Stem Cell Snippets: Hanky-Panky to Jobs for Those Love Long Hours

Enviros Against Stem Cell Lab/Classroom Building -- An activist group and the city of Santa Cruz have blocked construction of an $80 million facility at UC Santa Cruz that would house stem cell research activities. A judge halted the project for environmental reasons. The four-story facility would include stem cell labs and service nearly 1,400-science students.

Scientific Integrity – The California stem cell agency has based many of its policies and rules on assumptions of nearly universal scientific integrity. Glenn McGee(see photo), writing in The Scientist and on the blog of the American Journal of Bioethics, indirectly questions those assumptions. He cites studies that show widespread hanky-panky in the authorship of peer-reviewed pieces, particularly in cases where senior researchers claim authorship even when they are marginally involved. McGee also has suggestions for reform. Interestingly, the entry point for his article is a matter that figured in the controversy over approval of a California stem cell agency grant to a subsidiary of the CHA Health Systems of South Korea.

Yolo Stem Cell Land Deal – Land developer Angelo Tsakopolous has shelved his land development deal that would have also established a stem cell research center in Northern California near UC Davis and Sacramento. Jeff Raimundo, a spokesman for Tsakopolous, told the California Stem Cell Report that the controversial proposal has been put off. California stem cell Chairman Robert Klein lobbied local government officials on behalf of the proposal, but they shied away from the effort. The concept of the plan was also supported by the International Stem Society for Stem Cell Research. Tsakopolous is a persistent man, however, and his proposal could well surface again in one form or another.

Stem Cell Lab Grants – On Oct. 2, the California stem cell agency will consider rules concerning administration of $222 million in grants for stem cell lab construction. The Facilities Working Group will take up the proposal prior to consideration by the CIRM Oversight Committee the next day.

NAS Stem Cell Meeting in California – Coming up Oct. 8-9 in Irvine, Ca., is a National Academy of Sciences conference called "Therapeutic Cloning: Where Do We Go From Here?" A host of top flight scientists are listed as speakers. The session will address such questions as sources of eggs and alternative methods of creating pluripotent cells.

Looking for Work? -- If you are interested in working across the street from the home field of the San Francisco Giants baseball team, CIRM is looking for a few good men and women. Jobs available at the agency include associate legal counsel, grants management specialist, paralegal and scientific officers.. Long hours are guaranteed. (CIRM headquarters is near the Giants field.)

Stem Cell Snippets: Drooping Support, Farmland, Goldstein's Views and CIRM Scholar

Declining Support for Stem Cell Research –- The Pew Forum for Religion and Public Life has released a public opinion poll that shows weakening support for stem cell research, dropping from 57 percent two years ago to 51 percent in August this year. It also showed that 55 percent of the public had heard little or nothing about stem cell research. The polling question involving support used the phrasing "destroying potential life." The results certainly would have been more negative if the word "potential" had been omitted. "Destroying life" is how many opponents view the issue. The "take-home" point? Support for human embryonic stem cell research is fragile and can easily be undermined by events ranging from a dubious experiment or result or perceived misconduct by those funding stem cell research.

ISSCR and Farmland –- Jesse Reynolds of the Center for Genetics and Society comments critically on the involvement of the International Society for Stem Cell Research in a land development proposal that also proposes the creation of a stem cell research nonprofit. You can read it here.

Stem Cells After Bush -- Lawrence Goldstein, director of stem cell research at the University of California at San Diego, was quoted on CNN Money.com concerning the future of federal funding for stem cell research after Bush. He said. "Personally, I think it's a mistake for the scientific community to assume anything about what the likely policy will be of a government that doesn't yet exist." He also said, "I would not build a business plan based on the assumption there will be federal funding for stem cell research." The article largely covered the perspective from business on stem cell research.

CIRM Scholar – A recent cover story in Nature magazine featured research by a CIRM scholar, Laura Elias at the University of California, San Francisco. She led a neural stem cell study that revealed a mechanism that may play a role in cancer. Elias is a neuroscience graduate student in the lab of senior author Arnold Kriegstein, director of UCSF Institute for Regeneration Medicine.

