The founding members of DirectGene, Inc. include eight University of Virginia faculty members and one University graduate student. Four faculty members and one University graduate student each owns less than three percent of the equity in the company. The remaining four faculty own a total of ll.6 percent in the company. Under the Virginia Conflict of Interests Act, the University may enter into a research contract with DirectGene, Inc. without placing these faculty members in violation of the Act, if the Board of Visitors approves the conflict created by their ownership in excess of three percent. The research contracts would help fund research into adenovirus tissue specific expression for cancer and bone repair, which has great potential for patient treatment.
Fiscal impact is negligible, at worst.
Inc. Therefore, major breakthroughs could result in significant revenue gain for the University. It is recommended that the Board of Visitors approve the Conflict of Interest and enter into the proposed contract for developing adenoviral gene therapies for cancer and bone repair. The Medical Center prepares a financial report and reviews it with the Executive Vice President and Chief Operating Officer before submitting the report to the Health Affairs Committee of the Board of Visitors. Since admissions are down, we completed a comparison of our market share for the Medical Center for calendar year 1995 to 1999, and have concluded that overall market share is flat to slightly increased. This positive trend contributes to our efforts to lower costs.