Excessive Haste on $300,000 Stem Cell PR Contract

The California stem cell agency's plan to hire a public relations firm for $300,000 is a case of misplaced priorities.

It is quite clear that CIRM needs to move swiftly on its communications needs, particularly in light of the emphasis placed on public education by both its interim and incoming presidents.

But first CIRM needs to find a permanent chief communications officer. Otherwise, the agency will be signing a major contract without consulting the person who will have responsibility for overseeing it. Premature selection of a PR firm, in fact, could hinder the hiring of a top-notch person, who might look askance at the choice or at the management that chooses to take such precipitous action.

CIRM will be issuing the contract without what amounts to very necessary "peer review." And that is the kind of scrutiny that a skilled communications professional would give any prospective PR firm.

Some also question the need for a PR firm, period. One is John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumer Rights, who argues for a minimalist approach.

Simpson, who is a practitioner of the fine art of PR, among other things, told the California Stem Cell Report in part (his full comments are carried in the item below),

"People who hire PR firms are more interested in image than in substance. The way you get good media relations is simple: Do good work in an open way and answer all questions candidly.

"CIRM needs a committed and knowledgeable communications officer and an assistant completely familiar with all CIRM and ICOC activities. With the current downsizing in the news business many such talented people are available."

However, we do not believe that CIRM can fulfill its major communications responsibilities with two persons. CIRM is limited by law to no more than 50 employees; it now has about 26. Given the limit, a good communications firm would be necessary to execute the agency's ambitious public education plans outlined in the strategic plan. Without outside help, it would require a personnel commitment that probably is beyond CIRM.

And the outside help should be picked under the direction of CIRM's own communications expert, which is what that person is hired to do..

CIRM has gone through two PR firms and two staff PR persons in its short history. The largest contract $378,000) went to Edelman PR and generated some dissatisfaction at CIRM, which is at least partial evidence that the agency needs expert help in picking a new firm.

Regardless, any contract will generate negative attention. Reporters and editors in the mainstream media have a jaundiced view of highly paid PR firms. Too often they fail to serve either their masters or the media well.

(Here is a link to the request for bids on the contract, which are due Nov. 30. The request says that the contract could be awarded prior to end of the year.)

FTCR on $300,000 PR Plan

Here is what John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumer Rights, had to say about the CIRM's $300,000 plan to hire a public relations firm, perhaps before the beginning of the year.

"People who hire PR firms are more interested in image than in substance. The way you get good media relations is simple: Do good work in an open way and answer all questions candidly.

"CIRM needs a committed and knowledgeable communications officer and an assistant completely familiar with all CIRM and ICOC activities. With the current downsizing in the news business many such talented people are available.

"In a rare case, perhaps for a specific large task, under the close direction and supervision of the CIRM communications officer, there might be a benefit from an outside consultant.

"It's absolutely essential that the communications officer play the key role in hiring any communications consultants. Consider it peer review – the scientists should understand that concept.

"CIRM should put a top priority on hiring a communications officer."

"Instead, what the RFP calls for won't facilitate communication with the media. It will hinder it and irritate the working press.

"CIRM will end up wasting $300,000 of taxpayer money and the ICOC will be wondering why they are unhappy with the news coverage they get."

Fresh Comment

Mark Braly has posted a comment on the item below.

CIRM: An Evaluation at Age Three

The Sacramento Bee this morning carried an evaluation of the performance of the California stem cell agency, which is three years old this month.

Produced by this writer, the opinion piece said, among other things,

"By many measures, the institute is a huge success. Its impact stretches well beyond state boundaries and has stimulated the growth of similar research efforts in six other states and excitement in even more. The agency has established what are widely regarded as the toughest research and ethical standards for embryonic stem cell research in the nation. It has pioneered development of revenue sharing requirements that will come into play if successful medical therapies are created.

"But by other standards, including its own strategic plan, the institute doesn't measure up. The money is not flowing as fast as called for. Rosy campaign promises of cures and an economic boom still await fulfillment. Built-in conflicts of interests pervade the institute's activities. A penchant for closed-door grant reviews and secrecy screens much of the institute's most important decisions from public view. And, more than once, calls have arisen for the resignation of its chairman, Robert Klein, a man who triggers both admiration and animosity."

Given the space constraints of print media, condensation required the omission of much more that could be said, both pro and con. To provide a more comprehensive picture, we are carrying below a statement by California stem cell chairman Robert Klein and comments from CIRM's chief communications officer, Dale Carlson, prior to his departure from the agency.

Also useful are the following items: CIRM's strategic plan, the California state auditor's report on CIRM, a report by the Foundation for Taxpayer and Consumer Rights, a report and update by the Center for Genetics and Society and remarks by interim CIRM president Richard Murphy from the transcript (pages 16-25) of the October Oversight Committee meeting

Your comments are invited as well. You can post them directly by clicking on the word "comments" at the end of this item. We prefer that you use your name when commenting, but remarks can be posted anonymously, protected from disclosure to even this writer by the provider (Google) of this web site. Or you can send your comments directly to me: djensen@californiastemcellreport.com.

Text of Statement from Robert Klein

As part of the reporting for the Nov. 11 article in The Bee, we asked Robert Klein, chairman of the California Institute for Regenerative Medicine, for a statement on the accomplishments and challenges facing the agency. Here is the text of what he provided.

"For families suffering from chronic disease or injury, Proposition 71 has brought hope; for medical scientists who have dedicated their lives to reducing human suffering, it has been an inspiration; and for patient organizations, it has created a model for a paradigm change in the structure, scope and term of medical research funding in America. To date, approximately $210 million in grants have been approved by the governing board after a competitive, scientific peer review process, and another $300 million is in process. All elements of the court system in California, including the Supreme Court, have exhaustively reviewed this grant making system, the medical and ethical standards, the conflicts policies and the constitutional authority of the governing board and the agency and the Supreme Court has found all of the initiative’s aspects to be constitutional and operated through the agency and the board in a manner completely consistent with the statutory intent and all state laws.

"California has become the largest funding agency in the world for embryonic stem cell research, creating history in funding medical research, as the intellectual health care capital of the society, with long-term state bonds. The great universities, research hospitals, and research institutions of California have recruited world class scientists and clinicians to lead and inspire the medical research programs of California. At the funding agency itself, Dr. Richard Murphy, the former President of the Salk Institute, is building an extraordinary scientific organization and Dr. Alan Trounson, a global leader in stem cell research, will assume the Presidency by the end of this year.