ISSCR Backs Controversial California Effort

The prestigious International Society for Stem Cell Research has stepped into the flap over a land development proposal in Northern California, endorsing the concept of a stem cell research facility linked to the plan.

California stem cell Chairman Robert Klein, who backs the proposal, said in an interview that it was the first time the society has taken such an action. The group represents 2,500 scientists and others in 47 countries.

In a July letter to Yolo County officials, George Daley, president of the ISSCR, said,

"There is a severe shortage of funds for bridging the gap between academic discovery research and industry-sponsored clinical development. This gap of funding is a harsh place where small firms struggling to bring regenerative medicine to patients receive very little support from government and/or private investors. The need for philanthropic support of medical research has never been more urgently needed than today. The substantial gift offered by the Tsakopoulos Family would create a Translational Medicine Development Fund to bridge the gap between basic research and tangible potential therapies and/or cures for seventy or more chronic diseases and injuries within the field of regenerative medicine.

"We also endorse this unique concept because it will bring international institutions together and create a critical mass of scientific research that will allow collaboration and progress in a way that has never been seen before. This exciting proposal would create a world class model for scientific research and collaboration that is the first of its kind.

"We strongly encourage you to study this concept as a part of a general plan to bring economic development to your county."

Klein and Angelo Tsakopolous, a Sacramento area land developer, are lobbying for a proposed 2,800-acre land deal near the capital that would also create a stem cell research center with a projected endowment of $200 million. Earlier this spring, Klein's private lobbying organization received a $125,000 contribution from Tsakopolous' company. Klein would head the research center.

Yolo County's elected supervisors shelved the plan at least temporarily in July.

Daley serves as an ad hoc membe of the California stem cell agency's grants review group and served on the advisory panel for its strategic plan. In June Klein was named to the ISSCR's advisory group.

The text of the ISSCR letter, which was provided to the California Stem Cell Report by Klein, follows in the item below.

Text of ISSCR Letter

Here is the text of the letter from the ISSCR concerning the Northern California county land development/research center proposal.

July 11, 2007

The Honorable Supervisor Mariko Yamada, Chair
Yolo County Board of Supervisors
625 Court Street, Room 204
Woodland, CA 95695

Dear Supervisor Yamada,

The International Society for Stem Cell Research (ISSCR), which represents over 2500 scientists, ethicists, and clinical researchers in the field of stem cell biology from 47 countries, heartily endorses the concept of an International Center for Regenerative Medicine at the Davis Ranch site, dedicated to the translational development of new therapies.

There is a severe shortage of funds for bridging the gap between academic discovery research and industry-sponsored clinical development. This gap of funding is a harsh place where small firms struggling to bring regenerative medicine to patients receive very little support from government and/or private investors. The need for philanthropic support of medical research has never been more urgently needed than today. The substantial gift offered by the Tsakopoulos Family would create a Translational Medicine Development Fund to bridge the gap between basic research and tangible potential therapies and/or cures for seventy or more chronic diseases and
injuries within the field of regenerative medicine.

We also endorse this unique concept because it will bring international institutions together and create a critical mass of scientific research that will allow collaboration and progress in a way that has never been seen before. This exciting proposal would create a world class model for scientific research and collaboration that is the first of its kind.

We strongly encourage you to study this concept as a part of a general plan to bring economic development to your county. We believe that stem cell research will inevitably spawn commercial interest and change the lives of your residents and millions of Americans who live with intense suffering and face premature death. We urge you to carefully consider this unique and innovative proposal to find therapies and/or cures to treat devastating illnesses and injuries.

Respectfully,
George Q. Daley, MD, PhD
President, ISSCR

Klein Rebuffed in Lobbying Effort for New Stem Cell Nonprofit

California stem cell Chairman Robert Klein -- and associates -- Tuesday failed in their initial efforts to secure a land use change that would have swapped Northern California farmland for a new, nonprofit stem cell research institute that Klein would have chaired.

The proposal was put off by Yolo County supervisors during an angry meeting, reported Mary Lynne Vellinga of The Sacramento Bee. However, the proposal is not likely to vanish. Its chief backer, developer Angelo Tsakopoulos, is a persistent businessman. The stem cell proposal was one of three land use proposals that the supervisors were considering. Vellinga wrote:

"Tuesday's vote shelves -- at least for now -- a proposal by Sacramento developer Angelo K. Tsakopoulos to build an incubator for stem cell research just south of Interstate 80 outside Davis, and to fund it with profits from the construction of an unspecified number of homes.

