ACT Press Releases and the NY Times

The ACT flap is one of those stories that will dog embryonic stem cell research for years – regardless of the merits or the lack of merits of the issue. One reason is that ESC research foes will not let it die.

The latest chapter, however, came in the New York Times with a related press release from ACT, the Alameda, Ca., firm whose research triggered the hooha.

Reporter Nicholas Wade wrote on Nov. 22:

"The scientific journal Nature today issued a clarification of a recent report that human embryonic stem cells could be derived without harm to the embryo, but the journal affirmed the report’s scientific validity.

"The finding, by Robert Lanza and colleagues at Advanced Cell Technology...caused a stir when it was published online in August, because it seemed to undercut the argument of stem-cell opponents that working with the cells necessarily means a potential human life has to be destroyed."

Wade also reported:

"Dr. Lanza said that he had just finished training a team from the University of California, San Francisco, in how to use his technique, and that he expected visitors from four other laboratories."

The company quickly followed the Times story with a press release headlined:

"New York Times Cites Advanced Cell's Review in Nature On an Approach to Generate Human Embryonic Stem Cells Without Destroying the Embryo"

The Interests At Stake at the California Stem Cell Agency

Another look at the conflicts of interest – all legal – in the operations of the California stem cell agency came recently in the San Jose Mercury News.

John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumers Rights, wrote an op-ed piece involving the upcoming, nearly $300 million in grants for stem cell research facility.

Needless to say, the money will be hotly pursued by all of California's leading universities and research instititutions. Thirteen of those have voting members on the 29-member board that will make decisions on the grants. They are barred from voting directly on grants applications from their instititutions.

But coming up next week, they will make some decisions on the ground rules for those grants. Don't look for them to vote against the institutional interests of their employers. Simpson explored some of the ins and outs of the rules and the issues.

His conclusion:

"Those representing the institutions that want the money ought not set the rules for how they get it. Unfortunately, that's not what Prop. 71 provides."

CIRM's Own Best Interest Requires More Disclosure

The president of the California stem cell agency, Zach Hall, has penned a two-year anniversary piece on CIRM and its progress but notes that a "source of consternation" remains for some.

Count the California Stem Cell Report as one of those consternated.

The issue is the refusal of CIRM to disclose the names of those seeking hundreds of millions of dollars in public money.

Hall says the agency insists on secrecy, even when some of the applicants disclose their applications themselves, because that is the way scientific grant applications have always been handled at the federal level. He contends in an op-ed piece in The Sacramento Bee that secrecy will "promote the best possible science."

Does secrecy really mean better science? We can't say we have reviewed all the scientific literature on the question, but we doubt that there is much, if any. It is an untested proposition.

We do have ample evidence to support the belief that handing out hundreds of millions of public dollars behind closed doors leads to abuse of the public trust. Nearly every week one scandal or another – from California to Washington, D.C. -- emerges about boondoggles involving public booty.

We are not besmirching CIRM or its officials, although the agency has built-in and legal conflicts of interest at its highest levels that deserve constant scrutiny. But human nature being what it is, the opportunity to carve out a nice multimillion dollar chunk of cash is much too tempting. The only way to minimize the temptation is to make the process as open as possible. Even then, abuses are nearly certain to occur.

CIRM would be well served to protect itself from allegations of self-dealing and misdeeds by maximizing the openness of its grant reviews, including disclosing the names of applicants and the financial interests of those reviewing the grants.

CIRM Nearly Awash in Cash -- Sort Of

The cash will start rolling into the California stem cell agency by the end of the year – some $181 million that will go for financing its first research grants more than two years after voters approved the creation of CIRM.

Most of the money comes from a $150 million loan of state funds authorized by the governor of California. The additional funds will come from the private sector. None of it will be repaid if the agency loses its legal battles, which is considered to be an unlikely event.

Details of the terms of the loans were not immediately available. But CIRM released a brief synopsis of the private lending: Gordon and Betty Moore Foundation, $10 million; The David and Lucille Packard Foundation, $5 million; Gordon E. Moore, $5 million; The Sandler Family Supporting Foundation,$5 million; H&S Investments I, LP. $2 million; Jewish Community Endowment Fund, $1 million; Seventh Street Warehouse Partnership, $1 million; Steven L. and Mary Green Swig, $1 million, J. Taylor Crandall, $1 million.

News coverage was light. Here are links to stories by Maria La Ganga in the Los Angeles Times, Jim Wasserman in The Sacramento Bee and The Associated Press.

(Editor's note: An earlier version of this item carried incorrect figures (supplied by CIRM) for the individual BANs purchases. Those figures have been corrected in this item and on the CIRM website.)

Industry Opposition to Affordable Stem Cell Therapies Deplorable

Two advocates for affordable access to stem cell therapies developed with California taxpayer funds have deplored the California biomedical industry's opposition to such efforts.

State Sen. Deborah Ortiz, D-Sacramento, one of the chief advocates in Sacramento for stem cell research, said she was not surprised by the opposition of the California Healthcare Institute (see item below).

Here is her complete statement, which she released following an inquiry from the California Stem Cell Report:

“I am disappointed, but not surprised. It appears CIRM is responding to opposition from biotech companies at the expense of working Californians who are footing the bill for California’s embryonic stem cell research.

“The biomedical industry has demonstrated all along that they value increased profits over making treatment affordable to Californians.

“We urge advocates and ICOC members who have fought to bring equity and affordability to California’s taxpayer-funded embryonic stem cell research program to continue their battle to make these therapies available to all who need them.”

Joe Araya Tayag, a program manager at the The Greenlining Institute, a group that advocates for minorities, also responded to a query from the California Stem Cell Report concerning the legal opinion written on behalf of the California Healthcare Institute.

Here is the text of Tayag's comments, which are not available elsewhere on the Web:

"It would be shameful for the biomedical industry to refuse to commercialize state-funded products at a discount. California’s priority should be to ensure that public monies support the development of affordable life-saving therapies.

"Amidst widening minority health and healthcare disparities, Prop. 71 promises to quell the growing costs of the state healthcare crisis through the development of cures rather than the maintenance of illnesses. To fulfill this promise, the affordability provisions for the low-income and uninsured in the CIRM’s IP policies must be upheld. Input from underserved minority communities—who will be most affected by these provisions—must elevate their participation in protecting these policies.

"Over 20 percent of Californians are uninsured and of those, over half are Latino. Also, considering that over 72 percent of Medi-Cal program enrollees are people of color, these provisions will directly guarantee that the state’s minorities have a better chance of affording the promised cures and medical diagnostics.

"While the policies may be more clear, they are certainly not redundant. Policies that are setting world-precedence for future partnerships between biomedical industry and the state must continue to laud the importance of access along with innovation.

"California is in the position to take a leadership role in the drafting of IP policies that best extend these provisions of access and affordability. Although being in support of the often referred-to mantra of 'faster cures,' Californians should draft policies that ensure the promotion and development of 'fair cures.'"

Biomedical Industry Says Nay to California Stem Cell Affordability

The California biomedical industry has served notice that it will mightily resist current efforts to ensure the affordability of treatments that result from embryonic stem cell research funded by the California stem cell agency.

The industry's "letter of intent" comes in the form of a legal opinion written by a heavyweight Sacramento law firm, Wilke, Fleury, Hoffelt, Gould & Birney, on behalf of the California Healthcare Institute, the state's leading biomedical industry group. Wilke, Fleury's other clients in the past have included Big Pharma companies such as Novartis and Glaxo Wellcome.

The firm's letter to CIRM addresses the proposed intellectual property rights regulations that would apply to CIRM grants to nonprofit organizations. The IP proposal is attempting to implement the expectation that low and middle income persons will not be frozen out of Prop. 71 therapies because of their high cost.

Writing on behalf of his firm and CHI, John Valencia attacks the following CIRM language:

"…licensees will agree to provide to patients whose therapies and diagnostics will be purchased in California with California funds or fund of any political subdivision of the state the therapies and diagnostics at a cost equal to that resulting from the provisions of Title 42, United States Code section 1396r-8, subdivisions (c)(1)(A)-(B) and subdivision (c)(2)."

The law firm's 10-page argument says that CIRM is bent on a course that will not stand up to tough legal scrutiny, with the implication that its proposal is likely to meet a vigorous legal challenge.

