of chemical research in the universities would be about $139 million in fiscal 1969. For the same year, the physics committee recommends that federal support of academic physics be about $550 million. The figures are deceptive. One measure of what you're getting for the money is the number of Ph.D.'s granted per year. Data in the Pake and Westheimer reports suggest that the $550 million to be spent on academic physics in 1969 will produce about 1150 Ph.D.'s, whereas the $139 million to be spent on academic chemistry will produce about 1500 Ph.D.'s in that science. The disparity lies at least partly in the fact that modern chemistry, though costly, is largely "little science." Modern physics, on the other hand, is partly "big science"—based on enormously expensive particle accelerators in a few research centers such as Brookhaven and Argonne national laboratories. The physics committee estimates, for example, that about 80% of current spending on research in elementary particles is apportionable to academic physics. The physics committee, like the Westheimer committee, split its science into subfields to be studied by separate panels. The panels then projected the total required support (federal and nonfederal, academic and nonacademic) for fiscal 1969, not including the 10% contingency for unpredictable scientific discoveries. The results:
Chairman Pake U.S. physics "generally strong" 24
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2 1 , 1966
• Astrophysics, solar systems physics, and cosmic rays—$105 million. • Atomic and molecular—$52 million. • Elementary particles—$330 million. • Intermediate energy physics— $55 million. • Nuclear physics—$99 million. • P l a s m a - $ 1 0 0 million. • Solid-state and condensed matter-$380 million. • Theoretical physics not covered by other panels—$8 million. The chemistry and physics studies were the first to be made. Both committees believe that their studies should be revised and updated in a few years. Meanwhile, another study of the current series—on plant sciences—is scheduled for release this summer. Studies on mathematics and biology are also under way.
Merger Will Form Large Japanese Textile Firm Japan's textile industry continues to merge and realign. The latest firms to pair off are Kanegafuchi Spinning (Kanebo) and Toho Rayon. On Aug. 26, they will form Japan's second largest textile firm (after Toyo Rayon). Only two weeks ago, Kanebo revealed plans for a joint venture in polyester fiber with Nippon Rayon, Mitsubishi Chemical, and later Nichibo (C&EN, March 7, page 34). And Toho Rayon had been considered a possible mate for Teijin. This latest merger and others like it are aimed at streamlining Japan's textile industry. Kanebo is a leading spinner of cotton, wool, nylon, silk, and now polyester. The company has cosmetic and food product interests as well. In the six months ending last Oct. 31, the firm logged sales of about $190 million. Toho Rayon is a leading synthetic fiber maker with a line that includes rayon staple, fiber, and yarn, acrylic fibers and yarns, acetylated rayon staple, and raw silk. Company sales for the six months ending last Sept. 30 totaled about $42 million. The move is thus mainly a horizontal integration. But it also joins Kanebo's well-oiled marketing machinery with Toho Rayon's technical strength. Ten shares of Toho Rayon stock will be worth six shares of Kanebo stock. Capital of the new company, to be called Kanegafuchi Spinning, will be about $383 million.
FPC Controls Stymie Natural Gas Search Unless federal regulation of natural gas producers is either relaxed or removed, gas consumers, including chemical makers, will soon face shortages and sharply higher prices, according to Stanley Learned, president of Phillips Petroleum. He told a meeting of the Executives' Club of Chicago that incentive for the nation's 8000 natural gas producers to search for gas reserves has been severely dampened by 12 years of "arbitrary and unrealistic" regulation by the Federal Power Commission. Mr. Learned predicts that by 1968 the U.S. will be using more gas than it is discovering. And if present controls continue, gas producers may be unable to meet demand in less than 10 years, he adds. With such a shortage, pipelines and distribution systems could no longer work at full capacity. This could add up to 20% to consumer prices, he says. More than one third of U.S. energy needs are met by natural gas. Industry uses 56% of the gas and commerce about 1 1 % . About 16.4 trillion cubic feet were produced in 1965. Demand should reach 23.7 trillion cubic feet per year by 1980. To meet this increase and still maintain adequate known reserves (18 times annual production), producers must find about 30 trillion cubic feet of additional reserves every year for the next 15 years. But producers have never found more than 25 trillion cubic feet of reserves in one year (1956). Since then, the number of exploratory wells drilled per year has dropped by 3 5 % . However, Mr. Learned is confident that gas producers can meet all future demands if they are given the incentive of a "fair market, assured by a firm contract." But this is just what producers have not had since a 1954 Supreme Court decision placed them under FPC regulation, the Phillips chief executive maintains. The commission controls the price that producers receive from interstate pipeline companies for the gas. He points to FPC's Permian Basin decision of last August. This set a well-head ceiling price (after deduction of production tax) of 15V2 cents per 1000 cubic feet for gas produced in three areas in Texas and New Mexico. In Mr. Learned's opinion, this price would have to be at least 20
cents to encourage producers to undertake adequate exploration. As it is, the 15 1 / 2 -cent price caused Phillips, one of the nation's largest natural gas producers, to withdraw a geophysical exploratory crew from the area. Another disconcerting aspect of the Permian Basin decision for gas producers is that it cut some gas prices already agreed to in earlier contracts, Mr. Learned adds. It is possible for FPC to establish principles for honoring contracts and setting reasonable prices, he says. But he does not think that producers will spend the money to find the necessary gas sources unless there is new legislation which assures them that there will not be continual, arbitrary changes in regulatory policies and procedures. New legislation must come quickly, he urges. It usually takes at least 10 years to develop a new natural gas reserve. Others concerned with natural gas share Mr. Learned's views. For example, Dr. Richard J. Gonzalez, a Houston consultant and former treasurer of Humble Oil & Refining, last month called for a more liberal view of maximum ceiling prices. Such action would test how the market responds. And it would show whether the rate of new gas development would increase satisfactorily with more incentive. Protection will exist against serious errors in being too generous because buyers will always seek the best bargain, Dr. Gonzalez said.