"The county has been considering inclusion of some 1,500 acres, about 60 percent of the land owned by Tsakopoulos, for an 'innovation corridor' targeting life science and biotechnolgy.

"A bevy of stem cell experts, researchers and accident victims in wheelchairs -- including Ms. Wheelchair California -- turned out Tuesday to support the idea.

"'With your approval, the suffering people would have hope,' said Roman Reed, who was paralyzed when he broke his neck playing football. A state law named after Reed sets aside money for paralysis research.

Robert Klein, chairman of the state-funded California Institute for Regenerative Medicine, also made an appearance. He has been working with Tsakopoulos to promote the idea of a center, which he plans to head.

The supervisors took pains to stress that they would love to see a stem cell research center built in Yolo County but don't support the idea of building housing on the valuable farmland next to the Yolo Bypass. “'The money (for the center) comes from building the houses; that's not something I can support in that area, no matter how much I care,' Thomson said.”

For more on this issue, see the Yolo item below. Searching on the label Yolo will also turn up additional items.

Klein, Chimeras and the Yolo Land Deal

In the eyes of some, the unusual lobbying by the chairman of the $3 billion California stem cell agency on behalf of an effort to swap farmland for a new, nonprofit stem cell research institute is not necessarily unethical or inappropriate.

No public hue or cry has erupted over the issue. Yes, two stem cell agency watchdogs have expressed dismay or outrage. One newspaper said Robert Klein should give up his state post if he continues to pursue the lobbying effort. But another good government advocate privately said he did not detect illegal or even unethical conduct.

So what's at stake here? One question centers on whether Klein has something to gain that conflicts or appears to conflict with his role as a state employee. Another question involves whether he is using inappropriately his position as chairman of the CIRM. Would he have been asked to lobby for the land deal if he were not overseeing the agency?

The answer to that question is: Probably not. Klein would be little more than another Darrell Issa if he were not the chair of CIRM's Oversight Committee. “Darrell who?” you might ask. Issa, like Klein, played a major role into a ballot measure that has had an enormous impact on California. In Issa's case, he financed, with $1.7 million of his own money, the effort that placed the gubernatorial recall on the 2003 ballot and sent Arnold Schwarzenegger to the state house. Issa was widely believed to be considering a run for governor. But today he remains an obscure California congressman.

Klein would have lapsed into similar obscurity without his high visibility post at CIRM. He now travels to Australia and Korea to hobnob with international stem cell scientists. He is profiled by Fortune magazine. He is an articulate, aggressive global salesman for human embryonic stem cell research.

But that is almost totally due to his state post. He heads his own private, national stem cell lobbying group in California, but that does not provide the prestige and power that accrues as the result of heading a concern that is giving away money this year at the rate of $29,000 an hour.

Tomorrow(7/12), Klein plans to bring his state-endowed prestige and power to bear on five Yolo County supervisors, some of whom have greater political ambitions and need to raise funds. Failure to act favorably on the 2,800-acre land use change could dry up some potential sources of funding, some of whom may well have ties to Klein, who is a prodigious fundraiser. Those considerations will certainly be going through the minds of supervisors as they hear him speak.

A spokeswoman says that Klein will not benefit financially from the deal that would make farmland along Interstate 80 between Sacramento and UC Davis available for development. In return, Yolo County, one of the top tomato producers in the nation, would be home to a stem cell research center with a $300 million or so endowment. Klein would chair the new institute. The Sacramento Bee reported that Klein is “cagey” about whether he would hold his state position at the same time. However, the proposed nonprofit would certainly look to CIRM for funding of at least some of its activities. Even if Klein has left CIRM by the time those grants are sought, he will still enjoy considerable, residual clout as the result of his CIRM connections. The situation is akin to those Pentagon officials who leave the government and go to work for enterprises seeking lucrative Defense Department contracts.

