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{0 OCT.14 1980

   
 

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PUBLIC K
RESOURCES We Ce OF THe pres
JAMES F. HENRY

PRESIDENT

9 October 1980

Joshua Lederberg, Ph.D.
President

The Rockefeller University

East 66th Street at York Avenue
New York, New York 10021

Dear Josh:

Since our meeting in May regarding cooperation between the Drug and
Vaccine Development Corporation (DVDC) and The Rockefeller University,
we have been actively pursuing implementation of the concept. Your
suggestions at the May meeting regarding the content of institutional
agreements have proved to be eminently sound.

I want to take this opportunity to outline the basic parameters of
our discussion in May as regards the terms of an agreement between
the DVDC and The Rockefeller University. While we, of course, would
not want to implement such an agreement before the DVDC is fully tax-
exempt and adequately funded, both expected in early 1981, we would
welcome an opportunity at this time to develop a letter of agreement
with your management which could come into effect at this time.

Based on our discussion, the agreement would involve the transfer to
the DVDC of promising research discoveries related to diseases of the
developing world, with particular emphasis on, but not limited to,

the work of Dr. Cerami's laboratory. The diseases to be covered
would include those specified by the UNDP/WHO/World Bank sponsored
Tropical Diseases Research and Training Program (TDR) and the Diar-
rheal Diseases Program, as well as other diseases representing major
causes of morbidity and mortality in the developing world. The latter
diseases would be specified in the DVDC/University agreement.

The DVDC, in cooperation with research laboratory directors, would
monitor research results for their market potential, and assume the
costs of aggressively patenting and licensing such discoveries. Sub-
sequent product development and sales would result in royalties which
would be split between the DVDC and The Rockefeller University as fol-
lows: for sales to or in developing countries, 75% to the DVDC and

25% to the University; for sales in developed countries, 25% to the
DVDC and 75% to the University. Definition of "developed" and "devel-
oping" countries would follow guidelines of the World Bank, i.e.,
countries so defined in the World Bank's annual report based on

per capita income. Royalties division between the University and

its researchers will be negotiated separately by those parties.

Continued...

680 FIFTH AVENUE, NEW YORK, NEW YORK 10019 = (212) 397-0085
Joshua Lederberg, Ph.D. -2- 9 October 1980

As a result of this agreement, The Rockefeller University research
scientists will be eligible to apply for research grants distributed
through the DVDC.

I look forward to an opportunity to discuss these parameters with you
at your earliest convenience.

Sincerely,

orto te

—>

James F. Henry
President

JFH/emg