Wilke, Fleury says CIRM's proposal is "largely redundant" and "susceptible to failure." The law firm states:

"The apparent objective of the proposed regulation – to provide California purchasers with preferred product acquisition pricing for 'therapies and diagnostics' resulting from CIRM-funded research -- lacks adequate certainty and definiteness to meet the general purpose of state agency regulatory adoptions to define, clarify, interpret and implement statutory enactments. Outpatient prescription drugs which result from CIRM-funded research will be readily available to virtually every state and local agency purchaser, at preferred product acquisition cost levels guaranteed by federal or state law, or the designed combination of the two. The proposal requires further detail in relation to key elements (i.e., definitions for key operational elements of the proposed regulation, such as 'therapies,' 'diagnostics,' 'California funds,' and 'political subdivision') in order to avoid failure upon review by the state Office of Administrative Law (OAL) for lack of clarity."

Wilke, Fleury continues:

"In virtually every instance, the proposed regulation is of questionable value until greater certainty is provided regarding the cost guarantee that will attend to CIRM-funded discoveries other than eventual outpatient prescription drugs."

Wilke, Fleury does a have a point in its letter concerning the CIRM language. More artful drafting is needed so that it will stand up to challenges and be fully understood by grant recipients.

But fundamentally the biomedical industry does not want to be hampered in any way in its efforts to extract the maximum profit from its inventions, whether they are funded by taxpayers or by the industry itself. That is certainly a justifiable position for a business, whose first loyalty is and should be to its bottom line.

That said, if business wants to dine at the public trough, it will have to abide by the etiquette of government and not its self-interest.

It is difficult to overemphasize the importance of the CIRM IP debate, given its far-reaching impact in a fledgling field of research and medicine. But the discussion concerning IP and access and affordability to CIRM-financed stem cell therapies is invisible to the public. The major media have ignored the tussle over who is going to benefit economically and medically from CIRM's $6 billion worth of taxpayer-funded stem cell therapies. Even groups representing the poor and minorities are missing from CIRM's IP discussions, although they would seem to have a substantial stake in ensuring affordability.

In public policy discussions such as this, effective representation, as offered by Wilke, Fleury, is likely to carry the day regardless of the best intentions of the rule makers and many of the supporters of Prop. 71.

Cracking the Tap for Stem Cell Cash

Monday is Revolution Day down here in Romantic Old Mexico but in California it will be the "show-me-the-money" day for the California stem cell agency.

The Finance Committee for CIRM is scheduled to open the spigot and start a major cash flow to fiscally strapped agency. The prime order of business is the governor's long-delayed promise to pump $150 million into the stem cell effort.

Of course, it is a loan to be paid back when the $3 billion in bonds are sold following the expected positive resolution of the lawsuit and appeal involving the agency.

The session of the group is slated for 1:30 p.m. in the state treasurer's office in Sacramento.

The treasurer's Web page coincidentally has an interesting feature on it, a constantly changing total for California state government indebtedness. The total approached $24 billion at the time of this writing. Your share was $2,551.93 -- if you live in California.

As for Revolution Day, it marks the 1910 revolution in Mexico, a multi-year affair that, among other things, sent tens of thousands of Mexicans fleeing into the United States because of the bloodshed and destruction of the economy. You can read more about it in "The Hummingbird's Daughter" by Luis Urrea" and "Rain of Gold" by Victor Villasenor , both men with strong California ties.

CGS Package of Stem Cell Items

The Center for Genetics and Society has a tidy wrapup of a bunch of stem cell developments in its latest newsletter on its web site. The items range from politics to a look at a "groundbreaking proposal on human biotech policy."

Some excerpts:

"The election results don't support the 'overwhelming mandate' or 'successful wedge' interpretation of some pundits. But the political winds have clearly shifted. "

"Francis Fukuyama and Franco Furger have just
released the most comprehensive analysis and set of recommendations on governance of human biotechnologies in the United States that has been prepared to date."

The book is called "Beyond Bioethics: A Proposal for Modernizing the Regulation of Human Biotechnologies."

CGS also had an item on a little-noticed meeting in October: "Toward Fair Cures: Integrating the Benefits of Diversity in the California Stem Cell Research Act was a first-of-its-kind conference on minority health disparities and stem cell research."

Not Dead Yet

In recent days, the California Stem Cell Report has been performing unspeakable acts involving the innards of one particular sailboat. Thus we have not been posting as frequently as the hundreds of thousands of readers (that is bit of hyperbole) might like. But never fear. We are not dead yet. Hot stuff – or maybe not-so-hot stuff – will be forthcoming in the next few days. Cheers to all.

Major Conflicts of Interest, Picayune Details

Sometimes tiny details tell us more about the nature of things than a panoramic perspective.

Such was the case last month at a meeting of the CIRM Oversight Committee when it considered what appeared to be a routine, previously discussed issue. We wrote about it then, noting that it illustrates the powerful nature of the built-in conflicts-of-interest involving CIRM.

The matter has come up again in the form of a comment on the proposed regulation offered by the Oversight Committee. The following was written by John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumer Rights. The letter is addressed to CIRM as part of the official state process for adopting regulations. We quote it verbatim.

"I am writing to object to the removal at the October Independent Citizens' Oversight Committee meeting of the last sentence of SECTION 100309, Press Release Requirements of the Nonprofit Intellectual Property Policy. The sentence read: 'In the event CIRM wishes to participate in a joint press release, the grantee will coordinate with the CIRM Communications officer.'

"According to the Initial Statement of Reasons, 'This regulation is necessary so the CIRM is apprised of current significant developments regarding CIRM-funded research and ensure proper attribution to the CIRM and the State of California for the CIRM-funded activity.'

"Without the sentence, there is no way of ensuring that CIRM and the State of California receive proper attribution for CIRM-funded research in news releases.

"Section 100309 was approved twice by the ICOC. The regulation received no comments from the public during a thorough review of the regulations conducted by the IP Task Force and CIRM staff during the summer. During that process public comment was appropriately considered on other aspects of the policy and the IP regulations were modified taking that comment into account as mandated by the Office of Administrative Law procedures.

"The role of the ICOC at the October meeting should have been simply to make sure that those modifications were appropriate and took public comment into account. It was not appropriate to raise new issues that had been settled. Removing a sentence that had been approved twice by the board was at best arbitrary and capricious.

"More troublesome was the motivation for the removal. The action came on a motion from David Baltimore. Unfortunately the transcript of the meeting was not expected to be available before the end of the period for public comment.

"However, my notes show that Baltimore expressed concern that the requirement to co-ordinate with CIRM's Communications Officer would place a burden on universities. Rather than acting in the interests of all Californians, he was clearly acting in what he perceived to be the interest of the institution he represents. This sort of behavior does not bode well if one expects ICOC members to live up to the committee's name, 'independent' and truly act in the interests of all Californians rather than the institutions they represent."

Klein: A Man With Two Hats

John M. Simpson, stem cell project director for the strong>Foundation for Taxpayer and Consumers Rights, has this to say about the endorsement of a candidate for California lieutenant governor by the state's stem cell chairman.

"Bob Klein needs to decide if he wants to be a stem cell advocate or the head of California's stem cell agency.

"Wearing these two hats at the same time does a disservice to both the California Institute for Regenerative Medicine and Americans for Stem Cell Therapies and Cures."

Simpson's comment came as a result of a query from the California Stem Cell Report.

Stem Cell Snippets: Galas to Free Stem Cell Movies

Here are some short notes and links to items connected to California stem cell issues.

Shades of Arnold -- The celebrated stem cell fund raiser last spring in San Francisco has not yet resulted in one dollar for CIRM. The agency told the California Stem Cell Report that it knows of no reason for the delay or the size of the contribution to CIRM, if one is forthcoming.

IP – CIRM's IP Task Force meets this Thursday in La Jolla to wrestle with rules for sharing possible stem cell booty with business. The proposed IP policy says, "There are no extant policy models that capture in entirety the intent of the State of California in its objectives to fund the for-profit research sector and provide a return to the state. As a consequence, this proposed policy is a unique synthesis of best practices and recommendations from funding agencies and foundations around the world." The Task Force may hear from representatives of businesses in the San Diego area. You can participate in the session at offsite locations at San Carlos in the Bay Area and UC Irvine. Here is the agenda.
Good Old Days – Writer Paul Billings in New Scientist magazine longs for the days when the feds reigned supreme. He remains fond of national funding models, despite their failings in ESC research. And he says Prop. 71's "most visible outcome to date has been the creation of a new bureaucracy." We should note that CIRM's staff totals about 20, probably less than the staff of the magazine.

Free Stem Cell Movies – A stellar cast of San Diego stem cell scientists with cameo performances from two CIRM character actors is featured in a 17-chapter ESC video serial available on the California Institute for Telecommunications and Information Technology website. The videos are from an invitation-only conference called "Stem Cell Meeting on the Mesa." Lots of science, plenty on ethics and a bit on policy and business.

