AgResearch GE-Animal Funding Threatened by FDA Fine

The parent company of GTC which has funds in AgResearch’s development of GE animals is facing a fine by the FDA of US$175 million for "up front disgorgement" of past profits, and has reported a first quarter loss of US$115 million.

The financial instability of GTC and its US parent company Genzyme Corporation [1] puts the New Zealand government and Crown Research Institute AgResearch in a vulnerable position as they are the biggest overseas investors in GE animals. AgResearch contracts with GTC have include GE animals to produce recombinant (GE) proteins such as human Follicle Stimulating Hormone, lacto ferrin and myelin basic protein (MBP), all with un-acceptable animal mutations and deformities.

“The Minister must take action to protect New Zealand from any fall out from the financial woes of AgResearch’s partners,” says Jon Carapiet from GE- Free NZ in food and environment. “There is a lack of due diligence by ERMA on the financial position of AgResearch’s programme, as liability and responsibility for an overseas company’s collapse could fall to the New Zealand taxpayer".

“The partnership on the creation of GE animals is extreme science verging on voyeuristic sadism,” said Claire Bleakley of GE Free NZ in Food and Environment. "AgResearch's overseas partners in this venture also present a serious financial risk to New Zealand. There is already fall-out from this failing GE project in the loss of other science jobs at AgResearch which will impact the farming sectors that are most important to New Zealand".

ENDS

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