Breakdown of projected spending by the California stem cell agency CIRM graphic |
California's stem cell research effort
appears to be down to its last $468 million after nearly 10 years and
630 awards to scientists and their institutions.
Nearly half-a-billion dollars sounds like a lot, but when grant rounds hit $70 million, as is expected in
the Alpha stem cell clinic round later this summer, the money
vanishes quickly.
A caveat does exist on the $468 million
figure. It does not include $409 million for award rounds approved
only in concept by the stem cell agency's governing board. The agency has not yet solicited
applications for those rounds. Its governing board, at any time,
could cancel those proposed rounds.
In 2004, the agency started with $3
billion but really did not get rolling until 2007. Funds for new
awards are scheduled to run out sometime in 2017. The agency has been
working on plans for future financing, which may be discussed at
Thursday's governing board meeting in San Diego. At least the agenda
contains an item called “finance update.”
The latest figures on the agency's
research spending are contained in a presentation for the meeting by
Patricia Olson, executive director of scientific activities and one
of the veterans of the agency.
Under current funding plans, the
presentation shows that 38 percent of the agency's research funding
will go for “development and clinical trials” compared to 15
percent for basic research. Development and clinical trials is
defined as “preparation for and conduct of clinical testing of stem
cell-based therapeutic candidates, safety and proof- of–concept in
humans” and “infrastructure for clinical applications of cell
therapies.”
Readers should be aware of some
additional caveats on the charts in the presentation. They show
$1.869 billion awarded by the agency. However, the CIRM Web site shows $1.784 billion awarded, an $85 million difference.
A presentation chart labeled “future
funding” shows $467.9 million potentially available, meaning that
no RFAs have been issued in those areas. But another chart apparently
based on board decisions last December and called 'future funding
approved” shows the same figures plus additional sums for a total
of $664.8 million. We are querying the agency concerning the figures.
A separate question late last week
generated another perspective on research spending in relation to
administrative and other costs. Kevin McCormack, senior director for
public communications, replied in an email that the agency is expected to spend
$2.746 billion for research and facilities (buildings and
laboratories) during its current projected lifetime. He said $180
million is allotted for operational and grant administration
expenses. Legal expenses are expected to run at $26.9 million with
$12.5 million having been spent through April of this year.
By law, the agency can spend only 6
percent of the amount of the awards for administrative expenses.
Legal costs have no cap.
Another $47.1 million has been budgeted
for “capitalized interest,” although total interest costs are
expected to be in the neighborhood of $3 billion or so. That will be
paid by through the state budget. The agency operates on money
borrowed by the state (bonds). The interest costs are associated with
the bonds.
I actually count $876.5 million to spare if you include the "concept approved" with the unallocated. That could be plenty to achieve some success in a patient, if the agency would just stop spending until the new president offers his strategic vision.
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