An Extraordinary Agency (CIRM), Now Two Years Old

The California Institute for Regenerative Medicine – the state stem cell agency – marks its second anniversary this month.

The $6 billion agency was created when 59 percent of California voters approved Prop. 71 in 2004. A spokesman for CIRM said no special activities are planned for the birthday, which could be considered to be Nov. 2, the date of the 2004 election, or later in the month, when the results of the election were actually legally certified.

Without attempting a major overview of the agency's work, it is safe to say that it has made substantial progress towards its goal of turning stem cells into cures. It has improved its operations substantially from those difficult days of 2005. It has funded training programs to develop more stem cell scientists. And it is on the verge of making its first research grants and financing new laboratories.

The endeavor – believed to be the largest single source of embryonic stem cell funding in the world – has attracted international attention. A number of states in this country are attempting to emulate the effort in one way or another. CIRM also has gone beyond national ESC research standards and become the benchmark for ESC research standards in this country.

That said, life at CIRM is not all hunky dory. It faces considerable challenges, as readers of the California Stem Cell Report know. But the folks at CIRM are engaged in an enterprise that comes along only once in a lifetime. Although the details of the work at the agency are sometimes pedestrian, CIRM staffers are on the cutting edge of an unprecedented effort that ranges over new ground in science, medicine, religion, ethics, government, politics and business. They should take great pride in what they are attempting to do.

We wish the entire tiny band of CIRMies – all 20 or so -- a grand and happy birthday.

Klein and the Endorsement: CIRM Says No Comment

The California stem cell agency has no comment on the allegations that its chairman could be violating the law with his endorsement of a candidate for California lieutenant governor as detailed in the item below.

There are a number of interpretations of that sort of response. One is that the agency does not disagree with the assertion of illegality. Another is that they do disagree but for unknown reasons they choose not to share that belief with the public. Still another is that they do not know whether Klein's actions are illegal but they do not want to acknowledge their ignorance in public. And still another is that they do not want to engage in an exchange with an organization that sometimes has been held in low regard at CIRM. And yet one more is that they do not want to bring any more attention to the allegations by appearing to take them seriously. Or perhaps a combination of those considerations is the reason for the no comment response.

Does Klein's Endorsement of a Political Candidate Violate the Law?

The Biopolitical Times – the blog of the Center for Genetics and Society – has suggested that California stem cell Chairman Robert Klein has committed an illegal act by endorsing the Democratic candidate for California lieutenant governor.

Jesse Reynolds, a Center official who has followed CIRM since its inception, wrote:

"It's my understanding that as an appointed state official, he is prohibited from endorsing candidates for office."

Reynolds quoted a California State Supreme Court decision, Stanson v. Mott, as setting limits on electioneering by appointed officials. It said,

"A fundamental precept of this nation's democratic electoral process is that the government may not 'take sides' in election contests or bestow an unfair advantage on one of several competing factions. A principal danger feared by our country's founders lay in the possibility that the holders of governmental authority would use official power improperly to perpetuate themselves, or their allies, in office...; the selective use of public funds in election campaigns, of course, raises the specter of just such an improper distortion of the democratic electoral process."

Klein, of course, said he was endorsing John Garamendi as a private citizen – not as head of the Oversight Committee for the stem cell agency. If elected lieutentant governor, Garamendi would have the ability to appoint as many as five members to the 29-member Oversight Committee.

Reynolds wrote:

"His attempt at endorsing Garamendi as something other than his official capacity - chairman of the board of California's $3 billion stem cell program - is disingenuous and wrong. Everyone knows what his day job is. Klein's action is the equivalent of Leon Kass, then chair of the President's Council on Bioethics, lobbying Congress on stem cell research as a "private citizen" - a move that was
roundly criticized by stem cell research advocates."

Reynolds also cited an earlier item on the California Stem Cell Report which reported that Klein is head of Americans for Stem Cell Therapies and Cures, a lobbying and political action group. Reynolds continued:

"Klein chaired a similar advocacy organization, the California Research and Cures Coalition, just after the passage of Proposition 71. He resigned that post [PDF] under pressure. This is more egregious, in that the new organization is a lobbying outfit, not just an 'education' nonprofit. Moreover, it advocates for candidates that will appoint the board members whose support Klein needs to stay on in his official capacity. Klein must choose: Is he an advocate, or a public servant? He should resign from one of the two boards."

We are querying CIRM concernings its position on whether Klein can legally endorse candidates for state office. However, he and other state officials regularly make contributions to candidates for state office, an act that is tantamount to an endorsement and which is apparently not banned by state law.

The Scientist Magazine: WARF Patents Over-Reaching

The prestigious magazine, The Scientist, has taken on WARF and its stem cell ownership claims in two pieces that denounce the WARF patents as absurd and harmful to scientific research.

Richard Gallagher, editor of the magazine, and Glenn McGee , director of the Alden March Bioethics Institute in New York state, wrote an editorial and column, respectively, on the subject.

Gallagher said:

"Patents are a good thing. In general, they promote progress by encouraging research and development with incentives. But sometimes, they over-reach, and they impede progress rather than help it. This is one of those cases. The WARF patents point up the sometimes uncomfortable conflict between intellectual property rights and scientific freedom that many of our readers often feel as they find their way in the funding environment of the 21st century."

McGee wrote:

"So can someone own the cells that make up what is important about a human embryo? And if so, do we have to pay them every time we make our own embryonic cells, every time we make a medicine or other innovation from embryonic cells, and even when we use the cells to teach?

"Basically, if it looks like an embryonic cell, you'd better pay up. And if you try to make something out of your own embryo - yes, the one you made with your own body, from your own body - well, hope you have good lawyers."

He continued:

"In one among many of its attempts to avoid what could and should be a reversal of these patents stemming from the decision to review them, Wisconsin's Governor Jim Doyle has announced that companies who fund work at universities and nonprofits in that state will not have to pay any licensing fees. Previous attempts to ameliorate the problem have been more aggressive: offering to provide the cell lines at lower prices or to cross-license in a friendly way, for example. It wasn't enough for Californians, and now it appears it won't be enough to stop right-thinking people everywhere from filing suit, on moral grounds if nothing else.

"The protection of patents is supposed to extend to 'things under the sun made by man.' There has yet to be a serious challenge to the absurdity of patents on disease genes, and the even more absurd notion that the ability to find, to discover, constitutive parts of an embryo means that you own them."

CIRM Ripped for Secrecy

The California stem cell agency, which has sworn to uphold the highest standards of openness, has come under fire in the op-ed pages of The Sacramento Bee for its secrecy in the process of reviewing applications for tens of millions of public dollars in research grants.

John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumers Rights, took on CIRM. He wrote:

"Despite mouthing high-minded slogans, the institute's leaders frequently miss the mark whenever there is a clear opportunity to transact the public's business in public."

Simpson continued:

"No useful purpose is served by CIRM's penchant for secrecy. It should disclose who applied and where they are from, enabling all concerned to track awards and dispel worries about discrimination.

"There's no need to worry about embarrassing somebody because he didn't get a grant. CIRM is planning to fund only 12.9 percent of the applicants.

"Missing this cut is no big deal. Scientists need to develop thicker skins if they want to use public money for their work, and CIRM needs to let the sun shine in.

"Bottom line: They want our money. They must tell us who they are and ask for it in public."

Klein Says $150 Million Loan Up for Approval Later This Month

California stem cell Chairman Robert Klein has released a statement on Gov. Arnold Schwarzeneger's failure to fulfill – so far – his $150 million promise to bail out the fiscally strapped California stem cell agency.

More than three months ago the governor vowed to provide the money "now." Aides told CIRM that funds would be forthcoming by mid August.

Klein's statement did not explain why the delay has occurred but said a meeting of the CIRM Finance Committee will be held later this month to finalize the loan. Klein said the deal was "extraordinarily complex."

