It may look sordid, but UT System officials insist they broke no state laws and there is no conflict of interest. Heard this one before?

After voting unanimously to license a new gene therapy developed at the M.D. Anderson Cancer Center to Introgen Therapeutics back in 1994, the Houston Chronicle reported that former UT System Chancellor Bill Cunningham, and UT regents Tom Loeffler and Charles Miller stand to gain a profit when Introgen goes public soon. That's because each owns stock in the gene therapy company that was licensed to use the gene research completed at M.D. Anderson.

Cunningham, who was chancellor when Introgen was awarded the license, was appointed to Introgen's board of directors on June 10, less than two weeks after he stepped down as chancellor.

Loeffler, was slightly less tactful in his dealings with Introgen. In 1997, three years after awarding Introgen the highly lucrative contract, Loeffler, still a regent, was appointed as a director. Later, only under heavy criticism did he feel the need to resign from from the company he gave valuable UT research to. Loeffler has said he had no clue he would later become involved with Introgen.

While Loeffler may not have known, Introgen probably did. Known as the "Revolving Door," corporations often reward government officials who steer funding or profitable contracts their way with stocks or top positions in their company.

Although the UT System does manage to get a small piece of the pie when Introgen goes public (about 1.5 percent of net sales and some stock), Cunningham and the regents missed no opportunity to get their hands in the deal obviously a self-reward for their undying devotion to the principles of higher education.

Cash-starved Loeffler, who's only income comes from his jobs as a lobbyist, a lawyer and a fund-raiser for Gov. George W. Bush, was selfless enough to place his Introgen stocks in a charitable trust. But Cunningham, who is currently drawing a hefty $370,000 salary from the University while on he's on sabbatical (unemployed), only stands to make a paltry $20,000 from the sale of his stocks in Introgen, who's board he currently sits on. But regent Miller, who claims innocence since he owned Introgen stock before joining the regents, could haul in around $120,000 from cashing in his stocks. Although Miller wasn't a regent when the license was granted, he did work for a fund-raising arm of M.D. Anderson at the time.

The love affair with the UT System and Introgen is much more involved than just the matter of regents serving as directors for Introgen. The company stands to make some serious profits in the prosperous, and highly controversial biotech industry. Gene therapies, and the companies that develop them, are regarded as some of the most profitable on Wall Street. M.D. Anderson has licensed almost 200 patents exclusively to Introgen since 1994.

The value of UT officials' stock is based on initial offering prices. If the biotech industry keeps booming, the stocks would skyrocket in worth.

We encourage regents Miller and Loeffler to sell their stock in Introgen. While they are not violating any state laws, the regents' rampant profiteering off the backs of Texans and the UT System is getting tiresome. Now, they are making money off selling taxpayer-funded cancer research.

Just because it isn't illegal doesn't make it right.
 
 

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