Wednesday, November 26, 2014

Economic Action Plan? Government nets $205,000 for a $50-million asset

Merck announced it will pay $50 million for commercial rights to manufacture and develop the vaccine, invented at the Canadian federal government’s National Microbiological Laboratory in Winnipeg.

How is this a commercial success for Canadians?  A US company that is essentially acting as a broker has scored a 244 times asset gain by flipping a Canadian invention to drug giant Merck for $ 50 million. Taxpayers got $205,000.

Surely, had the government lab that made the discovery been allowed to run and licence that patent, rather than PWGSC, I am sure they could have funded themselves for many years and still it would have been a bargain.

Why do we pay managers and executives to manage these things in the first place? That amount might not cover a single executive for a year. I hope they recoup some of it by divesting one executive.