Stem Cell Politics: Beware the ESC Troglodytes

At one point stem cell advocates deplored the intrusion of politics into stem cell research. They pointed to President Bush's intrusion into the science as an example of how harmful it could be.
No more. Stem cell advocates are now hammering away at the need to throw out the nonbelievers and defeat the ESC troglodytes.
A fair amount has already been written about the stem cell political push elsewhere in the country. But the issue has surfaced in a few races in California as well.
One of the political enterprises involved is Robert Klein's Americans for Stem Cell Therapies and Cures, whose headquarters are located in his business offices. (Klein, of course, is also the chairman of the California stem cell agency.)
The Americans group has produced a report card on the California statewide races from governor to controller, but does not rate California legislative or congressional candidates. Singled out for special attention is State Sen. Tom McClintock, a Republican who is running for lieutenant governor.
Reporter Rebecca Veseley of the Contra Costa Times covered a news conference this week during which Klein disparaged McClintock as representing "the far right." Klein noted that the lieutenant governor can make five apppointments to the Oversight Committee for CIRM. He said that could place McClintock in a position where he could damage stem cell research. A spokesman for McClintock said he would apppoint "taxpayer watchdogs who will demand accountability."
Klein's group is primarily pushing a national agenda, building mailing lists, arranging for speakers and drumming up voter turnout.
Klein also makes personal political contributions. We do not yet know the figures for this fall, but he contributed $5,000 last spring to Debra Bowen who defeated Deborah Ortiz, a longtime stem cell advocate, for the Democratic nomination for California secretary of state. Ortiz riled Klein with her insistence on greater accountability from CIRM, and he lambasted her publicly "as an ongoing threat" shortly before the primary election last June.

$150 Million Snared in 'Red Tape'?

"Red tape and election year politics" apparently have delayed Gov. Arnold Schwarzenegger's promised $150 million loan to the California stem cell agency, according to The Associated Press.

Reporter Paul Elias has written a follow on our report (see item below). Elias said:

"'This is a unique and extremely complicated financial transaction with a lot of moving parts,' said California Department of Finance spokesman H.D Palmer. 'It has taken a little bit longer than anticipated, but nobody has been slow on this.'"

Palmer's position is much different than that of Schwarzenegger in July when he indicated, in a politically timed announcement, that the money would be made available promptly. His aides also said they expected funds the paperwork to be completed in mid-August.

Missing: Arnold's Promised $150 Million Stem Cell Loan

Last July, in the heat of the national debate about stem cell research, Gov. Arnold Schwarzenegger made headlines by promising $150 million to bail out the fiscally strapped California stem cell agency.

Today, more than three months later, the agency has not seen one dime of the promised loan despite the governor's July 21 statement that CIRM "need(s) the money now." Schwarzenegger said that it was "critical we take action" and that money should begin flowing "as soon possible."

The California Stem Cell Report queried both the governor's office and CIRM concerning Schwarzenegger's failure to provide the money. The governor's office has not responded to our request on Friday about what has blocked the cash. CIRM also has been less than informative.

Dale Carlson, spokesman for the agency, said that the State Department of Finance "needs to review the loan documents which are still being written," but declined to elaborate.

Unexplained was whether there is some problem with making the loan to CIRM, which one would think would be a fairly routine procedure that could be executed in less than three months. Unexplained also was the exact nature of the loan mechanism, which was not discussed in news reports at the time of the governor's announcement.

Anne Sheehan, an aide to the governor, told the CIRM Oversight Committee at the beginning of August that the loan amounted to "uncharted waters" for the state but that she expected action on it by the middle of August.

Since Schwarzenegger's politically exquisite timing of the loan announcement, which received worldwide attention, he has been involved in a re-election campaign in which he has built a commanding lead over his Democratic opponent, state Treasurer Phil Angelides. Perhaps the campaign has distracted Schwarzenegger's office from fulfilling the loan promise.

California stem cell Chairman Robert Klein alluded to the pressures of the campaign at a meeting of the CIRM Oversight Committee earlier this month. He indicated that the elections had made it difficult to hold a meeting of the CIRM Finance Committee, a special body created by Prop. 71, to approve issuance of CIRM bonds.

However, neither CIRM nor the governor's office explained if or why the Finance Committee would be involved in a loan between two state entities. Klein indicated that the Finance Committee, at its next meeting, would review more requests for bond anticipation notes, which are expected to be issued to private contributors to CIRM.

A July 20 press release by CIRM cited a section of Prop. 71 that appears to allow the state director of finance to provide funding to CIRM from the state's general fund if it is within the amount of unsold bonds authorized by the Finance Committee. That group has already approved $200 million in bonds, which have not been sold, so it would appear giving CIRM the $150 million is a simple ministerial act, but maybe not.

Klein said he hoped the Finance Committee could meet very soon after the fall elections, which will come a week from Tuesday.

The stem cell agency has been strapped for funds because of lawsuits that have blocked the issuance of state bonds that would fund it. It has operated, for the most part, on the basis of private contributions and loans since it began operations in late 2004. CIRM did not respond to a question from the California Stem Cell Report about whether the failure to provide the loan has created any financial difficulties at the agency.

Welcome to The Biopolitical Times

The Center for Genetics and Society has entered the blogosphere with a site called The Biopolitical Times. Initial topics are heavily tilted to the current relationship between vote-crazed politicians and their attempts to exploit embryonic stem cell research.

An excerpt from an item by Marcy Darnovsky:

"We’ve moved on from Fox and counter-Fox, wherein Rush Limbaugh demonstrates that “big idiot” is far too kind. Now we have top-level Democrats demonstrating their skill in cheap emotional blackmail. The take-home sentiment of a new ad by Majority Action, a Democratic 527, is that the Stem Cell Saviors will cure us all. And anyone who doubts that may as well have the blood of that sweet little six-year-old on their hands. This ad should be as embarrassing to those of us who support embryonic stem cell research as Limbaugh’s antics should be to its opponents."

The center, which has actively tracked the California stem cell agency, is inviting comments, private or public, on the site.

Stem Cell Snippets: Warehouses, Fox Ad and Pombo

Here links to some stories related to California stem cell issues:

UC Davis – A warehouse in Sacramento is being converted into a $75 million stem cell research center by UC Davis. Reporter Jim Downing of The Sacramento Bee wrote:

"The new director of the Davis program, Jan Nolta, starts work Nov. 1. Nolta, who grew up in Willows, was recruited from Washington University in St. Louis along with longtime collaborator Gerhard Bauer, an Austrian native who is an an expert in the design and management of ultra-clean laboratories. Nolta and Bauer were at the UC Davis Medical Center on Wednesday as U.S. Rep. Doris Matsui, D-Sacramento, toured the laboratories of Mark Zern, an organ transplant expert whose research team is studying ways to use embryonic stem cells to regenerate the liver."

Michael Fox – His stem cell TV ad rivals the nuclear destruction commercial in the 1964 presidential race in terms of free air time, according to one longtime observer at the Poynter Institute, a newspaper think tank.

Pombo – Stem cell research rose to a higher level of visibility in a Central Valley congressional race in California. Reporter Lisa Vorderbrueggen of the Contra Costa Times wrote the story concerning incumbent Republican Richard Pombo and Democrat Jerry McNerney.

Arlington Speaks on CIRM's Orphan Software

The head of the Arlington Group, the defunct grant review software firm used by the California stem cell agency, says that CIRM has not acquired the copyright or intellectual property rights to the program used by the agency and other major grant providers.

Earlier, we reported that the San Diego Union-Tribune quoted CIRM President Zach Hall as saying that the agency owned the computer codes involving the grant review program. (See item below.)

In response to an inquiry from the California Stem Cell Report, Mary Taylor, CEO and founder of Arlington, provided the following statement that we are carrying verbatim:

"CIRM acquired the rights to the Easygrants software source code to use, modify, or have modified for them for their business purposes.

"They did not acquire the intellectual property, distribution rights, copyright, etc. Second, Arlington Group delivered to CIRM all of the work that had been done to date on their system, including significant documentation of requirements for the system configuration, as well as the initial development work. With this in hand, when they begin working with the new development group, they can hit the ground running.

"Finally, with this transaction, CIRM is saving the state money on license fees for 2007 and forward. So while it was an unexpected challenge, worst of all for AG, CIRM has taken the steps needed to ensure their success and be good stewards of the state's money."

Why is all this important? Orphaned software can be a disaster. Often it is poorly documented internally, without explanations of how the code was constructed and works. When glitches occur, that makes it extremely difficult to maintain by the purchasers. That can mean that information is lost and cannot be compiled properly. Hopefully that is not the case here.

Death of CIRM Software Firm Only a 'Hiccup'

The California stem cell agency, which faces an enormous task in reviewing a flood of grant applications, is minimizing the impact of the demise of the company that produced the software for evaluating and coordinating the applications.

Reporter Terri Somers of the San Diego Union-Tribune wrote that the Arlington Group of McLean, Va., suddenly went "belly up," leaving CIRM in a digital lurch.

But, she also wrote, CIRM President Zach Hall said that CIRM now owns the computer codes behind the Arlington program. Somers continued:

"There was no warning that Arlington was about to go out of business, Hall said. Apparently an investor withdrew his money unexpectedly, causing the company to fold, he said.

