‘Someone needs to save the Florey’: Famous institute at war with its scientists

The Florey, a 66-year-old institution named after Nobel laureate Howard Florey, had 43 group heads in July last year; six have now left, including one of its five research priority area heads. Among the exits are neuroscientist Ben Gu, who filed a Federal Court lawsuit alleging underpayment, a botched commercial agreement and unpaid royalties; Colin Masters, an Alzheimer’s researcher tipped as a potential Nobel laureate, who resigned after a research integrity investigation into colleagues; and Bradley Turner, a leading motor neurone disease scientist, who took legal action against the institute and then resigned.

Current and former staff describe a workplace that has turned ‘toxic’ under financial strain. “It wasn’t an exodus. This is a deliberate decapitation. They sacked all these people for spurious reasons,” said a former researcher. Another said: “There is a culture of paranoia.” A current researcher said they spent as little time as possible at the institute’s Melbourne headquarters. “It’s just such a horrible atmosphere,” they said.

The institute has been running multimillion-dollar deficits since 2022. A confidential staff presentation in February last year revealed a $4.5 million shortfall in 2024 and projected further deficits. Commercial income fell from $22 million in 2022 to $11 million last year. The institute acknowledged a 13 per cent reduction in full-time equivalent staff between 2022 and 2025.

The Florey’s management disputes the characterisation. “The Florey is deeply disappointed by these baseless claims,” a spokesman said. He said the institute was in a “financially sustainable position” and pointed to a $1.4 million surplus before depreciation and amortisation in 2025. “We’ve turned the corner,” he said. He said the broader sector faced a financial crisis.

Neuroscientist Ben Gu says the Florey offered to sell him a patent for $200,000. In an affidavit, he alleges the institute filed two patents based on his research, one without his knowledge. Gu says he agreed to buy the patent because he felt his future research would be compromised without it. “I had to pay a ransom so I could continue on my study,” he said.

The loss of lab heads has meant PhD students have been shuffled from team to team. Two sources familiar with the program said the Florey made its two student support positions redundant, while a current staff member said: “From what I’ve seen, I don’t think the Florey as an institution has done anything to treat students poorly.”

“We were told if they did not do the changes they would be closed within two to three years,” a former staff member said. With the sector’s peak body estimating 10 of Victoria’s 14 medical research institutes could close by 2030, Gu said he was concerned about the Florey’s future. “Someone needs to save the Florey,” he said.