Slump Threatens Nuclear Freeze Biotech Set to Go Public

N_A_TU __ RE__ v_o_L._~_3_~ __ MA__ Y_I~_3 _______________________________ NEVVS-----------------------------------------------2~D French energy policy Biotechnology Slump threatens nuclear freeze Biotech set to FRANCE, the citadel of civil nuclear power As for the government, the secretary of in Western Europe, need not order another state has described the report as "il nuclear power station until 1987 at the luminating''. Robert Wa1gate go public earliest. That is the most startling of the • Pierre Mauroy, the French Prime WHo would pay $40 million or a propor conclusions of the "long-term energy Minister, announced figures last week that tion thereof to own a corresponding share group" of the planning ministry which put suggest his austerity programme-dubbed in a debt of $10 million? Only a bio out an interim report on its work last week. '' rigueur'' in France - is beginning to technology investor. Many of that kind will The group's report says that France can get work. The overseas trade deficit fell from be hammering on brokers' doors when by for the next four years with its present FF 6,500 million in March to FF 1,500 Damon-Biotech, an enterprise based at the complement of nuclear power stations million in April. Exports rose 2 per cent. Massachusetts Institute of Technology (and the six under construction) unless Special factors -such as unusually low oil (MIT) with ex-MIT president Jerome B. economic growth exceeds 2.2 per cent this imports - improved the picture, but the Wiesner on the board of directors, offers decade and 4.6 per cent in the 1990s. The auguries are felt to be good, after a long 2.4 million shares of its common stock to chances of that happening are slim. period of despair. D the public in the next few weeks. Economic activity increased by 0.3 per cent Biotech, as it is commonly known, began in 1981, 2 per cent last year and is officially life in 1978 with an ambition to produce estimated at zero in 1983. China stays friendly and market monoclonal antibodies. Five The nuclear industry is not the energy Washington years later, its chief claim on public atten group's sole target. Gaz de France has sign CHINA seems to have decided not to allow tion seems to be a process for encapsulating ed agreements to buy in 1990 the equivalent political strains in its relations with the cells in plastic porous membranes in such a of at least 29 million tonnes of oil a year United States to damage the science and way that they live, multiply and continue to as natural gas from Soviet, Algerian, technology agreement signed by the two secrete but are immune from damage. Norwegian and other sources, but the countries in 1979. A US delegation, led The encapsulation process, patented and group predicts an annual consumption of by presidential science adviser George registered as Encapcel, described in the only 22 million tonnes of oil equivalent Keyworth, returned from Peking (Beijing) draft prospectus circulated on 28 April as by then. last week with new agreements on nuclear an enabling technology, has certainly As the group sees it, the problem is physics, transportation, aeronautics and enabled the company to go public. twofold. The price of oil has fallen with biomedical research under its belt. Since 1981, the company has had a con respect to the dollar by 20 per cent in two The visit, a largely ceremonial annual tract with Hoffmann La Roche to produce years, undermining the incentive for large event, came at a particularly bad moment gram quantities of antibodies against consumers to turn away from oil. And the diplomatically. The Chinese are still smar human alpha, beta and gamma interferon. economy has stopped growing, dashing ting after the defection to the United States This led in 1982 to a scale-up contract in hopes of a 5 per cent growth rate. of their tennis star, Hu Na. Relations have tended for producing kilogramme amounts The planning group offers only one con suffered again in recent weeks because of a of interferon antibodies. In the half-year to legal dispute over the validity of a number solation - that the Mitterrand the end of February, Biotech claims sales of presidency's present policies of investment of Hu-Guang railway bonds purchased by $1.4 million, ahead of production and ad US citizens 80 years ago. Meanwhile, there in innovation and research may begin to ministration costs by $350,000; research bear fruit after 1990. has been Httle progress in the disagreement and interest charges led, however, to a loss What is to happen meanwhile? The over Taiwan. of $1.2 million. At a plenary session opening the Peking report says that the energy industries can be The chief hope for the future is, supported only by a costly policy of meeting, however, Fang Yi, former head of however, the technique of encapsulation, minimum construction to keep them alive. the Chinese Academy of Sciences and a described as a means by which animal cells For the nuclear industry, it recommends signatory of the original agreement, was may be cultured on a fermentation vat content to scold the United States for its just one reactor a year - compared with scale. Its invention is credited to Dr three at present and as many as six in the curbs on technology transfer to China. In Franklin Kim of the Medical College of heyday of nuclear expansion. The nuclear subsequent working meetings, said one US Virginia. industry, naturally, does not consider this participant, the Chinese appered to want The technical trick is to immerse enough. Even at two a year, one company business as usual. biological materials such as cells in a claims it would need to make 3,500 redun Complaints about US restrictions on medium that can become a gel, to form dancies. Framatome, which builds the technology transfer were raised during the small droplets of the medium and to make nuclear steam supply systems, has pro visit to China of Secretary of State George them gel, to coat the droplets with plastic nounced itself "anxious". Shultz in February. On that occasion, Mr and to reliquefy the gel. In the wake of the report, the great Shultz told the Chinese that the United Although Biotech claims to have made a French effort in renewable energy (par States was restricting its technology curbs profit since and including 1980, overheads, ticularly biomass) and conservation may to those necessary for national security research and interest have made its net loss now be harder to defend than in the past. purposes. He claimed that the number of fluctuate between $1.4 and $2.5 million a Indeed, some are even suggesting that the advanced technology export licences issued year. At 28 February 1983, the ac government should now provide incentives to the Chinese had trebled in three years, cumulated loss exceeds $8 million, since to consume energy, and that France should reaching 1, 700 in 1982. when Damon has provided further sums to also export the stuff. Measured by the number of exchanges keep Biotech afloat. between China and the United States, the However, Michel Rolant, director of the $10 million and now wants it back. It also energy-saving and alternatives body, 1979 accord has helped China more than the United States. There are more than holds 13 million shares which cost it Agence Franc;aise pour Ia Maitrise de $130,000 and will own 70 per cent of the l'Energie, has welcomed the report, and 10,000 Chinese students and scholars in the United States, of whom 4,700 are govern equity if the draft prospectus becomes added that France must avoid "wasting in ment-supported exchange scholars. The reality. The offering at between $16 and vestment" in nuclear plant, when the number of Americans visiting China is $18 a share thus values Biotech at between public financial situation and French $400 and $500 million- a little on the high around 500. Peter David endebtment overseas are already so bad. ~~. D 0028-0836/83/210273-01$01.00 C> 1983 Macmillan Journals ltd .

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