"Before that happened, the institute had paid $108,000 to Arlington, Hall said.

"The institute has since contracted with a new company, composed of former Arlington employees, to build the system at a cost equal to what it was to have paid the defunct company, Hall said."

The original eight-year contract called for payment of $233,474 in the first year.

Somers reported:

"'This has been a hiccup for us in terms of time schedule,' Hall said. 'But it's not a major issue.'"

Dale Carlson, spokesman for CIRM, today told the California Stem Cell Report,

"We got the source code, which will be helpful to us going forward. We've got their senior developers ready to work with us. It isn't delaying the review of the grants. It isn't costing us any more money. And we're talking with Arlington's major customers about an ongoing network to support the platform."

Those customers include the Bill & Melinda Gates Foundation, David and Lucile Packard Foundation and the Howard Hughes Medical Institute.

(Editor's note: A slightly earlier version of this item did not include the last two paragraphs.)

The $25 Million Bioethicists' Dog

The blog at the American Journal of Bioethics has addressed the issue of big money and "the butcher's avarice" in the stem cell wars being fought across the country in this fall's election.

Specifically Jim Fossett, director of health and Medicaid studies at the Rockefeller Institute, wrote on Oct. 21 about the Missouri tussle and noted how California led the way. He also had this to say:

"There are huge amounts of money at stake in the embryonic stem cell research debate, and much of the political and financial support for such initiatives is coming from parties that expect to get something out of them—large research grants, potentially lucrative patents and commercial opportunities, scientific prestige, political credit and campaign contributions, tax revenue and jobs. Bioethicists also have a dog in this fight — CIRM’s draft strategic plan earmarks $25 million to examine the social, ethical, etc. implications of stem cell research, and there have been complaints from some quarters that this isn’t enough. By the rules that govern politics and the markets, this is absolutely ok. The right to petition the government for a redress of grievances is enshrined in the Constitution, and capitalism relies on rewards to those who provide society with useful things. The desire for money and status is perfectly compatible with, and is frequently accompanied by, a deeply felt desire to do good and heal the sick. Those who find the scramble for money distasteful might usefully contemplate Adam Smith—'It is not by the butcher’s altruism, but by his avarice, that we may expect to receive our dinner.'"

Klein Helps Aussies in Stem Cell Fray

California stem cell Chairman Robert Klein recently sang a stem cell tune that was "music" to some Australian ears. So says reporter Leigh Dayton in a story in The Australian.

Australia is caught up in a bit of controversy over stem cell research, and Klein visited there to support the forces of embryonic stem cell research.

Dayton wrote:

"'Mr Klein generously offered to visit Australia to help us in the current legislative climate," (Stephen) Livesey (CEO of the Australian Stem Cell Center) says. 'He provided the Australian stem cell science community with advice on how to engage the public, patients and politicians on the complex topic of stem cell research.'"

Klein's stem cell drum beating had a familiar sound to those who have heard him speak in California, but wa swelcomed down under.

Dayton reported:

"Clearly, Klein's words are music to the ears of Australian scientists and patient advocacy groups pushing to change the nation's embryo research and anti-cloning legislation."

The Australian account said Klein was "a guest" of the Australian Stem Cell Center last week, but did not specifically make clear who funded his trip. CIRM says it did not pay for his trip.

Stem Cell Snippets: Conflicts, WARF and Politics

Here are links to items of interest related to California stem cell matters.

Conflicts of Interest – Maryland is wrestling with the same conflict-of-interest questions that dog the California stem cell agency. Erin Bryant of Capital News Service wrote that legislation creating the Maryland stem commission built in the conflicts and does not spell out whether commission members are allowed to vote on applications from their own institutions. One member of the group thinks they should.


WARF – Longtime WARF stalwart Beth Donley is leaving that organization. Donley, the foundation's general counsel, had worked for the organization for eight years. Only six weeks ago she too control of its WiCell affiliate. Donley said she wants to move on to the "next level" – the private sector. That could be translated as higher compensation. It does seem odd that she is leaving so soon after her appointment to the WiCell position. Here is a link to Joe Vanden Plas' story on the Wisconsin Technology Network.


NEJM – The New England Journal of Medicine has a couple of pieces on the politics of stem cells and the flap over the ACT stem cell extraction announcement. Nothing new in the ACT item, but it is a straight-forward delineation of what occurred as compared to the somewhat muddled accounts elsewhere. Likewise with the politics piece.

Who is John Reed?

The 29 men and women who direct the California stem cell agency labor largely in public anonymity. While they oversee the expenditure of $6 billion in public funds, what makes them tick is really not known by the folks whose interests they represent.

Now comes a piece by Terri Somers of the San Diego Union-Tribune concerning John Reed, one of the members of CIRM's Oversight Committee and chief executive of the Burnham Institute in La Jolla, Ca.

So who is Reed? An accomplished scientist and triathlete who rises at 3 a.m. and who "exudes the wholesome earnestness of a patriarch in a 1950s black and white sitcom." He also sings rock at company soirees.

Somers, however, devotes most of her piece to Reed's professional accomplishments. An excerpt:

"Since delving into apoptosis, Reed has written more than 550 peer-reviewed scientific articles and 50 book chapters. He has the distinction of having published more papers on programmed cell death during the past decade than any other scientist worldwide, according to the Institute for Scientific Information. He was also recognized by the Institute for Scientific Information as the world's most cited scientist in all areas of research from 1997 to 1999."

We confess to a fondness for profiles about people such as Reed -- people who actually do the job, provide the leadership and set the tone of enterprises. But good profiles are rare in the media. It is difficult to create a three-dimensional portrait of an individual in the amount of time provided by most newspapers or media outlets. Not all reporters have the skills to crawl inside, so to speak, another person's personality. Perhaps the most difficult part of reporting a profile is to find persons who know the subject of the profile well and who are willing to comment critically and publicly about him or her. After all, none of us are perfect, and to be complete a profile should reflect at least some of that imperfection.

That said, we would like to see more profiles, regardless of their limitations.

Stem Cell Snippets: Rentals to DNA

Here are links to some interesting items related to stem cell issues.

Sharing – One of the goals of the upcoming rounds of lab grants by the California stem cell agency is to increase the sharing of CIRM-funded facilities with other nearby scientists not so fortunate as to have access to the costly gear needed for research. The topic has not received much media attention but its importance was highlighted in an article by Bernadette Tansey of the San Francisco Chronicle. "Microscope for hire" was the headline. In this case, the article discusses UC San Francisco's plans to rent out their tools, six new microscope worth $2 million.

Diver Don – Ubiquitous stem cell advocate Don Reed popped up in the lead of a story by Jason Gertzen in the Kansas City Star looking at the Missouri stem cell measure, which is on the November ballot. The piece used Reed, a former professional scuba diver, as an example of the folks who hope for cures. Reed, meanwhile, is exhorting -- via his website, stemcellbattles.com – the millions of folks with disabilities throughout the country to vote for their best interests in the November election.

Tell-All –-J. Craig Venter is baring all, according to reporter Antonio Regalado of the Wall Street Journal. Venter is just about ready to release his DNA to the world. Venter, you may recall, was the gent best known for his efforts to be the first to decipher the full sequence of the human genome. An interesting piece about a controversial scientist. Here is a link to a free version of the story.

Setting Sail Again – Sort Of

The California Stem Cell Report is leaving the Old Country Tuesday and returning to its home port in Romantic Old Mexico. We have concluded an excellent visit to California, playing with grandchildren and family and now are flying back to ready Hopalong, our sailboat and only home, for a winter's cruising along the west coast of Mexico. Hopalong has been resting at a berth near Guaymas, but we will haul her onto dry land to pull one of her masts to make repairs. The work schedule means that we may not be filing items as often as we have over the past weeks.

Meantime, keep reading the report, send along your comments and tips and whatever else you think may be of interest. We can be reached at djensen@californiastemcellreport.com or you can post a comment by clicking on the word "comments" that appears after each item.

SEED Grant Hopefuls Total 232; Names Remain Secret

A whopping 232 applications competing for $24 million in grants has deluged the California stem cell agency – a figure that CIRM today said demonstrated "the keen interest in the field and the pent up demand for funding for human embryonic stem cell research."

Names of not only the scientists but also their institutions, many of them likely state-funded schools, are secret by the decision of CIRM. However, nothing prevents the applicants themselves from disclosing the fact that they have applied for state funding, and some are expected to do so.

Failure to disclose the names of persons and institutions seeking state funds is poor governmental policy and hardly complies with CIRM's oft repeated pledge for the highest standards of transparency and openness.

