DIRECTORS of British Biotech, the troubled flagship of the British biotech industry, face an inquiry by the House of Commons science and technology committee tomorrow, writes Chris Koenig.

The committee's quizzing of the Cowley-based company - which is already under investigation by the London Stock Exchange, the US Securities and Exchange Commission and drug regulatory authorities - follows whistle-blowing allegations from Andrew Millar, former head of clinical research.

Dr Millar was sacked for telling investors Perpetual, of Henley, that directors made over-optimistic claims for the prospects of drugs in development.

Now Dr Millar is taking the firm to an industrial tribunal for unfair dismissal, and British Biotech is suing him for breaching confidentiality.

The MPs plan to produce a full report on the company later in the summer in a bid to rebuild confidence in the biotech industry.

They are also planning to talk to Perpetual, which owns 9.5 per cent of British Biotech.

British Biotech chief executive Keith McCullagh, who has announced that he will leave the company in September, will also be questioned by the committee.

MPs are acting fast in order to gain possession of information before legal action between those concerned gets under way. Their objective is to identify problems and pave the way for new laws to prevent them occurring again in the industry.

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