The article appeared in the Proceedings of the National Academy of Sciences in October 1997. Describing the results as "encouraging news," the NIH issued a news release that credited Gallin and his lab for leading the research. At the company's request, Gallin said, the release also cited Cell Genesys for providing the technology.
Gallin made between $132,700 and $319,776 from Abgenix consulting fees and stock-option proceeds from 1997 through 2002, according to his yearly income reports. (He reported payments in ranges, not exact amounts.)
Cell Genesys owned Abgenix when Gallin was hired and held a majority stake in the subsidiary until July 1998, records show. As of last month, Cell Genesys maintained a minority position.
Gallin also became a shareholder in Cell Genesys in 1999, but for two years he did not disclose the holding on his annual financial reports. "It was an error," Gallin said. He sold shares in Cell Genesys last year for $15,000 to $50,000, according to his income report.
In written responses to questions from the Los Angeles Times, Gallin said that when he was hired to consult in 1997, "I was assured by Abgenix staff that Abgenix was an independent company." He added, "I did not consult for Cell Genesys."
In March 2000, Gallin acknowledged the relationship between the two companies. He filed a recusal, saying that "since Abgenix is partially owned by Cell Genesys, I have been advised that an activity with these outside organizations may present an actual or the appearance of a conflict of interest."
Regarding Cell Genesys' requests that it be cited publicly as the contributor of the gene-transfer technology used by his NIH lab, Gallin said that he deferred to his deputy, who was the first-named author on the article.
"I had no involvement other than the first author informed me that this was to be done," Gallin said.
He said agency leaders approved his consulting and stock ownership.
"I was very careful to solicit advice from NIH leadership as to whether or not my accepting the position of serving on the Abgenix scientific advisory board was a conflict that should be avoided," said Gallin, 60, who arrived at NIH in 1971 after graduating from Cornell University Medical School.
Gallin said nearly all of his other investments in biomedical companies were initiated by a financial advisor "in my wife's name, without her or my consultation."