John M. Simpson, stem cell project director for the Foundation of Taxpayer and Consumers Rights of Santa Monica, Ca., said:

"The stem cell institute missed another opportunity to operate transparently and build the public’s trust when it announced today that it received 232 applications for 30 SEED research grants from researchers affiliated with 36 nonprofit institutions.

"Californians have a tremendous interest in knowing how this pool is cut to 30 grantees. All would be better served if the names of the applicants and their institutions were released. If you want our money, tell us who you are.

“There’s no need to worry about embarrassing somebody because they don’t get a grant. CIRM is planning to fund only 12.9 percent of the applicants. Missing this cut is no big deal. Scientists need to develop thicker skins if they want to use public money for their work and CIRM needs to let the sun shine in."

(You can read more on this subject at "sunshine needed," "bad policy," "secrecy broken" and "CIRM defends.")

In a CIRM press release, Arlene Chiu, CIRM director of scientific programs, said, "We’re delighted that there is such strong competition for our inaugural research initiative, and that the applicants are considering such a broad range of approaches. It bodes well for the future of our program."

The grants are expected to be awarded in January – the first research funded by the agency since it was created in 2004. Review of the applications, a prodiguous task, is scheduled for late November. (See item below.)

SEED Grant Applications Pour Into CIRM

The California stem cell agency was flooded last Friday with applications for the $24 million SEED grant program but the exact number is not expected to be released until Monday.

Initially, 301 letters of intent were filed for about 30 SEED grants with 78 letters for the $80 million comprehensive grant program. Roughly 40 California institutions were represented. The names of those filing letters of intent and applications for public funding are secret. Only those winning grants will be identified by CIRM.

Nearly overwhelmed by the numbers, CIRM earlier asked institutions to certify that letters of intent were filed by "principal investigators." Dale Carlson, a spokesman for CIRM, said "only five or six" letters were eliminated as a result of the certification process.

On Oct. 1, we reported concerns that the certification effort was unfair and penalized younger scientists. (See "whittling down the researchers.") That issue came up indirectly during last week's meetings of the Oversight Committee.

Chairman Robert Klein noted that one of the goals of the agency is to expand the number of stem cell researchers. He asked CIRM President Zach Hall whether a future round of grants would be proposed to advance that effort.

John Reed, a member of the Oversight Committee and president of the Burnham Institute, also indicated that younger researchers ought to be encouraged.

Hall responded that the SEED grant program was not meant for staff scientists or post-doctoral applicants. He indicated that a grant program aimed at younger scientists could be worthwhile sometime in the future.

To help deal with the imposing number of grants, the Oversight Committee last week added 18 alternate members to the grants working group in addition to the existing 16 alternates. Fifteen scientists sit as regular members of the group.

Just how the review process will work is not entirely clear. The California Stem Cell Report plans to post an item in the near future dealing with the mechanics of how the reviewers will go through the grants.

The agency has scheduled Nov. 28-30 for review of the SEED grant applications by the Grants Working Group. Applications for comprehensive grants are due Nov. 13 and scheduled to be reviewed Jan. 8-10.

Doggie Bag Tidbits from the CIRM Meeting

Here are some leftovers from last week's meeting of the Oversight Committee of the California stem cell agency.

Need for Speed – Each year's delay in issuing bonds costs the agency about $84 million because inflation diminishes the value of the $3 billion authorized two years ago, said Chairman Robert Klein. President Zach Hall also said the agency is moving fast to hire a scientific review officer, a senior facilities officer and a grants technical assistant.

Intellectual Property – Discussion was deferred on the policy on intellectual property for businesses, including open access on scholarly publications involving CIRM-funded research. Time ran short at the Wednesday session so IP was taken off the agenda.

Eggs – About 300 persons viewed the egg risk conference online compared to the 90 who attended the actual session, according to Hall. The agency will issue a report on the conference near the end of the year.

UK/California stem cell summit -– Sixteen California scientists and 16 UK scientists will meet in Great Britain on Nov. 13-14 to discuss stem cell matters. Hall will be attending and will check out the stem cell bank in Merrie Olde England.

Stem Cell Snippets: UC Irvine, Loring and Windows of Opportunity

Here are some links to stories of interest related to California stem cell matters

UCI – Thomas Yuen, chairman and CEO of Prime Cell Therapeutics of Irvine, Ca., has donated $1 million for embryonic stem cell research at UC Irvine, according to a piece by reporter Gary Robbins of the Orange Country Register. Prime Cell is a privately held stem cell engineering firm currently involved with adult stem cells, according to its web site. Robbins said Yuen, 54, has kidney disease and quoted him as saying, "My illness exposes me to a lot of people who are sick and suffering. And I believe stem-cell work holds the promise of treating a multitude of age-related and chronic diseases."


WARF – Reporter David Wahlberg of the Wisconsin State Journal takes a crack at the WARF patent dispute. An excerpt from his balanced article: "WARF's stance, that Thomson's work is worthy of patents, 'is like saying that just because heating in water works for cooking a chicken egg, it's novel to consider using heating in water to cook a duck egg,' said Jeanne Loring, a stem-cell researcher at the Burnham Institute for Medical Research in California."


Out Front – Hartford Courant columnist Dan Haar writes: "The federal ban (on ESC research)has created a window of opportunity for Connecticut, California, Illinois, New Jersey, and perhaps a few other states that have had the foresight to front their own cash. 'When the ban goes away, there are only going to be a few places in the country that already have this,' said Marc Lalande, a UConn geneticist and associate dean who heads the university's stem cell working group. 'We are going to have a leg up. We will be able to compete successfully for federal funding.'"

Strategic Plan – The Red Herring web site posted a piece on CIRM's strategic plan, saying "for the most part" it received an "informal endorsement."

Stem Cell Snippets: From WARF to Researcher Conflicts

Here are some tidbits and links to some interesting news items, press releases or other material concerning California stem call issues.

WARF -- "The recent out-of-state challenges, including one from California, to stem cell patents held by the Wisconsin Alumni Research Foundation (WARF) lack merit and underscore the need for serious patent reform in the United States," says patent attorney Grady Frenchick. In a piece on the Wisconsin Technology Network, he says the challenges are politically motivated. .

Bonds -- CIRM has no plans to sell $1 billion in general obligation debt next year even if it overcomes court challenges, Reuters reports.

Attorney General's Race -– Patient activist Karen Miner pens piece endorsing Jerry Brown for California attorney general, saying his opponent is anti-stem cell research.

Salaries – In response to a request from the California Stem Cell Report, CIRM released the following salaries for the latest hires at CIRM: Lorraine Hoffman, chief finance and administrative officer, $190,000, and Marcia Davey, interim financial officer, $142,000.

Disclosure -– Ivan Oransky, deputy editor of The Scientist, writes in the Boston Globe on the need for more disclosure from scientists. "A survey published in the Journal of Law, Medicine, and Ethics of clinical researchers' attitudes on conflicts of interest included this mind-boggling response: 'Let's say . . . we do a dozen studies for [Company X] . . . and it is a $2 billion company. . . Let's say that I owned a lot of stock in [Company X]. I mean, the application of a new drug to the company, let alone our ability to participate in that drug, would not affect that one iota. So, as far as I am concerned, conflict of interest is overblown.' Message received: Researchers know best. Please stop bothering us with these silly rules and your sensationalist investigations."

Stem Cell News Coverage: Spending, Geography and Planning

News coverge of the meetings of the California stem cell agency was a bit light this week with only the San Francisco Chronicle, the San Diego Union-Tribune and Bloomberg carrying stories.

However, we may see something later from the Los Angeles Times and New York Times, both of which had reporters at the Tuesday meeting.

Terri Somers of the San Diego paper focused on the question of geography as a criteria for selection of research facilities (see item below). She wrote:

"The (Oversight Committee) has shown geographic biases before.

"(Committee member Duane) Roth recalled that the vote on the location of the institute's headquarters – whether in San Diego or San Francisco – was ultimately decided by a vote in which the majority of board members selected what was geographically convenient for them.

"Roth suggested that if geography would be a big factor, applicants should compete for grants regionally."

Carl Hall of the Chronicle discussed the agency's spending plans for 2007 (a revised budget for the agency is expected to be formally presented in December.) Hall wrote:

"California stem cell policymakers revealed a rough outline of what could be a $500 million attempt in 2007 to push the state's stalled experiment in stem cell research into a new phase of productive grant making."

He reported that stem cell chairman Robert Klein says he expects facilities grant to "almost certainly by matched 2 to 1 by institutions and private donors." The committee, however, has not yet set a matching criteria that exceeds 20 percent.

