Posted on the Inquirer Tue, Jan. 11, 2005

Research royalties went untold

Government scientists got millions and did not have to tell those tested. Now, that must change.



Associated Press

Government scientists have collected millions of dollars in royalties for experimental treatments without having to tell patients testing the treatments that the researchers had a financial connection, according to documents and interviews.

The personal royalties are legal, though the researchers developed the treatments at government expense. The Department of Health and Human Services promised in May 2000 that scientists' financial stakes would be disclosed to patients, a pledge that followed an uproar over conflicts of interest in federal experiments.

The National Institutes of Health says it did not order the disclosure of royalties until last week, shortly after the Associated Press filed a Freedom of Information Act request.

"Quite frankly, we should have done it more quickly," NIH spokesman John Burklow said. "But as soon as Director [Elias] Zerhouni found out about it, he ordered it done immediately."

The nearly five-year delay means hundreds, perhaps thousands, of patients in NIH experiments decided to participate in experiments without full knowledge about the researchers' financial interests.

In all, 916 current and former NIH researchers are receiving royalty payments for drugs and other inventions they developed while working for the government, according to information obtained by the AP. In 2004, these researchers collected a total of $8.9 million. Only a dozen received the legal maximum of $150,000 a year.

The arrangements can create concerns about conflicts.

For instance, two top managers in NIH's infectious-disease division have received tens of thousands of dollars in royalties for an experimental AIDS treatment they invented. At the same time, their office has spent millions in tax dollars to test the treatment on patients across the globe, the records show.

Such research helps bring the treatment closer to commercial use, which could in turn bring the researchers and NIH higher royalties.

Except for patent records and scientific journals, the patients have had no easy way of learning about the researchers' financial stakes.

That is because NIH told doctors not to report royalties on federal ethics disclosure forms and did not require the royalties listed on patient consent forms until last week's policy.

Fifty-one NIH royalty recipients are involved in clinical research involving the inventions for which they are being paid, meaning they will be affected by the new policy, according to records.

Among them are Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, and his deputy, H. Clifford Lane.

The two managers have received $45,072.82 each in royalties since 1997 for an experimental AIDS treatment known as interleukin-2 that they invented with a third NIH doctor, Joseph Kovacs, the records show.

Fauci, an internationally known expert on illnesses from the flu to AIDS, said he originally refused to take the royalties but was told he legally had to accept them. So he has donated all the money to charity.

Lane keeps his royalties but said he occasionally gave patients journal articles listing him on the patent for interleukin-2.

"I believe patients should know everything that might influence their desire to be participants in research," Lane said.

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