NEWS OF THE WEEK GOVERNMENT
ADVISER NAMED TO TRADE COMMITTEE Environmentalists say researcher does not fulfill court settlement terms
C
HEMICAL COMPANIES ARE
poised to resume consultations with U.S. trade officials after the Bush Administration last week named a researcher from a conservative think tank to a trade advisory panel. The group's meetings were suspended in March while the Administration sought an environmental representative for the committee. But environmental groups say the appointment does not fulfill the government's obligations under a legal settlement that required inclusion of a "qualified environmental representative" on the panel. Earthjustice Legal Defense Rind is prepared to return to court to get an environmental activist named to the Industry Sector Advisory Committee on Chemicals & Allied Products, known as ISAC-3. Such a legal move possibly could keep ISAC-3 from holding meetings until a court rules in the case. Meanwhile, chemical and pharmaceutical manufacturers are eager to restart their discussions with U.S. trade negotiators (C&EN,Dec.l6,page28). Last week, the Commerce Department named Brian Mannix, a senior research fellow at George Mason University's Mercatus Center, to ISAC-3. Mannix, who holds Harvard master's degrees in chemistry and in public policy, specializes in environmental and energy regulatory issues for the conservative-leaning center. A spokeswoman for the Commerce D e p a r t m e n t says that since Mannix works for a nonprofit organization, he is qualified to be ISAC-3's environmental representative. HTTP://PUBS.ACS.ORG/CEN
But Patti A. Goldman, managing attorney for Earthjustice, says that, while the Bush Administration has the prerogative to include Mannix on ISAC-3, he does not meet the criteria of an environmental representative. "I think they've destroyed the settlement," Goldman tells C&EN. "We're back to litigation." Environmentalists sued the government to gain a seat on the chemicals panel after a federal court granted them a slot on trade advisory committees for wood products and for paper. Rather than litigating a third case, the government settled the ISAC-3 suit by agreeing to appoint an environmental representative to the committee. Goldman says the antiregulatory, market-based views advo-
cated by the Mercatus Center may be helpful to ISAC-3's discussions. However, the goal of the Earthjustice suit was to ensure that the chemicals panel membership had a balance ofviews— including an environmentalist. Goldman says this is especially important if Mannix is on the committee, since some free-market proponents argue that legitimate health and environmental regulations are barriers to trade that should be eliminated. Several national environmental groups supported Rick Hind, legislative director for Greenpeace, for the environmental representative slot on the chemical trade panel. But last week, Hind got a rejection letter from the Commerce Department saying, "We are not in a position to invite you to serve on the Committee." The letter did not indicate why Hind was passed by Geoffrey B. Gamble, chief international counsel for DuPont who has served as chairman of ISAC-3, tells C&EN that in the wake of Mannix's appointment, the committee is scheduled to meet next on Jan. 15, 2003.— CHERYLHOGUE
B I O T E C H N O L O G Y
Renewed Strength For Sector At Year's End
H
aving spent 2002 in Wall Street's "penalty box," the publicly traded biotechnology industry is on its way back up, according to an end-of-the-year market overview by Burrill & Co., a life sciences merchant bank. Market capitalization for the sector rose from $219 billion at the end of October to $225 billion as of Dec. 9. Though this figure is down 54% from its February 2000 high of $490 billion, and 41% from 2001's $382 billion, the sector "is in better shape than many expected, even prospering, contrary to public perception," says G. Steven Burrill, CEO of the company. In a year marked by ImClone's Erbitux debacle and Elan's reorganization in the wake of accounting practices scrutiny, biotech firms have managed to close numerous financing
deals, raising nearly $10 billion. Amgen's $2.25 billion debt offering in the first quarter of 2002 led the action. Venture capital flowing into the sector has reached $2.6 billion so far this year, up from $2.4 billion in 2001. Burrill says 2002 will be a record year for venture-capital investment. He says the year ahead is promising, given a record-high 370 biotech drugs in clinical trials or awaiting approval, billions of dollars in federal funding for biodefense projects, and continued breakthroughs in life sciences chemistry. Despite renewed strength, Burrill says capital markets will remain volatile in 2003, and restructuring and company delistings will continue, particularly over the next six months. He also predicts more than a dozen initial public offerings next year.-RICK MULLIN
C&EN
/ DECEMBER
23. 2002
9