"Globally, California’s performance under Proposition 71 has earned the state agency a world class leadership position, with California serving as a member of the International Stem Cell Forum on an equal membership standing with 19 member nations. Within the United States, California’s grant approvals in 2007 alone are approximately seven times the funding by the National Institutes of Health for embryonic stem cell research. California’s medical and ethical research standards, drawn up in collaboration with the National Academy of Sciences, have become an international model and the new “gold standard” for our nation, with the state of Illinois adopting them in their entirety just four months ago.


"Challenges

"Proposition 71, its governing board, and the funding agency created by Prop 71 face a number of immediate challenges as the momentum of stem cell medical research funding increases.

"First, its preliminary strategic plan must be examined and strengthened as the new President of the agency, Dr. Alan Trounson, brings global scientific credentials and insights to broaden the strategic path while closing research gaps in the plan like immunology, which is so critical to implementing stem cell replacement therapies for Parkinson’s, HIV/AIDS, diabetes and heart disease. As another example, strategic initiatives in immunology might broaden the feasible applications of existing adult stem cell therapies, by utilizing embryonic stem cells as a source of immune tolerance cell transplants. Adult stem cell therapies have raised survival rates for patients with leukemia or multiple myeloma (a bone cancer) from six percent to the 70% plus range; but, these therapies currently only reach the 40% of patient candidates for whom a sufficient immune system match can be found. By strategically focusing on immunology challenges to expand the reach of adult stem cell therapies, more lives may be saved when scientific breakthroughs in immunology are combined with the immune tolerance of embryonic stem cells and/or the possibility of immune system matches through SCNT (immune matched stem cells) breakthroughs.

"Second, stretching the resources approved by the voters - to fund more grants (over time) – by creating a revolving loan fund (to compliment the grant program) could have a dramatic impact on the range of therapeutic advances the agency can fund. The board has just begun phase two of the financial plan by studying how to implement the loan provisions of the initiative. A basic model of revolving seven year loans, as a substitute for some grants when dealing with the private sector, will be investigated over the next year. Potentially, a loan program could recycle over $1.5 billion – in the first 15-17 years of the agency’s life – bringing the total effective resources to fund medical research up to $4.5 billion.

"Third, the board and the agency need to launch a major public information program, including a specific focus on the upcoming human embryonic stem cell clinical trials. These clinical trials, over time, bring the possibility of remarkable medical advancement, but they also bring the potential for initial tragedies, despite the best safety procedures. Even with the benefit of extensive animal, pre-clinical trials, setbacks may occur – particularly given the broad spectrum of therapies and chronic disease challenges. The patients will have independent medical doctors advising them, along with family and friends; but, pre-clinical animal trials are not completely predictive of human outcomes. We must respect each patient’s decision to take “managed and reasonable” risks that may redeem their futures or save their lives. Medical therapies for the patients in the trials and all future generations are dependent upon the courage of individual patients, if medicine is to advance. With a deep reverence for life, we must inform the California public and every patient about these risks and build the patience and understanding that will be critical elements of medical research risk tolerance, if we are to secure the path to therapeutic success, which will involve many attempts and many 'trials.'"

Text of CIRM Statement

Earlier this year, we asked Dale Carlson, then CIRM's chief communications officer, for a perspective on the performance of the California stem cell agency. Here is the text of what he provided.

"The early history of CIRM is remarkable on a number of points, particularly given constraints on our budget and staff imposed by the delay in issuing bonds.

"The project is innovative from its inception: no one has ever funded scientific research with debt financing. Governments float bonds for public capital projects routinely – for roads, schools, prisons, libraries, water storage and transport, and other physical infrastructure needs – but never before for the development of intellectual capital until California voters approved Proposition 71. Similar bond programs are now proposed in New York, Texas, Massachusetts, and New Jersey, and have been considered by states in Australia. I don’t offer that as an example of something CIRM has ‘done right,’ but to establish as background the fact that everything we’ve done since is new, untried, and uncharted.

"The CIRM Scientific Strategic Plan specifies clear objectives and funding initiatives for 10 years. The fact that we have a 10-year plan is remarkable. I know of no other government agency (or public company for that matter) that’s ever developed such a far-sighted blueprint for its activities. It sets specific goals and benchmarks so the public can measure our progress. It lays out a detailed course of action for the six months and three years following its adoption. It does not dwell on generalities, as is common in strategic plans for public agencies. We were lauded for being realistic in our goals and for the open, public process used to draft that document, including the scientific meeting held in 2005 to assess the state of stem cell research globally.

"Our medical and ethical standards for research go beyond any in place or recommended by other scientific funding organizations. In at least one case, they’ve been adopted wholesale by another state.

"Our intellectual property policy for non-profits and the for-profit policy currently in development go beyond those of other private and public funding agencies. Again, some believe our requirements go too far, some not far enough. And again, this is another instance where we’re largely working without benefit of a successful model in place at the federal or state level.

"We’ve issued four RFAs, reviewed more than 350 applications, and brought recommendations to our governing board. In each instance, the time from RFA concept approval to grant approval has been far shorter than researchers have seen from other agencies. (Have I mentioned that we have limited staff for this work?) To date, 136 grants totaling more than $208 million have been awarded or approved at 23 institutions.

"We commissioned the Institute of Medicine to hold a conference on the risks to women who donate oocytes, the first meeting ever held on this subject.

"The Institute’s global leadership is well-recognized, even before awarding significant research funds. We forged strong relations with foreign countries and international organizations of stem cell researchers. We were the only state invited to join these organizations. The International Stem Cell Forum will hold its annual meeting next year in California, after considering offers to host the session from Israel and China.

"Few have any experience organizing a new government agency from scratch, let alone one devoted to such a novel concept. We’ve struggled at times with the challenges and requirements that presents, and we’ve not always made the right decisions when first faced with a decision or dilemma. Where we’ve erred or fallen short, we’ve quickly changed course in favor of a better approach. The Bureau of State Audits report is a good example of that pattern. If the BSA found a problem in our policies or practices, we made no attempt to defend or justify our conduct. We simply said, “You’re right. We’ll fix it.” And we have, in most instances.

"Some do not believe the Institute operates with sufficient regard for public participation or scrutiny, particularly where the review of grant applications is involved. Without revisiting the extensive discussions we’ve had with our critics on these points, it’s clear the CIRM is more open, solicitous, and responsive to the public than any other agency – private or public – engaged in research funding. The conflict of interest policy we follow for grant reviewers exceeds the requirements in place at NIH and elsewhere."

