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...face of expensive failure after failure. None of this is compatible with price controls." But no one really knows how the money is spent. Indeed, the industry has refused to open its books to government auditors and once waged a nine-year legal battle with the General Accounting Office (GAO), Congress's investigative arm, to keep the information secret. Congress could subpoena the information but has refused to do so, in no small part because of the power of the pharmaceutical industry lobby...

Author: /time Magazine | Title: Why Drugs Cost So Much / The Issues '04: Why We Pay So Much for Drugs | 2/2/2004 | See Source »

...headed by Republican Senator Connie Mack of Florida, summed it up: "The Federal Government, mainly through the NIH, funds about 36% of all U.S. medical research ... Of the 21 most important drugs introduced between 1965 and 1992, 15 were developed using knowledge and techniques from federally funded research." A GAO report last year on Taxol, which had worldwide sales of $6.2 billion from 1998 to 2002, noted, "Through a collaboration with NIH, [Bristol-Myers Squibb] benefitted from substantial investments in research conducted or funded by NIH." The collaboration "provided the company with research results that enabled [Taxol] to be quickly...

Author: /time Magazine | Title: Why Drugs Cost So Much / The Issues '04: Why We Pay So Much for Drugs | 2/2/2004 | See Source »

After U.S. immigrant Gao Zhan was arrested while visiting Beijing with her husband and son in 2001, her conviction on charges of spying for Taiwan became an international incident. Human-rights groups trumpeted her cause and U.S. President George W. Bush complained to then Chinese President Jiang Zemin. A few days before U.S. Secretary of State Colin Powell landed in Beijing for a visit in July 2001, the sociologist was released and returned to a hero's welcome in Washington...

Author: /time Magazine | Title: Double Cross? | 12/1/2003 | See Source »

...officials may now be regretting their efforts on Gao's behalf. In a Virginia federal court last week, she pleaded guilty to illegally exporting to China hardened microprocessors, which have military applications. Gao admitted to using a number of front companies and an assumed name ("Gail Heights") to buy 80 chips from a Massachusetts supplier, which she then sold to the Nanjing Research Institute of Electronics Technology, one of the top designers of radar systems for China's military. Under her plea agreement, Gao agreed to forfeit $505,000 she earned in the sales and was convicted of tax evasion...

Author: /time Magazine | Title: Double Cross? | 12/1/2003 | See Source »

...official at the U.S. Attorney's office in Virginia, which prosecuted Gao, told TIME that Gao hadn't violated any espionage law. In a statement published in Chinese, Gao denied that she ever spied for Taiwan or China. "I never planned to do anything to support the Chinese government and never thought of harming the U.S. government," she wrote, adding bizarrely that her "dream" was to host a radio talk show in China. Genuine human-rights activists find a lesson in the scandal. Says Xiao Qiang, the former executive director of New York-based Human Rights in China, which lobbied...

Author: /time Magazine | Title: Double Cross? | 12/1/2003 | See Source »

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