Some Scientists Hold Dim View of DMSO Ban Dimethyl sulfoxide (DMSO) may not be toxic to humans, but the recent federal ban on further clinical studies has inflamed the emotions of scores of scientists investigating the much-ballyhooed agent. The Food and Drug Administration's order is already proving to be one of the most scientifically unpopular decisions ever made by the 60-year-old agency. Up to 50,000 patients in the U.S. (and perhaps 500,000 world-wide) have been treated with the superpermeable drug since it burst upon the public and the medical profession more than two years ago. FDA decided last autumn to halt the drug's uncontrolled use and quietly issued the ban. Its order, based partly on reports of possible human eye dam-
age, was revealed two weeks ago during Congressional hearings. The disappointment and bitterness aroused in recent weeks became apparent last week during a special scientific symposium on DMSO sponsored by the New York Academy of Sciences. "I personally think it is the safest drug I ever worked with/' said a Cleveland clinic scientist, protesting FDA's contention that DMSO's safety and efficacy were both questionable. Papers presented at the meeting gave DMSO credit for alleviating such varied ailments as ulcers, tissue inflammation, heart disorders, and neurosis. In all, more than 1200 physicians and scientists were testing the drug for its basic mode of action and therapeutic versatility, many in violation of FDA's investigational standards. When the ban was reported, scores of physicians received phone calls from DMSO-treated patients expressing fears of eye damage. Lost perhaps for good, said one participant, is the chance to give the drug a full, fair trial. FDA thus emerges as the scapegoat in the DMSO affair. It was slow in blowing the whistle on illegal testing; then it aroused sudden fear concerning efficacy and safety just as meaningful human results were coming in. But the issue runs deeper. It turns out, from opinions expressed at the meeting, that none of the four principals in the caper—federal, industrial, scientific, and communications—exercised full responsibility. Companies involved were too quick in their attempt to exploit the publicity potential that quickly followed reports of the drug's remarkable properties. The press naively made itself purveyor of the hoopla. Investigators in and out of industry proceeded with human studies largely ignorant of federal responsibility over regulating such a new agent. "This may result in the cessation of DMSO research," said Dr. Irving Wright of Cornell University. "It's regrettable. But let's hope this will be a lesson for us to consider while rethinking our responsibilities in all stages of drug development." One solution proposed by FDA's Dr. Arthur Ruskin, often badgered during an evening session, was more meetings on new drugs such as the academy gathering. "We should have more of these . . . workshops . . . ."
Syntex, Du Pont Form Research Partnership Du Pont and Syntex Research Corp. have teamed up in a research agreement covering the development of drugs for use in endocrinology. The agreement is limited to specific compounds which the two companies agree to investigate. Either party may independently market any product which results from the agreement. The program intensifies Du Pont's activities in pharmaceuticals. In 1962, a pharmaceuticals research division was established by Du Pont as a part of its industrial and biochemicals department. The first product developed in the division—Symmetrel—is nearing commercialization. Symmetrel (amantadine hydrochloride) is an oral antiviral agent for use against some strains of flu viruses, particularly Asian flu. Du Pont has filed a new drug application to market the agent as a prescription drug. Action by the Food and Drug Administration on the NDA awaits additional clinical data from Du Pont. Du Pont's activities in biochemicals include three commercial animal health products: Impedex (sodium propionate), a mold inhibitor for use in livestock feed and as an aid in the control of ketosis in dairy cattle; Hydran, a feed supplement which serves as a methionine source for poultry; and Two-Sixty-Two, a urea feed material which Du Pont says produces 262% of its original weight in animal protein. Syntex, a Panama corporation, has its headquarters and additional research facilities in Mexico City. Syntex Research, at Palo Alto, Calif., concentrates on research in steroid contraceptives and anti-inflammatory compounds. Current research activities there also include studies of insect hormones (see page 3 8 ) . In 1959, Syntex entered into a joint research agreement with Eli Lilly & Co. Under that agreement, Lilly provided 50% of the support for research on selected projects. This agreement has since been scaled down considerably. Cooperative research arrangements such as that between Syntex and Du Pont are also under way in Europe. West Germany's Farbenfabriken Bayer and France's Rhone-Poulenc are combining their research efforts in cancer and virus drugs (C&EN, Feb. 14, page 26). MARCH
21, 1966
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