Proposed Lab Grant Review Procedures Posted

The California stem cell agency has posted more information on its proposed procedures for the facilities group review of applications for $227 million in grants for construction of stem cell research labs.

You can see the 18-page Power Point presentation here. The San Francisco meeting to consider them is Nov. 15.

CIRM Rules for Grants to Businesses

The California stem cell agency is going to take a whack Nov. 16 at how it proposes to run its program for research grants to busineses, ranging from ethics to allowable expenses to sharing of biomedical materials.

Biotech businesses have plenty to chew on in the 47 pages of proposed policies that have been released in a nicely timely fashion. No excuses if they don't weigh in now.

The actual occasion is an "interested parties" meeting at sites in San Francisco and San Diego that will be linked telephonically. Here is an Internet link to the meeting notice, which includes a separate link to the 47 pages.

The Big Oil-Stem Cell Interface

The peripatetic John M. Simpson is a man of many parts.

As stem cell project director for the Foundation of Taxpayer and Consumer Rights of Santa Monica, Ca., he has followed the affairs of the California stem cell agency, a task that has kept him busy for more than two years. But on other occasions, his work for the foundation calls him to different venues.

Recently he was in downtown Los Angeles at an appearance of the chief executive officer of Chevron Oil. Simpson's job? Bestow the Golden Nozzle award on the chairman. Here is a link to a video that tells all.

More Details Due Friday on Lab Grant Meeting

Regarding the $227 million lab grant item below, Richard Murphy, interim president of CIRM, just sent us the following:

"The slides with the specifics for the meeting are in the process of being edited and should be available on the Web Friday."

How to Wrestle with Requests for $227 Million: CIRM Agenda Vague

The California stem cell agency will deal once again next week with its plans for its largest round of grants ever, but exactly what is on the agenda is a virtual mystery.

No matter. If you are looking for some cash to build labs, you better be at the Facilities Working Group session Nov. 15. The details are what counts here, and missing one could mean the loss of tens of millions of dollars.

On the agenda is something listed only as "Consideration of Process and Procedures for Major Facilities Grants Review Meeting." We queried CIRM for more details. None were forthcoming. Perhaps they will be available in time for applicants and other interested parties to make plans to be in San Francisco.

The facilities group will be dealing with the applications for $227 million in lab construction grants next year, following the scientific review and the first cut in January by the Oversight Committee. The scientific review will be behind closed doors but the facilities group session is scheduled to be public.

The Shifting Sands of Stem Cell Support

New Jersey voters on Tuesday sent a message to sanguine supporters of stem cell research in California: Do not assume that the public is always behind you.

Analysis this morning of the election results is a bit preliminary but news reports are characterizing the rejection of the $450 million stem cell research measure as a surprise.

And it is not good news for those in California who find reassurance in the 59 percent voter approval of Proposition 71 in 2004, the measure that created the state's $3 billion stem cell program.

We have pointed out previously that stem cell research is not well understood by the public. Support for it is weak despite often rosy polls that seem to indicate it is a motherhood issue, at least in the eyes of some at CIRM. That is not the case, as shown in a poll by the Pew Forum for Religion and Public Life. According to that survey, support dropped from 57 percent nationally 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 New Jersey vote signals that it is imperative for CIRM to move forward thoughtfully and effectively on its public education/PR plans and promptly fill the vacant position of chief communications officer.

The New Jersey vote showed the vulnerability of stem cell research in the political marketplace. Voters can be fickle. To forestall erosion of support in California, CIRM must move to shore up its weaknesses. Those include its penchant for closed doors and secrecy – all of which breed suspicion and provide a recipe for scandal.

CIRM Offers $300,000 PR Contract

"Anonymous" posted a comment on our "communications void" item below that merits some attention. Here it is, and here is the link to the RFP that the comment mentions. Our thanks to "anonymous."

"FYI - There is an RFP out for PR firms. The below is from Odwyerpr.com

"CALIFORNIA ISSUES $300K RFP FOR STEM CELL PR


"California's state-backed entity set up to distribute funds for stem cell research has issued a six-figure RFP for state, national and global public information and communications work.

"The California Institute for Regenerative Medicine is backed by $3 billion in bonds and distributes funds via an independent citizens' oversight committee, which plans to dole out nearly $300M each year over the next decade.

"The Institute has issued an RFP for a firm to handle its public information needs for the next year with a budget capped at $300K. The work includes a full media relations program, strategic counsel, outreach to patient advocacy and health organizations, and internal communications.

"The CIRM wants a firm steeped in education and advocacy for scientific and medical research, public funding and related topics.

"Proposals are due Nov. 30."

Science, Libel and the Law: A California Case

A California physician, who also serves on the UC Irvine faculty, says a lawsuit against him by a Korean stem cell scientist is an attempt to "stamp out any critical scrutiny" of the researcher's credentials and techniques.

The matter, which will hit a Los Angeles court room on Wednesday, pits Bruce Flamm against Kwang Yul Cha.

Flamm works at Kaiser Permanente in Riverside, Ca. Cha, an internationally known scientist, heads a "a vast conglomerate of medical facilities in Korea and the United States," according to legal filings by Flamm.

Last March the California stem cell agency awarded a $2.6 million grant to a nonprofit, Los Angeles subsidiary of the Cha organization. Directors of the agency approved the application without knowing the identity of the applicant, following a recommendation from another CIRM panel arrived at behind closed doors. Both procedures are standard for the agency. A flap arose when the media reported the applicant had links to Cha and reported the controversy surrounding the scientist. In September, the subsidiary withdrew its grant application.

The Flamm-Cha story began with a 2001 article by Cha and two other persons that was published in the Journal of Reproductive Medicine. Flamm said it reported that "distant intercessory prayer can double the success rate" of IVF. The article generated international attention and comment, including some from Flamm.

In August of this year, Cha filed a libel lawsuit against Flamm, saying that Flamm defamed him in a March 15, 2007, article in the Ob/Gyn News. In October Flamm filed what is known as an anti-SLAPP lawsuit against Cha.

Flamm's suit is based on a California law aimed at preventing stifling of public discussion through the use of lawsuits. SLAPP is an abbreviation for "strategic lawsuit against public participation."

