The Connaught Medical Research Laboratories, owned by the University of Toronto, is the first acquisition of the new Canada Development Corp (CDC).
The acquisition, announced yesterday, guarantees continuation of the laboratories' work in the fields of public health, research and the manufacture of biological products for humans and animals. It also ensures that it will always remain under the control of Canadians and operate in close collaboration with the university.
A detailed agreement based on the purchase offer is being drawn up by the university's board's of directors and should be completed in two or three weeks, according to John Sword, the university's acting president. He said the price could not be finally settled until sales figures are known for the fiscal year ending June 30.
The CDC was set up last year by the federal government as a multi-billion dollar corporation to aid the growth of Canadian-owned growth industries.
Sales of biological products, principally insulin, which are marketed in 96 countries, have remained between $11 and $12 million for the past two or three years.
It is felt by the university that under different ownership, Connaught will be able to compete more aggressively with other corporations in the same field.
CDC has also made proposals to the federal government for its four Crown corporations, Polymer Corp.,. Panarctic Oils Ltd., Eldorado Nuclear Ltd., and Northern Transportation Ltd. These proposals are still being considered by the government.
The CDC's aim is not to bail out struggling Canadian companies about to be sold to foreigners unless it regards them as profitable, but plans to become involved in areas of growth opportunities, oil and gas, health care, petrochemical-based industries, mining, pipelines and related northern transportation, and venture capital, or merchant banking, particularly