Klein is a multimillionaire real estate investment banker, who continues to operate his own business. He and Angelo Tsakopolous, the Sacramento developer and major political contributor seeking the land use change, go back a few years, but Klein's aides say they have never done business together. Klein's association with Tsakopolous has already proved beneficial. The developer's firm, AKT, gave $125,000 to Klein's lobbying group, Americans for Stem Cell Therapies and Cures, last April. If the Yolo deal is successful, it could lead to joint real estate work in the future. Tsakopoulos is a firm believer in building good relationships.

From Klein's point of view, he believes more research is better. To fail to bend his best efforts to promote the field and develop more resources would be to short change a campaign he has already devoted years to. Should he remain aloof from an ambitious project because of the tender sensitivities of some? No, he would answer. That's not the way to bring cures to millions of suffering people.

In stem cell circles, scientists talk of the “yuck factor” and chimeras, the mythological beasts composed of more than one animal. Some say that if a stem cell experiment creates such a creature and generates a “yuck” response, the experiment should be dropped.

Klein, who is a man of many parts, generates a “yuck” for his Yolo lobbying, his harshest critics say. We do not entirely disagree. His multiple roles raise questions about his primary priority. Serving as chairman of CIRM was perceived under Prop. 71 as a fulltime position complete with a $412,500 salary (which Klein to his credit does not take). Klein wrote substantial portions of that law. It is now time for him to respect its intent.

(Correction: An earlier version of this said CIRM was scheduled to approve grants at a rate of $54,000 an hour this year.)

The Bee Calls for Klein Resignation If He Continues to Lobby on Land Deal

The Sacramento Bee said today that California stem cell Chairman Robert Klein should resign from his post at the $3 billion state institute if he continues to lobby on behalf of a controversial Northern California deal that would swap favorable land use decisions for a private stem cell research facility.

The editorial noted that Klein's stem lobbying group, Americans for Stem Cell Therapies and Cures, earlier this spring received $125,000 from the Angelo Tsakopolous' land development company, which is seeking to convert farmland to commercial development. In return, a $200 millon stem cell nonprofit institute would be created at the location. The more than 2,000 acres is located on Interstate 80 between Sacramento and UC Davis.

The Bee wrote in an editorial:

"Klein says there's no connection between his efforts to retire campaign debt (owed by his lobbying group) and his support for the Yolo project, but it nonetheless creates an appearance of paycheck politics. If Klein wants to continue to promote the Yolo project or any project that could overlap with his duties as a state official, he needs to resign from CIRM. The sooner the better."

The newspaper said that Klein makes a "compelling case" for the type of research facility that would be built at the site by a nonprofit institute that would be headed by Klein. The Bee wrote,

"But if the case is strong, the multiple hats that Klein is wearing with this project are troublesome....He is cagey when asked if he would also continue to chair CIRM. There's the potential that the industries and researchers who would be part of this Yolo research center would also seek funding from the California institute, which would put Klein in a serious conflict of interest."

Yolo Stem Cell Proposal Attracts More Attention

A "farmland war," "unethical" – two of the descriptions emerging today in a fresh story about the Northern California land development/stem cell research project involving the head of the state's $3 billion stem cell agency.

CIRM Chair Robert Klein and Angelo Tsakopolous, a Sacramento area land developer, are lobbying for a proposed 2,800-acre land deal near the capital that would also create a stem cell research center with a projected endowment of $200 million. Earlier this spring, Klein's private lobbying organization received a $125,000 contribution from Tsakopolous' company. Klein would chair the proposed nonprofit.

In a story written by reporter Ralph Brave, the Sacramento News & Review today painted a bucolic picture of the development's location, which is hard on a very busy freeway just west of Sacramento. Brave wrote:

"This acreage has become the latest battleground in the ongoing war over the fate of Yolo County’s distinctive dedication to preserving farmland and open space. Although it’s just commenced, this particular battle’s mix of the area’s most powerful real-estate magnate, the head of the state’s stem-cell oversight committee, the re-evaluation of Yolo County’s General Plan governing development, and next year’s elections promises a prolonged, intense struggle that could determine much about the county’s and the region’s future."

The election issue involves at least the chair of the Yolo supervisors, a locally elected official who is seeking a seat in the California legislature. The dispute was characterized as a "farmland war" in a caption on a photo of a portion of the site.

