A decision to transfer 30 Lower Hutt-based scientists from Callaghan Innovation's carbohydrate chemistry group (CCG), which works on drugs for cancer and other diseases, to Victoria University over Otago was ''all but signed off'', Dr Clark said.
However, a spokesman for Callaghan Innovation said it was in negotiations with Victoria University, but a final decision was yet to be made.
Dr Clark said given the work the scientists were doing, Otago University was in a better position to take them on, along with $20 million of research funding over three years, he said.
''The natural home of these scientists is Otago. The clinical environments available at Otago University are only matched by Auckland.''
The decision was yet another ''blow'' to research capability connected to the South, and ''hot on the heels of the recently announced plan to transfer 82 collaborating scientists away from the Invermay AgResearch site in Otago'', Dr Clark said.
A spokesman for Science and Innovation Minister Steven Joyce said he understood a decision was yet to be made on the CCG.
''It is important to note that the CCG is, and will remain, based at Gracefield in Lower Hutt regardless of which university provider it transfers to, and it would continue to be collaborate closely with all its current research partners,'' he said.
A spokesman for Callaghan Innovation said it was negotiating a possible transfer of its CCG to Victoria University, but a final decision was yet to be made.
It had had ''conversations'' with a number of ''possible receiving organisations'' and both Otago and Victoria were ''outstanding'' candidates to take on the team.
However, there were ''some advantages'' to affiliating with a Wellington-based institution.
The transfer of the research team comes after Callaghan Innovation announced this year it would be focusing on ''near-to-market research''.
Otago University declined to comment, deputy vice-chancellor, research and enterprise, Prof Richard Blaikie saying it was a ''commercially sensitive matter''.
