Financial Times 31-03-2001

British Biotech severs links with HLS 

British Biotech yesterday became the first  significant  customer
of  Huntingdon  Life  Sciences to sever its relationship with the
troubled   drug-testing   company   after   being   targeted   by
anti-vivisectionists.  

Its move follows the withdrawal of support from bankers,  brokers
and finally  marketmakers  for  the  Cambridgeshire-based  animal
testing company.  

In  a  letter  sent  yesterday  to Stop Huntingdon Animal Cruelty
(Shac),  British Biotech said it had "terminated all links"  with
HLS  as of March 30.  "In June 2000,  British Biotech decided not
to place any  further  research  projects  with  HLS,"  said  the
letter, signed by Eliot Goldstein, its chief executive.  

"Research projects initiated prior to that decision have now been
terminated." 

Greg  Avery  of  Shac  said  British  Biotech  had  been "heavily
targeted"  by his  organisation  over  the  past  weeks.   It  is
understood the company has received a barrage of hate e-mails and
that campaigners have protested outside its Oxford offices.  

"This is the first premier customer of HLS to withdraw,"  said Mr
Avery.  He said Shac was gearing up to target other customers  of
the  company,  including  Novartis and Roche of Switzerland,  and
Bayer of Germany.  "Anybody who is a customer of HLS is going  to
be  in  the firing line,"  said Mr Avery.  "And no customers,  no
HLS.  It's as simple as that." 

Industry observers said they were appalled at the latest turn  of
events.   Companies were obliged by law to test drugs on animals,
they said.  They defied campaigners to forswear the  use  of  any
pharmaceutical product, which had all been tested on animals.  

On Wednesday,  HLS's two marketmakers, Winterflood Securities and
Dresdner  Kleinwort  Wasserstein,  stepped  down,  depriving  the
company   of   its  normal  share  price  setting  mechanism  and
potentially marking the end of its public-company status.  

Jack Straw,  the home secretary,  this week accused the financial
services   sector   of   undermining   the   fight   against  the
anti-vivisectionists'  campaign to close HLS down.  He  published
security  advice  for  managers and employees of medical research
companies who might  be  targeted.   He  also  promised  to  push
through amendments to legislation to make it easier to crack down
on animal rights campaigners.  

British  Biotech  and HLS shares were both unchanged yesterday at
21p and 4 1/2p respectively.