Brave continued:

"Environmental attorney James Pachl told SN&R that Tsakopoulos’ 'proposal is an attempt to bribe the supervisors by offering to contribute to a fashionable charity in exchange for approval of AKT’s development project(AKT is Tsakopolous' company). Perhaps legal, but too unethical for most public officials to consider. The AKT property is valuable farmland, wildlife habitat and open space that should continue to be farmed.' A supporter of stem-cell research, Pachl expressed concern that 'the proposal will create a local political firestorm that will likely stop the project and damage the credibility of stem-cell researchers.'"

The newspaper also brought into its coverage another CIRM official, Claire Pomeroy, a member of the Oversight Committee and dean of the UC Davis School of Medicine.

Brave wrote that attendees at one dinner promoting the project included two Yolo supervisors, Klein and Pomeroy.

Brave said Pomeroy later told him that "it would not be 'appropriate to involve myself in land-use decisions.'"

Last Saturday, reporter Luke Gianni of the Woodland Daily Democrat quoted Pomeroy as saying,

"The concept of a research center for stem cells is a good one and something I support. A new research park in this region, in addition to the stem cell facilities we're currently building in Sacramento, could help complement the promising work our scientists are now doing in regenerative medicine."

Brave's story contained more details on financing the stem cell research facility, provided by Amy Daly, executive director of the Klein lobbying group, Americans for Stem Cell Therapies and Cures.

"Upon approval for residential and commercial development for some portion of the Tsakopoulos 2,800-acre property, 200 acres would be donated to a new nonprofit called Bridge to Cures. One hundred of those acres would be taken to a bank and used as collateral for a loan to finance the building of the research center and its labs. Part of the profits from the residential and commercial development would go into an endowment, to be used as loans, grants and other financing for biotech companies to advance stem cell and other biomedical discoveries into clinical applications."

Daly said the center's labs would be leased to for-profit companies. Earlier, she told the California Stem Cell Report that Klein would chair Bridge To Cures.

Size of the endowment has ranged from $50 to $400 million, depending on the size of the development that might be approved.

To see all the items on this subject, click on the label "yolo" below.

Klein Rep Says No Financial Ties in Land-Stem Cell Proposal

California stem cell Chairman Robert Klein, who owns a real estate development firm based in Palo Alto, is not financially involved in a land development proposal in Northern California that promises to create a stem cell research center, according to a Klein representative.

In response to questions from the California Stem Cell Report, Amy Daly, executive director of Americans for Stem Cell Therapies and Cures, Klein's private lobbying group, said:

"Bob Klein's company's is not at all involved in this project other than to allow Bob to donate his time to the endeavor. There is no monetary benefit for Bob in this project. He is not getting paid and there will be no financial (or other) benefit to his company as a result of this project."

She also said that CIRM is not connected with the proposal near Sacramento and is "completely separate." CIRM itself has had no comment on the plan. The agency said it knows nothing about it.

Daly's response came as the Center for Genetics and Society Friday published sharp criticism of the plan on its blog "Biopolitical Times."

Jesse Reynolds, project director on biotechnology accountability, wrote that the proposal raises a question of whether another stem cell research center is justified. He continued:

"The second issue is the egregious nature of Robert Klein's conflicting roles. His lobbying group gets a hefty donation, and his imprimatur hints that the new center would be a likely magnet for public financial support. And who knows if he's got his own finger in the pot, given that his business dealings are obfuscated via dozens of corporations and holding companies.

"Meanwhile, he sits as not only a public servant, but as one with significant influence over how billions of public dollars are spent. Although he's promised not to profit from biotech while he's chair of the state stem cell agency, does he consider an investment in the land development part of this vow? And how would the public ever know?

"Regardless, as we've said before, Klein needs to decide whether he is a lobbyist or a public official. He can't be both."

Daly said that Klein and Sacramento developer Angelo Tsakopolous met only recently. She said that they "have not worked on any project in the past."

She wrote,

"As I understand it, they met in January 2007 when they both were in Washington for inaugural activities. Both are strong supporters of Nancy Pelosi.

"Around that same time, Yolo County had put into their general plan a desire to have an economic development proposal. The Tsakopoulos family owns land there and they were hoping to leave some lasting legacy for the county beyond just immediate economic development.