Rob Waters of Bloomberg wrote about the draft of the agency's strategic plan.

"The agency's motto, 'turning stem cells into cures' was on the report's cover. The message inside was more nuanced: While the agency seeks to accelerate research, the report said 'it will take time, perhaps decades' to get proven treatments. The statement drew support from scientists, concern from those afflicted by diseases that may be helped by stem cell therapy.

"'I think some people will look at this plan and say the goals are too modest,' said Leon Thal, a University of California-San Diego neuroscientist and member of the agency's governing board. "'I disagree. I think they're realistic.'"

Conflicts of Interest: From Press Releases to Matching Funds

For those of you who may have forgotten -- at least 14 members of the 29-member Oversight Committee come from institutions that could benefit from the roughly $300 million in proposed grants from CIRM to build research facilities. The committee will decide which instititions receive the cash and under what terms. Members, however, are forbidden from voting on grant applications from their own institutions.

Those built-in conflicts of interests at the California Institute for Regenerative Medicine surfaced today during a discussion concerning the grants and the process of issuing press releases about CIRM-funded research.

Just what should CIRM require from medical schools and other institutions that receive grants for multimillion dollar laboratories? The law requires that applicants must secure matching funds from other sources that equal at least 20 percent of the award. But how that credit is calculated is yet to be determined. Applications will not be submitted for many months, and fundraising is already underway. So the issue of what expenditures made now or even earlier can be counted as matching funds is not an insignificant matter for the deans of the medical schools and others who are raising the cash.

Also up for debate was a provision that would favor grants to institutions that propose a higher matching percentage.

Given their responsibilities to the institutions they work for, some of the deans wanted to be sure their fundraising efforts and money for initial building plans would not be wasted. Some also noted that an early clarification of the issue would mean meaning speedier construction, a goal that CIRM advocates.

Brian Henderson, CIRM Oversight Committee member and dean of the USC School of Medicine, said favoring institutions offering higher matching funds could lead to a "ridiculous escalation" in which schools try to outbid each other. David Baltimore, CIRM Oversight Committee member and president of Caltech, noted that a bidding war disadvantages "poorer" institutions. He favored a straight percentage.

Also disturbing some directors of the agency were grant criteria that would consider the geographic location of applicants within California with an eye to assuring that facilities are available to researchers throughout the state.

Baltimore said the board is "too conflicted" to consider geography. But Henderson said, "Reasonable geographic distribution is a laudable goal." Gerald Levey, an Oversight Committee member and dean of the School of Medicine at UCLA, opposed the use of geography as did Oswald Steward, chair of the Reeve-Irvine Research Center at UC Irvine.

The press release issue can be crystalized in the following manner: Should recipients of $10 million grants, or for that matter any size, be required to "coordinate" with CIRM press releases on the results of the taxpayer-funded research.

Baltimore, who brought up the proposed requirement, said it "was an inappropriate transgression of the independence of (our) institutions." It was a sentiment heatedly defended by others at various institutions.

However, Jeff Sheehy, Oversight Committee member and deputy director for communications at the UCSF AIDS Research Instititute, said coordination on press releases was not an onerous requirement and would help protect CIRM. Ultimately he dropped his opposition to removing the language, declaring that the board was wasting time on the matter in extended debate.

Our point – for now -- about these discussions is not which position prevailed. What is important is that the directors of the $6 billion California stem cell agency are setting the terms of contracts that could benefit their institutions.

The directors are not in a good place. When a director votes, one can imagine him or her thinking: Whose interests do I serve? My employer's? The person who appointed me? The groups I am supposed to represent? CIRM's interests? Or the people of California?

Some of these issues are found in other segments of state government but rarely to the degree they are found on the Oversight Committee of the California stem cell agency. And it is all legal, courtesy of California voters, who created this situation in 2004 when they approved Prop. 71. Nonetheless, for those affected by CIRM and who follow its activities, understanding the conflicts and how they can affect multimillion dollar decisions is an imperative.

By the way, the matching fund issue comes up again at the Oversight Committee meeting in December. The geographic criteria was retained on a 15-10 vote. And grant recipients can ignore any coordination efforts on press releases. The offending press release language, which has been around for months, was removed, triggering another delay in official adoption of the regulations.

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Coming Up Tonight

Sometime in the next few hours we will post an item on today's meeting of the Oversight Committee of the California stem cell agency. It will look at the institutional but legal conflicts of interests that many of the members of the committee have.

Few Complaints Voiced on CIRM Strategic Plan

The California stem cell agency's proposed plan for spending $3 billion on stem cell research received its first real screening tonight, and the audience seemed nearly enamored with the effort.

A few minor questions were raised along with some remarks that could be construed as slightly critical, but generally the comments were along the lines of "extraordinary work product" and "outstanding document."

The screening of the plan occurred at a meeting of the CIRM Oversight Committee, a few miles from Hollywood at the Luxe Hotel on Sunset Boulevard. The proposal comes up for consideration again at another meeting of the committee on Wednesday.

CIRM President Zach Hall walked the audience – the 29-member Oversight Committee – through the document that he and his staff have been working on for about a year. He noted that is a "living plan" and subject to change by the committee, which is not expected to give it a final nod until December. Even then, he proposed that it be reviewed regularly and altered to meet changing needs and opportunities.

While the document contains specific figures, Hall said those are not "immutable" and were intended to be approximate. Final approval of grants is also in the hands of the board – not the CIRM staff.

Hall did highlight one aspect of the plan's special programs – collaborative research and disease teams that would cross multiple institutions and disciplines. They would be tightly focused and managed and encouraged to have a professional manager to push the project along. The plan envisioned $122 million for the disease team program and $60 million for the research team effort. (See page 87 of the plan.)

Oversight Committee member Claire Pomeroy, dean of the UC Davis School of Medicine, and others asked for insertion of language specifically discussing the funding of embryonic stem cell vs. adult stem cell research and human vs. nonhuman research.

Ted Love, another Oversight Committee member and president of Nuvelo, said safety should be an "extraordinary priority" of the plan. "Nothing creates a crisis like safety," he said, referring to public alarm that occurs when human experiments go awry.

Other board members emphasized the need for a top notch public education and communications effort. Committee member Joan Samuelson, president of the Parkinson's Action Network, said that the agency can "succeed only if they (the public) are with us." The plan suggests spending $4.5 million for "public outreach." (See page 105.)

John M. Simpson, stem cell project director for the Foundation of Taxpayer and Consumers Rights and often a critic of the agency, praised the plan's realism and outreach. But he reminded the board,

"At the end of the day the best scientific plan is meaningless unless there are guarantees for affordable access to cures and treatments."

While plaudits were handed out liberally during the evening meeting, the biggest round of applause came following testimony from another member of the public, Roman Reed, who is paralyzed as the result of a football accident.

He said he had told his young son that one day they would walk side by side.

And then Reed told the CIRM board,

"I believe that one day you will make my promise to my son come true."

Some Aussies Less Than Enthusiastic About CIRM Plan

While California stem cell directors heaped huzzahs on a proposed plan on how to spend billions on embryonic stem cell research, a different reaction came from half-a-world away.

BioEdge, a blog of the Australasian Bioethics Information website, carried a piece headlined "California Dreaming." It said, in part,

"Californian voters approved a $3 billion bond issue to finance the institute in 2004. With interest, the cost to the state will be about $6 billion. Now, it appears, that the Institute may have nothing to show for its efforts in cures or in royalties by the time it folds its tent and silently steals away. (The word royalties is not mentioned once in the entire (strategic plan)...."

Wisconsin Gives $1 Million to Thomson Firm, More Tidbits on WARF Patent Flap

The Cheeseheads have thrown down another stem cell gauntlet.

Here is the latest as reported by Kathleen Gallagher of the Milwuake Journal Sentinel:

"Stem cell pioneer James Thomson and two others have started a second company that aims to grow platelets and red blood cells from embryonic stem cells.
"The company, called Stem Cell Products Inc., believes it has a chance to be among the first in the world to bring an embryonic stem cell-related therapeutic to market."

Gallagher said that the state of Wisconsin has given $1 million in grants and loans to the firm, which was co-founded by University of Wisconsin-Madison researchers Igor Slukvin and Dong Chen and venture capital firm Tactics II Ventures.

Wisconsin-California relations also surfaced in a piece by Cathy Tran in The Scientist magazine. The article was a wrapup of the WARF patent flap. But it also had some interesting tidbits.

Tran wrote:

"(California stem cell scientist Jeanne) Loring said the first person to isolate human stem cells was Ariff Bongso at the National University of Singapore in 1994.

