The Biotechnology Industry Organization (BIO) said fear of drugprice controls was the most frequently cited reason for delaysand cutbacks in biotechnology companies' research into AIDSand AIDS-related diseases.

Of the 30 companies involved in AIDS-related research thatresponded to a survey conducted by BIO, 47 percent said thatAIDS and AIDS-related research was being delayed or curtailedby the capital shortage the specter of price controls hascreated. Fourteen of the companies acknowledging delays intheir current AIDS research, and three stated that increasedcapital would speed up clinical trials.

Twelve companies, or 40 percent, pointed specifically to theuncertainty caused by the Clinton health-care proposals as thereason for the current shortage of capital. Four citedunfavorable or poor general market conditions forbiotechnology stocks.

"The lead antibody, AIDS-439, was intended to enter Phase Iclinical trials of infants born to HIV-infected mothers, andPhase II in adults," said Herbert Loveless, vice president forclinical development at Tanox Biosystems of Houston,commenting on his company's research.

But the studies have been put on hold because of lack ofinvestment funds. The stored antibodies will eventuallydeteriorate unless funds are rapidly made available, he said.

(c) 1997 American Health Consultants. All rights reserved.