"Bob and Angelo had dinner here in California upon their return and discussed the possibility of a Regenerative Medicine Institute in Yolo County. Angelo and his children were thrilled to have an opportunity to change the world much in the way we believe Proposition 71 will change it. As I mentioned in my email to you yesterday, we are hoping that this Regenerative Medicine Institute, funded by the soon to be formed non-profit, Bridge to Cures, will bridge the funding gap for translational medicine that currently exists and that CIRM has not yet addressed."

She said opponents are trying to stop the project, which will be discussed by Yolo County supervisors July 17, before it moves beyond the discussion stage.

See below for an information sheet on the Yolo stem cell proposal being circulated on behalf of the effort.

Text on Development Plan Involving Klein

Here is the verbatim text of information supplied on behalf of a Northern California land development/stem cell research proposal involving California stem cell Chairman Robert Klein. It was supplied by the Sacramento political consulting and PR firm of Townsend Raimundo Besler & Usher.


Innovation Corridor

California and the nation face a serious shortage of comprehensive sites devoted to cutting-edge biomedical research, life science incubators and allied private enterprise support for university-related research and therapy development. A group of researchers, civic leaders and private entrepreneurs are working on a plan to provide the physical and economic infrastructure to support an international research center for regenerative medicine and biotechnology on Interstate 80 between Mace Boulevard and E. Chiles Road interchanges.

Life and Health Sciences – Leading California Into the Future

California is the world leader in life and health sciences and technological research. Biotechnology was born in California and today is one of the state's most important economic engines. A quarter of a million Californians work for more than 2,700 companies, making biotech a larger employer than the computer, aerospace, telecommunications or motion picture industries.

Demand for Research and Development Centers is Growing

Advanced R & D in the biosciences will be the most significant contributor to the well-being of Americans and to the nation's economic well-being for decades. That promise can only be realized, however, if researchers, civic leaders, universities, government officials and private entrepreneurs work together to overcome serious financial barriers and a shortage of sites where new therapies can be discovered.

Californians recently voted to make $3 billion available for stem-cell research but only $300 million for construction of sophisticated facilities to carry out that research. A leading California life sciences consortium recently found that high costs and a scarcity of approved R & D sites is a growing problem. It urged leaders "…to cooperate to identify areas where facilities (e.g., bio-research parks) can be located, to secure those areas, to provide incentives for development and for companies to locate there, and, most importantly, to maintain a level of ongoing support to keep these areas vital."

Innovation Campuses can Provide Infrastructure to Sustain R&D

Operational mixed-discipline research centers, life science incubators and therapy development centers cannot support themselves. Many potential tenants are start-up companies or non-profits. Most require venture capital, government subsidies, non-profit foundation grants and other support to provide working capital needed to carry a new medical therapy from validated discovery to clinical trial.

Regional Leaders Working with Yolo County to Identify Potential Innovation Corridor

The Yolo County Board of Supervisors has identified the Interstate 80 corridor between East Chiles Road and Mace Boulevard as a planning study area for a university-related research and development corridor. Regional leaders are working with the county to explore a practical plan to support the county's goal of a local environmentally sensitive, university-related R&D site.

Innovation Place Foundation to Provide the Incubator

Governed by a panel of leading local and international researchers, entrepreneurs and university representatives, an Innovation Place Foundation would develop a not-for-profit regenerative medicine and biomedical research incubator; support allied research in clean energy, agriculture and environmental sciences; and administer a for-profit mixed-discipline research park.

The foundation would operate with more than $200 million to provide working capital for research and therapy development advancing validated discoveries to clinical trials. Financial support would come from a share of the proceeds of ancillary and adjacent commercial and residential development that would follow SACOG Blueprint guidelines, provide a jobs-housing balance and protect agriculture and open space in step with Yolo County's heritage.

Klein and His Role on Proposed Stem Cell Research Center

The Northern California land deal/stem cell research center involving California stem cell chairman Robert Klein calls for him to head a new nonprofit group that would be endowed by the family of developer Angelo Tsakopolous.

