478 



This now points up another problem. Let us assume that the U.S. 

 Government has laid the groundwork either through grant-in-aid or 

 through a systems management approach by contract. 



The groundwork has been laid. Let us say it has been done through 

 the National Science Foundation through a university or nonproJBit 

 research institute and the basic data are available. You have finally 

 located a substance which has valuable commercial properties, and it is 

 released to a company for commercial development. 



The company begins to back away from the product because of Gov- 

 ernment contact, because of Government contamination as it were. The 

 question comes up, "Who is going to have the patent rights? How can 

 we reclaim our investment that we are about to make which may mean 

 X millions of dollars? How do we justify this to our stockholders?" 



So we have to try and develop some sort of a system where the 

 Government is beginning to work for the benefit of industry here, and 

 I think that industry in turn will be working for the benefit of Gov- 

 ernment. As I talk with many of these industrial groups I find a very 

 definite gap that is very difficult to bridge. 



I am presently involved in this situation. We are studying a toxic 

 microorganism that may have pharmaceutical potential. The Federal 

 Water Pollution Control Administration has asked us to take a look at 

 this material to evaluate it as to its commercial potential. We have a 

 grant. 



The big problem we find now is trying to get a company that is 

 willing to work with us because we have received support from the Fed- 

 eral Government. 



This is a delicate area of Government-industrial liaison that re- 

 quires immediate attention. At the present time we are suffering from 

 a deficiency of certain types of drugs within our Department of De- 

 fense because industry is not in a position to develop them when they 

 have either a limited use or they have the problem of Government 

 control in some way. 



I think, Mr. Chairman, that these are my remarks. 



(Dr. Halstead's prepared statement follows :) 



Statement of Beuce W. Halstead, M.D., Director, International Biotoxico- 

 LOGICAL Center, World Life Research Institute, Colton, Calif. 



Background data : This presentation is based on a report prepared by the Sub- 

 committee on Marine Biomedicine, Marine Technology Society, which was sub- 

 mitted to the President's Commission on Marine Science, Engineering, and Re- 

 sources, dated 19 December 1967. In this report the Subcommittee recommended 

 to the President's Commission that the U.S. Congress establish a National Insti- 

 tute of Marine Medicine and Pharmacology. This presentation is concerned with 

 the subject of biomedical oceanogiiaphy and the need for establishing a National 

 Institute of Marine Medicine and Pharmacology as recommended in the Com- 

 mission's report, Our Nation and the Sea. Members of the Marine Technology 

 Subcommittee were as follows : 



Bruce W. Halstead, M.D., Chairman, International Biotoxicological Center, 

 World Life Research Institute, Colton, California 92324. 



Earl Herron, Vice Chairman, Hereon, Inc., Scotch Plains, New Jersey. 



Paul Burkholder, Lamont Geological Observatory, Columbia University, Pali- 

 sades, New York. 



Ara Der Marderosian, Philadelphia College of Pharmacy and Science, 43rd 

 and Kingsessing & Woodland Aves., Philadelphia, Pennsylvania. 



Norman R. Farnsworth, Department of Pharmacognosy, School of Pharmacy 

 University of Pittsburgh, Pittsburgh, Pennsylvania 15213, 