"That begs the question why, if the leap to cultivating human stem cells was an obvious one, it wasn't done sooner. Bongso told The Scientist that the scientific community seemed disinterested in the discovery, and so he did not pursue the research further.

"Loring said the first human embryonic stem cell line wasn't created until 1998 in part because the National Institutes of Health did not fund research on human embryos before 2001, which made it 'pretty close to impossible' for any U.S. academic lab to derive human embryonic stem cells. In addition, it was 'not easy to find an in vitro fertilization clinic that wanted to go to the trouble of providing embryos for this research.'

"Thomson, however, maintains that his discovery was far from obvious. 'In the early 1990s, when we started this work, it was not at all clear that the isolation of human embryonic stem cells was really possible, as other groups had tried and failed,' he told The Scientist in an email.

"One of the groups that tried and failed included researcher Michael West, CEO of Advanced Cell Technology and founder of Geron Corporation. 'From firsthand painful experience, [the techniques were] not obvious in the scientific community,' West told The Scientist. The challenge based on the discovery being obvious 'is easy in retrospect, but you really have to base it on real firsthand experiences of the people in those days.'"

CIRM Hires Finance Director

The California stem cell agency has hired University of California official Lorraine Hoffman as its chief finance and administrative officer, effective Nov. 1.

CIRM's press release, which is expected to be up on its site later today, said that Hoffman will be responsible for budgets, independent audits and human resources at the agency as well as assisting on facilities grants.

Hoffman is currently deputy to the senior vice president for business and finance for non-state capital development and facilities in the UC syste, office of the president.

CIRM to NIH: Forget You?

Optimistic Democrats and some stem cell scientists believe that this fall's elections are part of a trend that will trigger a veritable torrent of funding for embryonic stem cell research. But that amounts to little more than wishful thinking.

Certainly funding may increase somewhat if the political winds shift to a favorable direction, but there is no guarantee of that. Even with a president in 2009 who might support stem cell research, enormous federal budget deficits will continue to plague the country, and optional research is not likely to suddenly surmount that obstacle.

Moreover, California has embarked on a go-it-alone course that other states are emulating. California's position was reinforced in the draft of its strategic plan that will receive a full-blown hearing in Los Angeles on Tuesday and Wednesday. The actions by California and others are making the NIH – dare we say it – a tad irrelevant, at least in terms of embryonic stem cell research.

Writing in the blog of the American Journal of Bioethics,
James Fossett of the Rockefeller Institute’s Federalism Research Group noted that CIRM's plans include creation of "NIH-free zones." That will cost $250 million, compared to NIH funding currently of about $30 million annually for ESC research. Fossett wrote:

"While perhaps wasteful and inefficient in the short run, such expenditures ultimately mean that California can formulate its own policies around what goes on in those labs without having to care very much about what the feds do or don’t do. It also means that other states contemplating stem cell research programs funded with their own money are likely to look to Sacramento, rather than Washington, for guidance on how to manage conflict of interest, egg procurement, royalty income distribution, intellectual property and the other complex ethical and legal issues that surround this research."

He continued:

"The development of funding streams independent of Washington and dedicated research infrastructure free of federal funding restrictions means that if federal policy makers do decide to do something definitive on stem cell research, it may not have much effect on anything. Having spent the money on new facilities and done the political heavy lifting to get ethical and commercial agreements in place, states, companies and universities may well decide that they like things the way they’ve got them and they don’t need to pay attention to the feds."

Indirectly supporting Fossett's position was a Sept. 1 column in the Wall Street Journal by Sharon Begley. The piece focused on the impact of tight funding at NIH. The headline read: "A Smaller NIH Budget Means Fewer Scientists And 'Too-Safe' Studies."

Begley wrote that in 2004

"...Congress and the White House, calling for reduced budgets in the wake of tax cuts and a growing deficit, slammed on the brakes. Ever since then, NIH's budget has been flat or, adjusting for inflation, down. The chance that a scientist's work will be funded fell to 22% last year from 27% in 1995, and to less than 10% in some fields. Now the warnings are coming true: The plug is being pulled on promising research by scientists with solid track records.

"'When 27 percent of proposals were funded, it wasn't that hard to separate the top quarter, says molecular biologist Keith Yamamoto of the University of California, San Francisco. 'There was a natural cutoff,' he says. But at 10 percent 'the ability to distinguish a grant that deserves funding from one that does not vanishes. It becomes a crapshoot, with every grant in jeopardy.'"

The NIH and its enormous sway over research will not disappear any time soon. But it is an aging insitution, hobbled by its reliance on the good graces of the president and Congress, where a handful of truculent lawmakers can raise considerable mischief with its funding. CIRM does not share that weakness. Neither the California legislature or even the state's Terminator governor can fiddle with the agency's plans or restrict its budget.

An old cliché with considerable truth holds that pioneers are the ones with arrows in their backs. At the same time, pioneers snatch up the best land, the most favorable water rights and set the agenda for the latecomers. That favored position is where CIRM now finds itself.

CIRM to California: Lower Your Expectations

It was a message that could have been delivered by former Gov. Jerry Brown in his heyday.

Don't look for cures right around the corner. Science is hard and results are not guaranteed. Lower your expectations, as the former governor told Californians shortly after he was first elected. And it was a message that came through clearly in the California stem cell agency's draft of its strategic plan.

In the words of the Knight Science Journalism Tracker, the proposal "appears to be a rare case of prudence by public servants."

The plan was even heralded – sort of – in religious fundamentalist circles. A piece written by reporter Michael Foust in the Baptist Press said,

"In an announcement that some ethicists say should lead to a greater focus on adult stem cells, a much-celebrated California stem cell institute says any cures using embryonic stem cells likely are years away."

The strategic plan's theme of patience, at least as it was portrayed in the media, was somewhat different than the overheated rhetoric of the campaign for Prop. 71 two years ago.

A recent paper by Tamra Lysaght of the University of Sydney, published in the Australian journal Bioethical Inquiry, examined 99 news stories from the Prop. 71 campaign. Among her conclusions:

"Concerns regarding the hype surrounding the potential medical benefits of stem cell research and its implications for public expecations were notably absent from the public discouse prior to the passage of Prop. 71, though they were later noted by a number of scientific and institutional actors. The reasons for this phenomenom are unclear, but perhaps point to the reluctance on the part of the scientific and medical communities to openly question the value of this line of research or to critcize each other; fears about aligning with religious or other actors opposed to hESC research; or the influence of commercial, academic and media interests in framing and limiting crucial debate."

But even before the strategic plan emerged, CIRM officials talked of managing expectations and avoiding hype although the message was less than visible in the media.

The Center for Genetics and Society of Oakland, Ca., recently conducted a briefing on the politics of stem cell research for reporters and focused on the exaggeration question. Marcy Darnovsky, associate executive director of the center, said,

"Exaggeration is really one of the hallmarks of this issue. It’s pervasive on both sides of the debate, and each side’s hyperbole feeds the hyperbole of the other."

She continued:

"Just recently the Democratic Senate candidate from Missouri, who strongly supports the stem cell initiative (in that state), used the words "lifesaving," "cure," or "save [a life]" 22 times in a 732-word interview published by the Associated Press.

"Statements like these seriously degrade public understanding and distort political discourse. Perhaps more surprisingly, similar exaggerations have also become common in the world of science, in statements by scientists about stem cell research. It’s always been considered a matter of scientific integrity to refrain from making claims in the absence of clear evidence. But in the stem cell world, that principle is being regularly violated.

"One example: It’s common to hear that embryonic stem cell research will result in cures for Alzheimer’s disease, when in fact, unfortunately, the idea that stem cells have the potential to treat Alzheimer’s is far-fetched.

"Knowing this, Rick Weiss, the Washington Post’s science reporter, called a prominent stem cell and neurology researcher to ask why he and his colleagues weren’t correcting the misunderstanding. The scientist’s answer: 'To start with, people need a fairy tale... they need a story line that's relatively simple to understand.'"

CIRM has a difficult road. It must maintain the public's faith, which does require the delivery of easily understood messages with a vision of hope. But the controversy involving Advanced Cell Technology's report on stem cell extraction shows how nuances make a big difference. The $6 billion (including interest) that CIRM will cost taxpayers requires results. If something tangible and understandable is not forthcoming in a few years, it may erode public support for an endeavor that once gained 59 percent approval of the state's voters.

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Below you can find the verbatim statements made by Darnovsky and her colleague, Jesse Reynolds, at the Sept. 19 news briefing for editors and reporters. The statements are not currently available on the center's web site.