Flamm is contending that his comments concerned matters of "significant public interest," are not prima facie defamatory and are protected by California's anti-SLAPP statute.

Flamm told the California Stem Cell Report via email that "Kwang Cha's attorneys will attempt to over-ride our anti-SLAPP motion" in Los Angeles Superior Court at 8:30 a.m. Pacific Standard Time on Wednesday.

WARF Stem Cell Patents: The Latest Chapter

Two groups challenging WARF's stem cell patents, an effort supported by the incoming president of the California stem cell agency, Alan Trounson, are rejecting the Wisconsin organization's latest attempt to beat back the move.

The Foundation for Taxpayer and Consumer Rights and the Public Patent Foundation said WARF's latest filings do not merit overturning a preliminary ruling against the organization.

You can find the latest legal argument by the two groups here. You can find the press release here.

Fresh Comment

"Anonymous" has posted a comment on the "high priests" item below. It includes a link to more details on American Chemical Society and its activities regarding open access.

High Priests vs. Open Access to Research

The high priests of the newspaper business – otherwise known as editors and publishers -- have learned about the power of the Internet the hard way. Their business is turning remorselessly downward as advertisers shift their dollars to chase readers who have abandoned print.

Now comes the turn of the high priests of scientific journals. And the forces at work are something that the California stem cell agency will have to confront as it deals increasingly with public access to publicly funded research findings and how quickly that access becomes available.

Merrill Goozner, director of the Integrity in Science project for the Center for Science in the Public Interest, wrote recently that both houses of Congress have approved legislation that would provide free public access to all published articles from NIH-funded research. The measure was opposed by publishers who say that their ability to support independent peer review requires exclusive copyrights.

Goozner cites an article in The Scientist that points out that there may be a link to profits, which in turn are linked to salaries, for example, at the American Chemical Society, which generates $500 million a year from its 36 journals. Several top executives at the society earn more than $750,000 a year.

Any researcher working for a private company knows that he who pays the piper calls the tune. The fact is that taxpayers finance this research. At the heart, they own it just as much as a bank owns a mortgaged house or shareholders own a company.

The Internet is like a tidal force. Resisting its imperative may appear to be possible in the short term, but over the long term the high priests will be sweep out to sea. The alternative is come up with a better business plan and to find a way to ride the tide instead fighting it.

Communications Void at California Stem Cell Agency

During the next few months, the California stem cell agency is embarking on two rounds of grants worth $312 million, with a multimillion dollar public outreach program in the wings -- all of that minus its top communications executive.

Dale Carlson resigned from his post as chief communications officer last month, saying that he wanted to return to the private sector. Carlson joined the agency August 2006 after serving as vice president for corporate affairs with the Pacific (stock) Exchange in San Francisco for 18 years.

Replacing Carlson will be a difficult task. He is a consummate professional, one of the best that we have encountered over decades of experience with practitioners of public relations. He had a keen grasp of the needs of CIRM and the needs of the media and how to achieve a balance that was in the best interest of his employer.

The communications job at CIRM is particularly difficult because it is a unique enterprise with complex responsibilities and tasks. By comparison, most government agencies are straightforward, as are businesses. But CIRM combines both government and business, along with science, politics, morality, ethics, religion and much more. Finding someone who will be knowledgeable and comfortable with the scope of CIRM activities will take considerable work.

Already we have seen some predictable slippage in CIRM's PR functions, relatively minor at this point. But with the $85 million faculty awards due in December and the far-reaching $227 million in lab grants, the need for top notch help looms large.

CIRM is looking for an interim communications person as well as a permanent replacement with a salary range of $130,000 to $195,000. It will certainly need someone on board, whether an outside firm or person, come January when the lab grants are scheduled for approval by the Oversight Committee.

Also coming up in 2008 is a public outreach program, which the strategic plan says could run $4.5 million. Both incoming CIRM President Alan Trounson and interim President Richard Murphy have identified the public education effort as a major priority.

Murphy told CIRM directors last month that the agency is considering hiring an outside firm that would work with "an internal public information coordinator." Murphy said the agency will begin a search for a "firm that is strong in medical affairs and journalism and has good relationships with government."

CIRM is coming out of an unsettled period that was at least a partial result of failure to fill the vacant presidential spot in a prompt fashion. CIRM's chief scientific officer, Arlene Chiu, has left and others as well. It is fair to speculate that absent the disruption Carlson might still be at the agency.

Carlson was the third communications person/firm in the last three years at CIRM, not including a whopping $378,000 contract with the Edelman PR firm. That track record reflects poorly on the agency. We suspect it is partially linked to micromanagement problems. It also may have to do with internal access issues. If the new communications chief is to serve CIRM well, he or she must have complete access at the highest levels of the organization. Otherwise, policies become locked in place without full consideration of all their public ramifications.

Public relations is one of those tasks that seem simple on the surface and consequently sometimes generates poorly informed and self-serving dabbling. The Oversight Committee at one point even engaged in writing PR practices into its grant administration regulations in a way that protected the interests of grant recipients over the agency itself.

CIRM needs to resolve such issues if it is to achieve its public outreach and education goals.

Update on Aussie Stem Cell Research Probe

The latest report out of Australia says that the investigation into the stem cell project at Monash University will be over by the end of this month.

Carly Crawford of the Herald Sun reported today that the probe, which is linked to incoming CIRM President Alan Trounson, is in its final stages. Crawford also wrote that Monash says it will return the $1 million in public funds if it is determined that misconduct occurred.

Trounson, who is not the subject of the investigation but oversaw the research, is clearing out his office prior to his move to California in January, the newspaper reported.

CIRM Director Nova Scores with IPO

It was not a bad financial week for Tina Nova, one of the directors of the California stem cell agency.

She is president of Genoptix of Carlsbad, Ca., which went public this week at $17 a share and then shot up at one point to $27.30. The shares closed at $24.97 today, up 27 cents for the day, even as the Dow Jones Industrial Averages plummeted 362 points.

Terri Somers of the San Diego Union-Tribune reported that the firm, which helps oncologists determine the best treatment for certain cancer victims, is the latest in a series of health-care connected firms to do well on their initial public offerings.

She wrote:

"Scott Sweet, managing director of IPOboutique.com, said investors were eager to snap up Genoptix shares after a recent surge in revenue that was atypical of a biomedical firm."

Dow Jones reported,

"Right now, what we have is a shortage of companies that actually have revenues and all that other good stuff," said Steve Brozak, a biotech and medical-devices analyst who is president of WBB Securities."

Trounson and Sale of Melbourne IVF

The financial affairs of Alan Trounson, the incoming president of the California stem cell agency, surfaced in this week in the Australian media.

Australian Bioethics picked up a report from the Australian Financial Review that said the sale of Melbourne IVF should mean $8.8 million (Australian) for Trounson.

According to Australian Bioethics, private equity firms are interested in buying the business for about $200 million. Melbourne IVF is the largest IVF clinic in Australia.

StemLifeLine: No to Third Party, Spare Embryo Decisions

Ana Krtolica, chief executive officer of StemLifeLine Inc. of San Carlos, Ca., offers the following on our item concerning the story in the San Francisco Chronicle about her firm. Among other things, the story said the company had triggered protests from both supporters and opponents of embryonic stem cell research.

"StemLifeLine is a life sciences company that offers individuals who have undergone in vitro fertilization, a unique option to develop stem cell lines from their surplus stored embryos.

"As former academic stem cell researchers, we learned that IVF patients who donated embryos for research often inquired about the possibility to access the stem cells derived from their embryos. This inspired us to develop the novel StemLifeLine service - the first of its kind in the world - for IVF patients who wish to develop their own stem cell lines.

"At StemLifeLine, we believe that it is up to IVF patients and not any third party to decide what should be done with their spare embryos. These patients invested financially, emotionally and physically into embryo generation and it is their choice, their genetic material and their responsibility to make the best decision for themselves and their families.

"It is also important to note that clients that choose to use our service may still benefit research while developing their own stem cell lines. The two options are not mutually exclusive. As researchers, the founders and staff at StemLifeLine are personally committed to supporting biomedical research and stem cell research, in particular. Therefore, we provide an option for clients to donate an additional portion of their stem cell lines to any non-profit research facility of their choice at no charge. However, this decision is left entirely up to each patient.

"Finally, there has been speculation about our pricing. Stem cell derivation is an expensive process that requires a high level of scientific expertise, state-of-the-art equipment and significant time investment. Nevertheless, we are able to provide this service for a price comparable to cord blood stem cell banking.

"To conclude, without having personal experience with the IVF process, none of us can fully understand how difficult it is to make a decision regarding the allocation of surplus embryos. Our goal at StemLifeLine is to offer an additional option to IVF patients and it is up to these patients and their families to make the best decision based on their individual needs and priorities."

No Interstate Stem Cell Cookbook

The Interstate Alliance on Stem Cell Research has decided not to offer model policies for openness and transparency throughout the nation or any other model regulations for that matter.

According to Warren Wollschlager, chair of the group, it will focus on compiling and sharing information from various states involved in stem cell research programs. He told the Boston Globe that there will be no national "cookbook." Wollschlager also said the group will not engage in direct advocacy efforts.

Wollschlarger reported that about 24 persons attended the group's two-day meeting last week in Boston, including a handful of public attendees. He said,

"As planned, we did discuss governance issues during the meeting, and clarified that the method by which the IASCR will meet its mission of fostering interstate collaboration is by compiling and sharing information about state specific statutes, regulation and policies. This commitment to collecting and sharing state information is reflected by the focus and charge of the various working groups. Working subcommittees are charged with compiling state specific information, checking out the accuracy of the information with the various states, and summarizing the data for the full committee. All final products of the IASCR will be posted on the IASCR website. I wanted to clarify that the IASCR will not be issuing policy recommendations or developing model statutory or regulatory language."

In an email to the California Stem Cell Report, Wollschlager said that all future meetings of the group will be open to the public.

He also said that the group's web site should be online about Dec. 3 and that the next meeting of the group will be in March or April of next year, probably in Washington, D.C.

ACT and Geron Talk About Clinical Trials

CNNMoney.com has a piece today on two California companies that report they are edging closer to clinical trials on treatments using human embryonic stem cells.

Aaron Smith wrote the article about Geron and Advanced Cell Technology. It also mentioned Novocell.

In the case of the first two companies, Smith said tests could begin as early as next year. However, schedules have slipped in the past.

Smith wrote:

"'What we're seeing now in the stem cell field is like a chess match,' said Stephen Brozak, analyst for WBB Securities. 'The early moves will ultimately dictate who succeeds in the stem cell space.'"

Geron's product involves spinal cord injuries and ACT's vision loss. Novocell is looking at diabetes.

Stem Cell Freeze Flap: Ethics, UC San Francisco, Stanford Involved

"Modern day frankenstein story," "undeniably creepy," "trying to improve the quality of life." Some of the comments on a story in the San Francisco Chronicle involving a firm that offers "to create 'personalized' stem cells from the spare embryos of fertility clinic clients."

The article Monday by Bernadette Tansey said the idea is to freeze the stem cells for possible later use – "insurance for the future" – in the event that medical breakthroughs could make use of them.

The company is StemLifeLine Inc. of San Carlos, which is located south of San Francisco. It charges as much as $7,000 to create and freeze the stem cells with storage costs of $350 currently. Additional fees of up to $2,000 could be charged.

Tansey said the firm's proposal has set off a "flash fire of protest" from both supporters and foes of stem cell research.

Forty-seven comments were filed by the public on the story(they can be read at the end of the Chronicle story). The wide range offers some insight into the magnitude of the public education challenges that stem cell research still faces. Particularly since the Chronicle audience presumably consists largely of stem cell supporters.

The story also reported that the firm's business has triggered something of a tussle involving folks from UC San Francisco and Stanford.

The head of StemLifeLine is Ana Krtolica(see photo), a former researcher at UC San Francisco. On the firm's advisory board is Susan Fisher, who heads the UC San Francisco stem cell program. Olga Genbacev, a member of the firm's board, is a scientist in Fisher's lab. Tansey also reported that "the company's staff and boards include present and former research collaborators of Fisher's."

One of the folks from Stanford arrayed against the firm's proposal was David Magnus, director of that university's Center for Biomedical Ethics. He told Tansey,

"These companies are essentially taking advantage of people's ignorance and fears to make a buck,"

Also commenting negatively from Stanford were Rene Reijo Pera, director of Stanford's stem cell program and formerly of UC San Francisco, and Chris Scott, director of the Stanford program on Stem Cells in Society.

In addition to the comments on the Chronicle site, Monya Baker in Nature's stem cell blog, The Niche, said that it is "troubling" that the company has failed to make any of its customers available for interviews and refuses to provide a copy of the contract that customers sign.

San Diego Wildfires and the Biotech Business

San Diego is one of the global centers for stem cell research. This week it was also the scene of disastrous wildfires that destroyed 2,000 homes and left $1 billion damage.

The fires meant personal tragedies for some, closures of businesses and loss of some research. The fires also served notice once again to businesses and researchers of the impact that natural disasters can suddenly have and the importance of emergency planning, especially in Southern California which is also in an earthquake zone.

Stem cell research and businesses are just one component of a large life science industry in the San Diego -- one that encompasses 500 firms and 36,000 employees.

In an effort to provide a partial view of the fire's impact, The California Stem Cell Report queried a handful of folks in the stem cell business in fire area.

In the case of Richard Murphy, interim president of the California stem cell agency, he was in San Francisco working as the fire advanced towards his home in Rancho Santa Fe. Murphy said the home was being rented while he worked in Northern California, and reported on Thursday that the house was safe.

Researcher Jeanne Loring of the Burnham Institute in La Jolla was in Maine at a stem cell meeting. She said via email that her house in Del Mar had been on the mandatory evacuation list but that it was safe. "I took a break from following the fires on the Internet to give a seminar to a class of a human ESC training course here in Bar Harbor."

She said that at one point both Burnham and neighboring Scripps were closed, but power remained on and the cell banks were okay. Salk and UC San Diego were also partially or completely closed at times.

Loring continued,

"Some experiments were lost just because the researchers were evacuated. Some people who were evacuated were staying at the labs. I offered my office couch, but I don't know if anyone took me up on it....One unexpected benefit was that the NIH gave grant applicants a grace period. We have a few more days to work on one stem cell grant from the Burnham that was due on Tuesday!"

Floyd Bloom, a member of the CIRM Oversight Committee and executive director for science communications at Scripps, said, "I've been hunkering down, trying to keep my mind off the tragedies by working."

Jay Blankenbeckler, a biotech manager at Invitrogen in Carlsbad in northern San Diego County, awoke early one morning in his Rancho Bernardo home to find high winds and approaching blazes. Time magazine quoted him as saying that mature palm trees in his yard were bent over.

He said,

"They were doing this swirling thing. My palm trees, 35 to 45 feet of palm tree, almost looked like a swizzle stick in a drink, moving around in a big circle."

He and his family evacuated, and at last report his home was still okay.

Bioworld Today reported that at one point half of the staff of BIOCOM, the Southern California industry association, was evacuated from their homes. The online publication reported that many biotech businesses had to close during the fire.

Invitrogen at one point sent most workers home from its main production facility. But it said shipments won't be affected, according to an article by Mike Nagle on us-pharmatechnologist.com. It has another distribution site in Maryland.

Nagle also reported that some biotech businesses at one point were in risk of losing buildings. He said,

"This poses several problems, not least of which is how to care for any animals kept at the facility and where to take them should they need to be evacuated. A further problem is what to with the, often very expensive, compounds used at each facility, many of which require special storage conditions, or are still being used in active experiments or haven't yet been fully analyzed.

"Notwithstanding the fact that much of these materials may intrinsically be commercially sensitive, this is where nearby but not at risk life sciences companies come into the equation, which obviously have the facilities to look after both research animals and chemicals.

"Of course, this is ignoring the more simple fact that a fire at a facility that contains vast amounts of chemicals could be an environmental disaster. However, the companies in the area will, of course, have made contingency plans for emergencies such as this - especially since this is not the first time California has been devastated by wildfires: four years ago, wildfires swept through Southern California, killing over 20 people."

Nagle said that the daily production of the life sciences companies in San Diego runs about $23 million a day.

Here is a link to a regularly updated map by the San Diego Union-Tribune of the fire zones in San Diego.

Fresh Comments

A "Mr. Gunn" has raised a question about our handling of the Australian stem cell investigation stories. We have a response for him. It all can be found under "comments" on the "malicious attack" item below.

Secrecy: A Recipe for Scandal

Seventeen California universities and research institutions have applied to the California stem cell agency for $227 million to build major new labs throughout the state.

It is single biggest round of grants in CIRM's short life.

As usual, CIRM refuses to release the names of the applicants, making it difficult for the public to comment, support or express reservations on the grants during the most critical stage of reviews. However, it is fair to say that any institution with a significant stem cell research presence will have applied along with those who are seeking to build that capacity. It is also fair to say that public disclosure of names of grant applicants, prior to formal review, would have avoided the flap earlier this year about a $2.6 million grant to CHA RMI in Los Angeles.

In the case of the lab grants, applicants are certain to include nearly all the University of California campuses, Stanford, USC and the San Diego stem cell consortium, which includes Salk, Scripps and Burnham in addition to UC San Diego.

So if you readers have any reservations about the ability of those institutions to make good use of a $20 million or so lab grant, you can email or write CIRM, whose web site -- www.cirm.ca.gov -- carries all the contact information.

Earlier this week, the California Stem Cell Report and the Foundation for Taxpayer and Consumer Rights appealed to the agency to reconsider its secrecy policies in connection with the use of $227 million in taxpayer funds. No, was CIRM's response.

The secrecy policies, however, fly in the face of the spirit if not the letter of the California Constitution, which states that the people of the state have a "broadly construed" right to access to information involving the public's business. The amendment to the constitution was approved by 83 percent of voters in 2004. That was the same year voters approved creation of the stem cell agency by only 59 percent.

CIRM is an agency controlled by a 29-person board that is riddled with conflicts of interest. Ultimately it is in the agency's own best interests to operate with more openness. Handing out hundreds of millions of dollars behind closed doors with no public disclosure of the conflicts involving reviewers is a recipe for scandal.

Trounson Hit with Malicious Attack

The incoming president for the California stem cell agency, Alan Trounson, is in the news again, this time as the target of a malicious, anonymous attack.

Here are the first three paragraphs of the story from the Australian:

"Monash University has condemned anonymous allegations that leading stem cell scientist Alan Trounson used fraudulent research to obtain federal funding as false and malicious.

"Professor Trounson and his colleagues at the Monash Immunology and Stem Cell Laboratories said the charge was without substance.

"They expressed shock that someone claiming to be a stem cell researcher would make such allegations."

Fresh Comment

A "Mr. Gunn" has posted a comment on the "No Support" item below. He supports the position of CIRM.

Pluripotent Possibilities at Interstate Conference on Stem Cell Research

A California watchdog organization is calling for national guidelines on government-funded stem cell research that would ensure openness, transparency and accountability in the multi-billion dollar state programs.

The appeal came from John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumer Rights (FTCR) in Santa Monica, Ca. The organization's recommendations came as the Wall Street Journal reported on a Congressional inquiry into transparency and conflict issues in another area of government-funded science – this one involving lung cancer research.

Simpson said in a letter to the Interstate Alliance for Stem Cell Research, which begins a meeting Wednesday(Oct. 24) in Boston, that it should commit to holding public meetings for all future sessions. Simpson was ousted from a meeting of the interstate group last May in California, although he had been invited to its first session. A representative of the National Academy of Sciences, which is backing the meetings of the interstate group, told Simpson the meeting was not open to the public despite the fact that it involved public officials and public money.

Simpson commended the group for holding a public session in Boston. He said,

"I fully expect the Interstate Alliance will have a major influence on rules and regulations in all the states that are represented. That means it is imperative that the public have access to your deliberations and the ability to offer input and comments. Given the potentially contentious nature of publicly funded stem cell research, the need for the utmost transparency is even greater than would otherwise be the case."

Simpson urged the alliance to create a working group to draft model regulations to ensure openness, transparency and accountability in the various state stem cell programs. He said,

"Such a working group should go beyond members of the state stem cell agencies and include representatives of organizations committed to public access in government operations."

Simpson's letter was directed to Warren Wollschlager, chairman of the interstate group. Simpson told the California Stem Cell Report that Wollschlager said he would bring up the openness issue at the Boston meeting.

The Wall Street Journal article highlighted some of the issues involved in openness and transparency in even relatively non-controversial research, much less the heated debate over human embryonic stem cell research.

The piece by David Armstrong said that the House Energy and Commerce Committee, which oversees medical-research issues,

"...was concerned that potential conflicts of interest 'could damage the credibility' of the decade long, $200 million National Lung Screening Trial. The results are expected to have a significant impact in standards for lung-cancer screening and who will pay for it.

"Two of the trial's principal investigators have testified as paid experts for tobacco companies facing lawsuits seeking to force them to pay for smokers' annual CT scans."

Our comment: The interstate alliance has an extraordinary opportunity to influence the ESC research activities across the country. National standards are needed. And for the foreseeable future, they are not likely to be forthcoming from our friends at the federal level. Embryonic stem cell research IS pluripotent. As it exists today with the many states involved, major opportunities exist and changes are possible in non-productive grant review processes that currently hobble creative endeavors. The growth of the state research efforts has great promise. It also has great peril -- if the state endeavors become closed-door, secret activities that enable anti-science forces to foster suspicion and fear. It would be a shame for the Interstate Alliance and the states involved in stem cell research not to take advantage of what is a once-in-a-lifetime opportunity to begin to chart new and better courses.

No Support From CIRM Group on Public Disclosure on Lab Grants

A move to reveal the identities of the major universities and research institutions seeking $227 million in California taxpayer funds for stem cell lab construction was turned aside today by a key committee of the state's stem cell agency.

The Foundation for Taxpayer and Consumer Rights of Santa Monica, Ca., and the California Stem Cell Report appealed to the Grants Working Group to make an expression of support for public disclosure of the names of institutions and for opening review of their applications to the public.

The group took no action on the requests. Only two members of the group responded. Marie Csete(see photo), a scientist from Emory University, said the most important elements of the review involve the work that is proposed at the facilities – not the labs themselves, which she described as "tools." She also noted that the reviewers are funding the work of their "competitors." California stem cell Chairman Robert Klein endorsed Csete's remarks in a brief comment.

Our comment. One of the stronger arguments for public disclosure and review is the fact that the scientific reviewers are dealing with the livelihoods of their professional competitors. While the reviewers are all from out-of-state, the stem cell world is truly global. It is also small and intensely competitive. We should also note that the reviewers are not eligible for funding from California. That contrasts with the NIH, whose grant reviewers are eligible for funding from that agency. At the California stem cell agency, scientific reviewers receive only a small stipend and expenses for the time they spend away from their own work. They basically do it for free with perhaps the major benefit coming from a chance to see interesting proposals from California scientists and meet with their peers at CIRM expense.

Below are the statements read to the grants group this morning.

Text of Statement by CSCR on Open Review of Lab Grants

Here is the statement by the California Stem Cell Report at the Oct. 23, 2007, meeting of the Grants Working Group of the California stem cell agency.

By way of introduction, my name is David Jensen and I publish the California Stem Cell Report on the Internet. I have followed the affairs of the California stem cell agency since December 2005 and have published nearly 1,400 items involving CIRM.

First, I want to express my appreciation for the work you are doing here today and tomorrow, especially to those of you from out-of-state. Spending two days in a hotel reviewing complex grant proposals – taking time away from your own work and families – is not a minor matter. Thank you.

My main point today involves the openness and transparency of the proceedings of the California Institute for Regenerative Medicine, an agency unlike any state department in California history. As a result of the enactment of Proposition 71, CIRM operates outside of much of the normal state government oversight and is virtually independent of the governor and legislature. At the same time, it is overseen by a board that includes employees of institutions that stand to benefit financially from the CIRM actions. In the case of the upcoming round of $222 million for lab construction, 17 of the 27 current members of the Oversight Committee could see their connected institutions benefit from a facilities grants.

Currently, review of applications from individual researchers is conducted behind closed doors. CIRM has decided to keep the discussions private in order to encourage maximum candor and frankness about the work of individuals, which would be discouraged if the reviews were conducted in a public.

However, applications for the major lab grants – which you will be reviewing in the not-too-distant future – are much different than those from the men and women who direct stem cell research labs. The applications for lab construction funds will come from huge institutions such as the University of California and other major educational and research enterprises. Their names and applications should be part of the public record. And your review of those applications for $222 million in public funds should be conducted in public.

It is hard to see a justification for a closed-door review of a lab grant application, for example, from UC Berkeley. In fact, the review of the lab grants will become public – but only after your group performs the most critical segment of the review. And that is where the public's interest is the greatest. One can argue that individual researchers and their applications should be discussed behind closed doors to avoid embarrassment and to encourage frankness. But that hardly applies in the case of an institution such as Berkeley, which regularly comes under the harshest form of public criticism with nary a flesh wound inflicted. Equating the sensitivities of UC Berkeley or other likely institutional applicants for lab grants to the sensitivities of an individual researcher would seem to defy common sense.

