The Supreme Prosecutors’ Office Special Investigation Division (SID) yesterday closed its investigation into Yu Chang Biologics Co (宇昌生技股份有限公司), now known as TaiMed Biologics Inc (中裕新藥股份有限公司), clearing former Democratic Progressive Party (DPP) chairperson Tsai Ing-wen (蔡英文) of any wrongdoing.
The SID launched its investigation during the presidential campaign after Chinese Nationalist Party (KMT) lawmakers accused Tsai of manipulating investments by the National Development Fund (NDF) in TaiMed when she was vice premier in 2007. Tsai served as chairperson of the biotech company for several months after she stepped down as vice premier in May 2007.
The SID said Tsai did not embezzle any money in the case or abuse any funds. All the money in the National Development Fund’s investment in TaiMed was legal and clear, it said.
Photo: CNA
The SID investigated Taiwan Biopharmaceuticals Co (南華生技), which applied for National Development Fund support in 2005 and 2007, and TaiMed Biotech Fund, which applied for funding in 2007 and 2008.
Taiwan Biopharmaceuticals was to be a pharmaceutical company founded in Taiwan by Nancy Chang (唐南珊), chairperson of Tanox — a US-based biopharmaceutical company — and then-Euroc Venture Capital Co chairman Kao Yu-jen (高育仁) for the research and development of a drug known as TNX-355.
TNX-355 is an anti-AIDS drug that may prevent HIV from breaching the immune system.
The SID investigation clarified why the National Development Fund refused Taiwan Biopharmaceuticals’ TNX-355 funding request, but provided funding to Yu Chang, which was importing and developing a similar drug from the US drug giant Genentech and later acquired Tanox in 2007.
The SID said there was no evidence that the National Development Fund’s decision resulted from external factors and there was no evidence that senior government officials lobbied for TaiMed.
Documents showed the fund’s decision not to provide support to Taiwan Biopharmaceuticals Co was because Tanox had been acquired by Genentech, and Taiwan Biopharmaceuticals Co did not clearly explain its future technology sources and the company’s development structure to the fund, the SID said.
The SID said that although both TaiMed and Taiwan Biopharmaceuticals Co planned to build plants and manufacture products in Taiwan, Taiwan Biopharmaceuticals Co’s plan was to manufacture 80 percent of Tanox’s orders, but TaiMed’s proposal was that TaiMed and Genentech cooperate to develop TNX-355 and that the new drug, if developed successfully, would be manufactured in Taiwan.
The SID said the Tsai family invested in TaiMed using their own money and that all the funding was clean.
The SID said it interviewed more than 30 people during the investigation, including former premier Su Tseng-chang (蘇貞昌), former Council for Economic Planning and Development (CEPD) chairpersons Ho Mei-yueh (何美玥) and Hu Sheng-cheng (胡勝正), and Yu Chang funders David Ho (何大一), an AIDS expert, and Chen Lan-bo (陳良博), a Harvard University professor.
The SID said Hu, who may have violated laws regarding the private-public boundary, was sent to the Taipei District Prosecutors’ Office for investigation.
Hu served as chairperson of TaiMed after leaving his post at the council.
The SID also sent former National Development Fund deputy executive director James Ho (何俊輝) to the Control Yuan for investigation because it said he had inappropriately discussed Yu Chang’s proposal at Tsai’s residence and office.
In a press release, Tsai said she has always been honest about her role and involvement in Yu Chang Biologics, which she said was a collaboration between the administrative and legislative branch to promote development of Taiwan’s biotechnology industry.
However, she said the KMT administration used the case as a political tool during the presidential campaign, a move that not only tainted the reputation of several renowned scientists, but also hurt the development of the sector.
“While the [SID’s] decision has proven the innocence of the people involved, it would be very difficult for me to say that I’m happy with the results,” Tsai said.
Tsai said she was not surprised by the findings, adding that she hoped the case would be an example for elections in the future.
“We hope the mud-slinging tactics will stop right here and the national leader will no longer employ government agencies for political gain,” Tsai said.
Additional reporting by staff reporter Chris Wang
EXPRESSING GRATITUDE: Without its Taiwanese partners which are ‘working around the clock,’ Nvidia could not meet AI demand, CEO Jensen Huang said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and US-based artificial intelligence (AI) chip designer Nvidia Corp have partnered with each other on silicon photonics development, Nvidia founder and CEO Jensen Huang (黃仁勳) said. Speaking with reporters after he met with TSMC chairman C.C. Wei (魏哲家) in Taipei on Friday, Huang said his company was working with the world’s largest contract chipmaker on silicon photonics, but admitted it was unlikely for the cooperation to yield results any time soon, and both sides would need several years to achieve concrete outcomes. To have a stake in the silicon photonics supply chain, TSMC and
SILICON VALLEY HUB: The office would showcase Taiwan’s strengths in semiconductors and artificial intelligence, and help Taiwanese start-ups connect with global opportunities Taiwan has established an office in Palo Alto, one of the principal cities of Silicon Valley in California, aimed at helping Taiwanese technology start-ups gain global visibility, the National Development Council said yesterday. The “Startup Island Taiwan Silicon Valley hub” at No. 299 California Avenue is focused on “supporting start-ups and innovators by providing professional consulting, co-working spaces, and community platforms,” the council said in a post on its Web site. The office is the second overseas start-up hub established by the council, after a similar site was set up in Tokyo in September last year. Representatives from Taiwanese start-ups, local businesses and
‘DETERRENT’: US national security adviser-designate Mike Waltz said that he wants to speed up deliveries of weapons purchased by Taiwan to deter threats from China US president-elect Donald Trump’s nominee for US secretary of defense, Pete Hegseth, affirmed his commitment to peace in the Taiwan Strait during his confirmation hearing in Washington on Tuesday. Hegseth called China “the most comprehensive and serious challenge to US national security” and said that he would aim to limit Beijing’s expansion in the Indo-Pacific region, Voice of America reported. He would also adhere to long-standing policies to prevent miscalculations, Hegseth added. The US Senate Armed Services Committee hearing was the first for a nominee of Trump’s incoming Cabinet, and questions mostly focused on whether he was fit for the
SHARED VALUES: The US, Taiwan and other allies hope to maintain the cross-strait ‘status quo’ to foster regional prosperity and growth, the former US vice president said Former US vice president Mike Pence yesterday vowed to continue to support US-Taiwan relations, and to defend the security and interests of both countries and the free world. At a meeting with President William Lai (賴清德) at the Presidential Office in Taipei, Pence said that the US and Taiwan enjoy strong and continued friendship based on the shared values of freedom, the rule of law and respect for human rights. Such foundations exceed limitations imposed by geography and culture, said Pence, who is visiting Taiwan for the first time. The US and Taiwan have shared interests, and Americans are increasingly concerned about China’s
RSS