Department of Health

Selected Aspects of the Joint Venture Agreement Between Health Research, Inc. and Institut Merieux

Health Research, Inc. (HRI) is a not-for-profit corporation chartered under New York State law to conduct research into areas of public health. The research is financed by governmental and private sources and is supervised by the Department of Health under a contract between New York State and HRI. In 1986, HRI entered into a joint venture agreement with Institut Merieux, a private corporation based in France, to develop a vaccine technology that was invented by an employee of the Department of Health. Under the terms of the agreement, the technology was to be sold to Institut Merieux during the year ended March 31, 1996.

We audited HRI's administration of the agreement to determine whether New York State's interests were adequately protected. We found that, because of insufficient monitoring by HRI, the State's interests were not adequately protected. During the audit we brought our concerns to the attention of Department and HRI officials, and recommended postponement of the technology transfer, as allowed by the terms of the agreement. In accordance with our recommendation, the transfer period was postponed.

For a complete copy of Report 97-S-11 click here.
For a copy of the associated follow-up report click here.
For a copy of the 90-day response click here.