Taxol was used to enhance the effectiveness of a second cancer drug, developed by Schlom at the NIH.
Schlom's twin roles -- as Cytoclonal consultant and NIH leader -- posed a potential conflict of interest because the study results could help create more demand for Taxol.
Schlom, in written comments to the Los Angeles Times, said all of his consulting work was done properly, in compliance with NIH rules.
He said he had advised companies "based on my general knowledge and expertise in immunology."
Schlom joined Cytoclonal's scientific advisory board in 1992.
"At our request, the scientific advisors review and evaluate our research programs and advise us with respect to technical matters in fields in which we are involved," Cytoclonal said in various public financial reports, starting in July 1996.
The company repeatedly touted its development of Taxol in news releases.
The company sought to produce Taxol through genetic engineering and fermentation, instead of deriving the drug's active ingredient from the bark of the rare Pacific yew tree.
In June 1998, Cytoclonal entered a licensing and research agreement with Bristol-Myers Squibb Co., the pharmaceutical giant that markets Taxol. Cytoclonal announced that its deal with Bristol-Myers was potentially worth "up to $50 million."
As recently as August 2001, the company, renamed as eXegenics, said that its development of Taxol was one of two projects "with the greatest potential for rapid commercial success."
The company has recently laid off most of its employees and abandoned all research, including the Taxol project.
"We're not seeking to develop it," said David E. Riggs, the company's new chief financial officer.
Schlom, 61, whose government salary is $180,400, has led the National Cancer Institute's Laboratory of Tumor Immunology and Biology since 1982. He supervises nine research groups seeking new ways to treat and prevent cancer.
According to its Web site, the laboratory investigates potential cancer-fighting vaccines. It examines substances, called antigens, that stimulate the body's production of antibodies. And lab researchers design and develop certain "monoclonal" antibodies that show promise in recognizing and targeting cancer cells.
During his decade of consulting for Cytoclonal, Schlom said he "was never involved in any conversations or provided any advice concerning Taxol."
