| Evidence
for the prosecution: During
his inquiries, Deer was passed documents
dated March 22 1999
which showed that, long before VaxGen
offered shares to the public, the most
important government cheerleader for
AidsVax - Dr William Heyward,
head of HIV vaccine research at the
Centers for Disease Control - had a
secret deal to join the company. Out of
public duty, Deer gave some to the inspector-general,
health and human services,
who launched a formal inquiry |
| Go with
the flow:
From CDC in Atlanta, Heyward had lobbied
policymakers and approved $8m in
grants for VaxGen. But the
company had already drawn this chart
on his future duties, and in January
2000, he joined ex-CDC staffer Dr
Donald Francis, VaxGen
president, who also hired former CDC
deputy director Dr Walter Dowdle
to head its influential data monitoring
board |
| United
States v William L. Heyward: With
Deer's papers, federal attorneys brought
charges against Heyward, accusing him of
violating anti-graft laws intended to check
corruption in public service. Heyward,
now a VaxGen vice-president, eventually
admitted the conflict, paid a $32,500
fine and escaped a high-profile
criminal trial that might have proved
devastating to the AidsVax project |
| Mission
accompliced: While
Heyward was still in government
employment, the company directed
journalists to him - as these media pack
pages show - giving themselves his
apparently independent endorsement. CDC's
prestige also helped the stock
price to soar following an October
1999 press announcement about the
agency's involvement. Heyward had
championed VaxGen's position for years,
as in a string of science papers |
|
| Animal
magic:
Ex-company chief Dr
Donald Francis claimed
chimps "are mirrors
of what happens in
humans." |
|
| Deep
shit:
Heyward. In a 49-second
interview with Deer, he
said:"I don't know
what you're talking
about." |
|
| For
journalism by Brian
Deer
on other topics, click here |
|
|
| Investor
lawsuits (1):
[pdf file] Following the federal
prosecution of the VaxGen vice-president
Dr William Heyward, the company was hit
on March 17 2003 with the first class
action lawsuit alleging securities
fraud. This complaint filed by
attorneys Milberg Weiss
in US District Court for Northern
California alleges that the company
concealed facts, made false
claims to cause VXGN stock to
trade at inflated prices, and made
misleading statements on trial data.
VaxGen rejected the action as
meritless |
| Investor
lawsuits (2):
[pdf file] A second, third and fourth
legal complaint, also rejected by VaxGen
Inc, were filed by law firm groups headed
by Green & Jigarjian,
Haldenstein Adler and Glancy
& Binkow. Others followed |
| Of chimps
and chumps:
Company claims in its IPO prospectus [pdf] as to why
they say they believed AidsVax would work
rested on antibodies in volunteers during
small-scale tests, and two unverifed
experiments described by AidsVax inventor
Dr Phillip Berman in
chimpanzees. Preparing a Sunday Times report for March
16 2003, Brian Deer raised with
VaxGen these experiments, carried out at
Genentech Inc before that company abandoned AidsVax as not
worthy of further development |
| AidsVax's
political history:
Given the controversies gathered on these
web-pages, one obvious question is: how
did this fiasco happen? In 1998,
New York Newsday reported on the
intensely political background to Aids
research in general and the quest for a
vaccine in particular. Legal process will
now try to resolve whether, against this
background, VaxGen misled
investors over the possibilities for
AidsVax. Many critics are now asking:
will the law succeed where science has
failed? |
|