In response to a query from the California Stem Cell Report, Amy Daly, executive director of Klein's lobbying group, Americans for Stem Cell Therapies and Cures, said,

"As you may be aware, there is a gap in funding in the life of therapy development where many good ideas for therapies and cures die for lack of funding. It is this funding gap that we hope to address with this project. California Institute for Regenerative Medicine has focused (and we believe will continue to focus) much of ithat come from early research and safely see them to the point in time where they are picked up by biotech and VCs (venture capitalists).

"We hope to inspire international collaboration by having board members from world-class institutions from around the world. These institutions, as well as UC Davis and other California institutions, will also have the opportunity to have satellite lab space near the incubator space that we are building for the therapy development."

She continued:

"This project will create a non-profit to bridge that funding gap and we believe it will be called Bridge to Cures. The family donating the land and endowment funds, the Tsakopoulos family, have asked Bob to chair the board of Bridge to Cures. The structure of the board will be similar to the Independent Citizens Oversight Committee with the addition of Angelo and Kyriakos Tsakopoulos and Eleni Tsakopoulos-Kounalakis. We expect that the board will choose to have working groups make recommendations to them similar to the working groups of California Institute for Regenerative Medicine. We hope to inspire international collaboration by having board members from world-class institutions from around the world. These institutions, as well as UC Davis and other California institutions, will also have the opportunity to have satellite lab space near the incubator space that we are building for the therapy development."

Daly's full statement is below.

Amy Daly Statement on Bridge to Cures

We queried Amy Daly, executive director of the Americans for Stem Cell Therapies and Cures, concerning the proposal for a land development project and stem cell research center near Sacramento. Here is her response verbatim.

Bob and Angelo had been spending time talking about this project to fund therapy development around the same time that Americans for Stem Cell Therapies & Cures was holding a fundraising dinner at the home of Robin and Marsha Williams to retire the outstanding campaign debt. The suggested donation for a couple to attend this dinner was $125,000. Angelo is very supportive of stem cell research (as you can see by his incredible generosity with this project) and so he and his wife attended this dinner.

As far as the project referred to in the Sacramento Bee today, there are
many details that were discussed but not included in the article.

"No one tried to strangle Herceptin, but it came near to starving in the
cradle."

As you may be aware, there is a gap in funding in the life of therapy
development where many good ideas for therapies and cures die for lack of
funding. It is this funding gap that we hope to address with this project.
California Institute for Regenerative Medicine has focused (and we believe
will continue to focus) much of its funding to fill the funding gap in early
research. We hope to take the ideas that come from early research and safely
see them to the point in time where they are picked up by biotech and VCs.
An example of this funding gap is found in the history of the development of
Herceptin, as noted here:
http://www.nytimes.com/books/98/09/20/reviews/980920.20henigt.html?_r=1&oref
=slogin.

Without philanthropic financial support for Herceptin during that funding
gap, it would not have been developed to the point where Genentech picked it
up. It is now the number one choice for the treatment of certain types of
breast cancer and saves countless lives.

This project will create a non-profit to bridge that funding gap and we
believe it will be called Bridge to Cures. The family donating the land and
endowment funds, the Tsakopoulos family, have asked Bob to chair the board
of Bridge to Cures. The structure of the board will be similar to the
Independent Citizens Oversight Committee with the addition of Angelo and
Kyriakos Tsakopoulos and Eleni Tsakopoulos-Kounalakis. We expect that the
board will choose to have working groups make recommendations to them
similar to the working groups of California Institute for Regenerative
Medicine. We hope to inspire international collaboration by having board
members from world-class institutions from around the world. These
institutions, as well as UC Davis and other California institutions, will
also have the opportunity to have satellite lab space near the incubator
space that we are building for the therapy development.

This is an incredible opportunity to help further stem cell research and
mitigate human suffering and I am proud that our non-profit has chosen to
support this effort.

Klein Involved in Major Land Deal-Stem Cell Research Center Proposal

California stem cell chairman Robert Klein and a prominent Sacramento area land developer are involved in a proposed 2,800-acre land deal near the capital that would also create a stem cell research center with a projected endowment of $200 million.

Reporter Mary Lynne Vellinga broke the news in The Sacramento Bee this morning. The developer is Angelo Tsakopolous, who has been active in Democratic fundraising and a major Sacramento developer for decades.

