A Canadian drug company accused of having too much influence at the University of Toronto has withdrawn $19-million of a $20-million gift to the institution, citing financial difficulties.
Apotex Inc., the country’s largest generic drug maker, said last week that new federal drug-patent regulations would seriously hurt the company’s future profitability, and had forced it to renege on several philanthropic commitments.
“We have a great relationship with the university,” said a company spokesman, Elie Betito. “It was strictly a financial consideration.”
The announcement comes two months after the president of the University of Toronto, J. Robert S. Prichard was revealed to have lobbied government officials on behalf of Apotex. Mr. Prichard, who later apologized for his actions, had asked the Prime Minister and others to extend a review of the regulations, which have made it more difficult for generic drugs to be put on the market. Mr. Prichard told university officials that he had intervened because he feared the proposed regulations would make it financially impossible for Apotex to make its promised donation, earmarked for a new center for cellular and biomolecular research.
Last year, the company fought with a University of Toronto medical researcher who published findings critical of one of its drugs. Apotex, a sponsor of her research, tried to suppress the study. The university initially sided with Apotex and temporarily removed the professor from her post.
The gift would have been the company’s largest to the university to date, said Susan Bloch-Nevitte, director of campus public affairs. Because of Apotex’s withdrawal, matching government funds of $57-million for the center are on hold until the university can find replacement donors. The total cost of the project is expected to be $92-million.
Apotex made the financial commitment in early 1998. But Ms. Bloch-Nevitte said that about a month ago, the company warned the university and others to whom it had promised money that it might not be able to follow through. She said the university, which will now receive just $1-million, has no hard feelings toward Apotex: “It’s just a change in the business environment.”
Background story from The Chronicle:
