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Planned sale of toxicology lab has been put on hold

A plan to spin off the nation's toxicology laboratory has been put on hold as the Development Center for Biotechnology evaluates alternative solutions.

"The plan to sell the lab is now stalled as we need to review it to suit our best interests," said center chairman Wu Shuh-min (吳樹民), who made his first media appearance yesterday after taking over the helm from Ho Show-chuan (何壽川) in April.

Ho decided a few years ago to spin off the facility because of its high maintenance costs and lack of breakthroughs. But in May, legislators slammed the research institution over the planned sale of the lab to US-based Bridge Pharmaceuticals Inc, saying the price was far too cheap compared to the money the government had invested in the lab.

The estimated market value for the lab is NT$250 million (US$7.74 million), while Bridge Pharmaceuticals' bid was NT$100 million, a public relations official at the center said.

Set up in 1995, the lab is one of only two in Asia -- the other is in South Korea -- certified by the Association for Assessment and Accreditation of Laboratory Animal Care International.

The plan to sell the lab cost it government funding last year, resulting in a loss of NT$39 million. But the center said the loss had been reduced to NT$6 million in the first six months of the year, and it hoped the lab would break even by year's end.

Wu said the decision to spin off the lab was made based on the climate at that time, and the center now must determine if selling the facility would really benefit local industry.

"We are afraid that any firm which takes over the lab would use it largely for commercial purposes. This would make our life tougher when we need to test new drugs," he said.

New drugs from pharmaceutical companies or research organizations are normally given to toxicology labs to test on animals for toxicity, before progressing to clinical trials on humans.

Wu dismissed criticism over the 22-year-old center's failure to break new ground in the biotechnology industry.

"Biotechnology is a field that requires long-term investments and lots of money. The idea of making quick returns on investment should not be applied to the biotech sector," he said.

The center is scheduled to name a new president before September. Several people have expressed an interest in the job.
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