Tsakopolous' company, AKT Development, also contributed $125,000 on April 17 to Klein's private stem cell lobbying group, Americans for Stem Cell Therapies and Cures, which grew out of the Prop. 71 campaign committee. The contribution was not reported in The Bee story.

The Bee story "raises serious and troubling questions, some of which originate from Bob Klein's dual role as chairman of the ICOC and a stem cell political advocacy," said John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumers Rights. He told the California Stem Cell Report:

"I've said repeatedly that the dual role is inappropriate and word of this deal and the suggestion that Klein is involved in it while taking contributions is even more troubling."

Klein's activities with the lobbying group have stirred other concerns in the past about conflicts in the case of a man to heads a state agency giving away $3 billion in public funds. (See below for links to previous items on this subject.) Klein still presides over his own development firm, which is based in Palo Alto at the same address as the lobbying group.

The stem cell agency said it had no comment on the development proposal. "We don't know anything about this," said Dale Carlson, chief communications officer for CIRM.

Vellinga wrote that the proposal appears to be in the concept stage, but Tsakopolous and his supporters have hired a well-known political consulting and PR firm, Townsend Raimundo Besler & Usher, and promoted the plan with Yolo County officials.

Vellinga reported:

"The plan is similar in approach to efforts Tsakopoulos has made in Sacramento and Placer counties, where he offered to fund an NBA arena and a university, respectively, with the proceeds from new development on agricultural land that is now off limits to building.

"As outlined Wednesday by Tsakopoulos' spokesman, Jeff Raimundo, the Yolo proposal is short on specifics, such as how much housing, office or retail space he would seek permission to build on about 2,800 acres of land he controls between the city of Davis and the Vic Fazio Yolo Wildlife Area.

"In meetings with Yolo officials, including a dinner held at the Sutter Club in downtown Sacramento, Tsakopoulos and his supporters have stressed the benefits of the stem cell facility but have offered little detail about what it would take to finance it."

Vellinga continued:

"'Bob and Angelo thought this up,' Amy Daly, executive director of the Alliance for Stem Cell Research, said of the new idea for a research center. 'My understanding is that Angelo is looking for a legacy he can leave. He wants to do something big. And Bob lives, eats and breathes stem cell research.'

"Daly, who worked with Klein on the stem cell initiative, also is helping promote the Tsakopoulos plan. She said there is a significant funding gap for research that's beyond the basic stage but not ready to hit the market. The new center could fill that gap, she said."

Daly also worked for the California stem cell agency as director of patient and medical organization relations from Jan. 14, 2005, to Nov. 25, 2005.

Raimundo told the California Stem Cell Report that Yolo County supervisors "first started the dialogue about a biomedical research corridor." Raimundo said the project had a goal of generating a $200 million endowment for the center, although there were no details how the funds would be raised. He said any development would likely include residential and commercial building.

He told CSCR:

"This is a real convergence of a county that wants to boost its economic development and is willing to look at biomedical research complexes along I-80, a biotech community looking for research incubators in a comprehensive university-oriented R&D complex with allied ventures, and a willing and enthusiastic landowner.

"No specific plan has been created yet, but what ultimately is built here will be determined by the county as part of their general plan update."

Simpson, of FTCR, said,

"I'm extremely doubtful of a commercial real estate project that tries to ride on the coattails of 'stem cell research.'

"Many questions need to be answered about this deal by both Angelo Tsakopoulos and Bob Klein.

"A good start for Klein would be to decide if he wants to be chairman of the ICOC or of his political advocacy group. He should not serve as both."

Here are links to some previous items on Americans for Stem Cell Therapies and Cures. "Ongoing Threat," "Background Statement," "Two Hats" and "Unseemly Position."

(Personal disclosure from the California Stem Cell Report: Raimundo is a friend and former colleague at The Bee. Vellinga is also a former colleague. I have met Tsakopolous on several occasions and have directed news coverage of some of his enterprises. I have exchanged email with Markos Kounalakis, Tsakopolous' son-in-law and president of the Washington Monthly, and once submitted an article to that magazine that I ultimately withdrew from consideration because of the length of the editing process.)