat raisedcotrcenu at the NIH and with various members
of Congressabout the scopeand natureof sponsoredresearchagreements.
Officials from TSRI and Sandozbelieve that the new agreementis a uniEre vehicle for
achieving severalimporant objectives: servingthe public pollcy objectivesof the BayhDole Act, which stipulatesthe timely commercializationof scientific discoveriesfundedby
Federal agencies;providing reasonableaccessto Federally funded researchon the paxt of
small business;promoting the availability of unrestrictedfunding of America's resealch
institutions by industry; and benefitting societyat large by the efficient transfer of basic
scienceinto useful pharmaceuticalsand therapeutics.
-The agreementis similar in nature to long-standingarrangementsthe Instinrte has
maintainedwith Johnson& fohnson, and PPG Industries.
According to Richard A. krner, M.D., TSRI President, nWe have worked diligently with
all parties involved to respondappropriatelyto the concernsraised by membersof
Congressand the NIH. We believe that the agreementwe have negotiatednot only
addressestheseconcerns,but also providesa useful framework for others for the
resolution of someextremely complex and important iszuesrelated to technologytransfer."
"The primary objective of the Sandoz-Scrippsresearchalliance is to discover and develop
innovative medicationsthat advancemedicalpractice and benefit patients. We are pleased
that a nrmber of the important iszuesraisedby this alliance have been identified and
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resolvedto the satisfactionof all concernedparties," said Timothy C. Rothwell, President
and Chief Executive Officer, SandozPharmaceuticalsCorporation.
CongresswomanLynn Schenk@-California) remarked, uThepositive resolution of the
Scripps-Sandoznegotiationmeansa $200 million invesffient in SanDiego's economy. I
was pleasedto play a role in this processto ensurethat Scrippshad a full and fair hearing
in Washingtonand to ensurethat this negotiationwas resolvedto the benefit of taxpayers,
consumersand the scientific community. I am delightedthat Scrippscan now go forward
with their r€search."
Under the agreementscheduledto take effect ra.1997, Sendozis to provide TSRI with both
generaland specific researchfiuding in the amountof $20 milliqa per year for a period of
five years, with a renewal option of an additional five years. In return, Sandozreceives
the first option on rights to just under half of TSRI's generally flrndedmedical discoveries
with a 90-day period in which to evaluatethesediscoveriesand exerciseits option to
obtain a licenseto pursuetheir development. Excludedfrom the ilrangement are
numerouscollaborativeand funding agreementsbetweenScrippsand other biotecbnology
and pharmaceuticalcompanies,most of which are small businesses.
nln this era of increasingcompetition for preciousFederalfunds for
basic research,the
necessityfor securinggeneral, or unrestricted,funding cannotbe overstated,"explains
Irrner. 'With the NIH no longer able to provide funding for infrastnrcture- facilities
modernizationand expansion,acErisition cif state-of-the-artequipment- as well as the
recruiffient of talentedyoung scientistsand the purzuit of innovative researchthat would
not otherwisebe funded by the Government,corporatefunding becomescrucial to the very
survival of private academicresearchinstinrtionssuch as Scripps," he continued.
Consistentwith TSRI's purposeand in order to achievethe benefitsof umestricted,
industrial funding while ensuringfair accessto the small businesscommunity, the Institute
is establishingan Office of Small BusinessCollaborations. Its purposeis to seekand
promote oppofirnities for scientific collaborationsat Scrippszuitablefor small businessand
administera "Small BusinessFund' to benefit small businesscollaborationsby setting
aside a percentageof Scripps' royalties earnedfrom Sandoz.Scrippsalso will provide NIH
with the data it needsto monitor the adequacyof accessafforded small businessto
Federally funded research.
Ensuring accessby small businesswas of particular concernto Congres$nanRon Wyden
@-Oregon), Chairmanof the Subcommitteeon Regulation,BusinessOpportunities,and
Technologyof the House Committeeon Small Business. krner expressedhis gratitudeto
CongressmanVlyden for his particularly helpful role in guaranteeingthat the interestsof
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TSRI-SandozAgreement
small businessare addressed,and for his long-standingand successfulefforts to ensurethat
the final agreementbest servesthe public interest. "We are confident that the agreement
will benefit small business,as well as the public interestgenerally," saidI-erner.
Lerner explains, "The security of the financial underpinningsafforded to us by corporate
sponsorsallows an organizationsuchas Scrippsthe oppornrnityto diversify our intellecnral
portfolio by taking the risks inherentin collaborationswith small business. Given the
amount of intellectual output at the Institute, we feel that the iurangementwith Sandozwill
enhancethe potential for numerousagreementswith small business."
Other changesto the previousdocumentinclude thosethat pertain to issuesof perceived
control by Sandozand Scripps' relationshipswith third party collaboratorson scientific
projects. Like the original proposal,this documentexplicitly acknowledges
Scripps'
scientific independenceand its commitnrentto investigator-initiatedresearch,and
specifically prohibits Sandozfrom controlling or directing researchat TSRI.
Iraders from Sandozand TSRI note the numberof areasof scientific compatibility
betweenthe two organizationsas a reasonfor the potential successof the collaboration.
Sandozis recognizedfor its strengthin immunology, as well as its researchprograms in
autoimmunediseases,cardiovascularand respiratorydisorders,neuroendocrinologyand the
central nervoussystem. Scripps' work in theseareasfocuseson the nexusbetween
chemistry and molecularbiology in solving questionsof basic biological mechanismsof
disease. Thoseareasof commonresearchinterestswill facilitate the efficient transfer of
technology
The ScrippsResearchInstitutehasan annualbudgetof $120million and receives
approximately$70 million from the NationalInstitutesof Health. Establishedin 1919,
SandozPharmaceuticals
Corporationis a zubsidiaryof SandozCorporation,whose
affiliates employ 10,000peoplein the United States.
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