The California stem cell agency has a special public trust. One of its missions is to encourage public support and understanding of human embryonic stem cell research. And it should not hand the foes of good science additional weapons that can be used to attack such research. Conducting grant reviews unnecessarily behind closed doors only feeds suspicion and the worst sort of speculation. Openness and transparency inspire public confidence and make it clear to all that no mischief is afoot.

I urge you to consider making an informal expression of sentiment to CIRM and the Oversight Committee in favor of publicly identifying applicants, publicly releasing their applications and conducting the scientific review of the lab proposals in public. If there are segments of the applications that must be examined in private, that can easily be done in an executive session, just as the Oversight Committee does when it considers applications after your work is done.

Opening the doors on the lab grant review would reflect well on the agency and be an important step in fulfilling CIRM's promise of adherence to the highest standards of openness and transparency. Thank you.

Text of FTCR Statement on Open Review of Lab Grants

Here is the statement by the Foundation for Taxpayer and Consumer Rights presented at the Oct. 23, 2007, meeting of the Grants Working Group of the California stem cell agency.

First, I’d like to apologize for not being able to be present today and thank David Jensen of The California Stem Cell Report for reading this on my behalf. Second, I’d like to thank all of you for serving on the Grants Working Group. We truly appreciate your efforts.

By way of introduction, I’m John M. Simpson director of the Foundation for Taxpayer and Consumer Rights Stem Cell Oversight and Accountability Project. Funded by the Nathan Cummings Foundation since December 2005, the project seeks to ensure that the taxpayers funding California’s landmark $6 billion stem cell research program have affordable access to any of the discoveries they have funded. As part of the project we have challenged the validity of the stem cell patents held by WARF.

In a few minutes you will enter closed session to review the scientific merit of applications for New Faculty Awards. While I don’t agree, I understand the argument that the applicants’ names and the deliberations should be confidential to protect individual researchers from possible embarrassment.

I don’t intend to reargue that issue now. Rather, I’d like to ask you to look ahead a bit. Soon you will be weighing the scientific merit of requests from various California universities and research institutions for their share of $225 million in grants to build laboratories. As it now stands those institutions are not being identified and the reviews will be done in secret.

Ironically, the applications will be publicly reviewed later in the process by the Facilities Working Group when it weighs the proposals on their technical merits of design, construction and such.

To this outside observer that means it's OK to embarrass an institution because it can't design and build a decent building, but it's not all right to embarrass its scientists.

Sadly the public will inevitably view this as a remarkable self-serving, in-bred club that is doing scientific reviews. That's the real embarrassment. If scientists’ egos are so fragile they can't stand public scrutiny, they ought not to have a shot at public money. Nor should the institutions that employ such tender souls.

I ask you to please strike a blow for transparency that publicly funded stem cell research requires. Take the opportunity to show the public how the scientific review process works. Please take a vote amongst yourselves that urges the facilities applicants be identified and the scientific review be public.

Thank you.

More on Floyd Bloom

We have run across some additional details on Floyd Bloom, the latest appointee to the CIRM Oversight Committee, that are of some interest. He fills the position once held by David Baltimore, a Nobel Laureate and former president of Caltech. Bloom, in addition to being professor emeritus at Scripps, is executive director for science communications at that institution. Our earlier item on Bloom also mentioned Neurome, a firm he co-founded. Bloom told us that firm went out of business in September 2006.

Hitching Up Down Under

Alan Trounson, the incoming president of the California stem cell agency, says it will be a "very low key affair" with a few friends and a small reception.

You might call it a stem cell wedding. But not exactly one contemplated six months ago.

Trounson (see photo) and his partner for the last 19 years, Karin, will be getting married. As we all know, Trounson has taken a job in the United States. But Karin – not to mention their children -- will not be able to come along with him unless they perform the nuptials. So say US immigration authorities, despite Karin's Swedish and Australian citizenship and dual passports.

The couple have two boys: Karl, 16, and Alex, 6. Trounson has two other children, Kylie, a 30-year-old lawyer, playwright and actress, and Justin, 27, who has international interests in the tourist industry.

Trounson said Karin has a Ph.D. in women's health and would like to continue her career in California.

He told the California Stem Cell Report:

"We are very comfortable and supportive partners and have no problem in getting married."

He added,

"Karin thinks the event is worth celebrating but our commitment to each other is larger than this ceremony. The kids are joining in on the fun."

We figure the wedding feast will include roasted koala and aquavit. And the music? Well, probably didgeridoos and accordions.

Our congratulations to them both. Actually, congratulations to all four or is it six?

Rose Petals vs. Stem Cells

The case of the embryo vs. the California stem cell agency has been kicking around a couple of years or more – one of the reasons we did not pay much attention to it when it surfaced again recently.

But Kristen Philipkoski of Wired.com demonstrated the bizarre nature of the suit in an item last week.

Among other things, during a hearing in Pasadena, Ca., Philipkoski wrote that the attorney for the embryo "proceeded to scatter rose petals on the courtroom floor, saying they represented the California Institute of Regenerative Medicine destroying life." Philipkoski said that the judge "rolled her eyes."

CIRM Praised on California Political Blog

The New West Notes blog has taken a brief look at the life and times of the California stem cell agency – a largely laudatory review accompanied by a 9-minute video of California Attorney General Jerry Brown.

Bill Bradley, author of the blog and a longtime observer of California politics, uses the stem cell program as an example of how things can actually be accomplished in state government, as opposed the impasses on health care and water policy, among other issues.

Brown (photo above) is seen on a YouTube taken at what appears to be a campaign appearance last year at Advanced Cell Technology in Alameda. The video, although lengthy, has been edited to focus on Brown's stem cell remarks. In the video, he promises to be a "champion" of stem cell research in California and nationally. "I will do whatever I can to alleviate suffering," he says.

One of the interesting aspects of Bradley's item are the numerous comments on it from readers.

One, NickM, said,

"The embryonic stem cell research bond was one of the biggest special interest giveaways in history.

"Companies that stood to make hundreds of millions or billions APIECE by having the taxpayers fund their R&D (and their investors)donated millions to convince the taxpayers that this research wouldn't happen without billions in taxpayer support. It worked.

"So now the biotech conglomerates and VC firms have a huge subsidy, and we're all supposed to feel good about it.

"It's the Donald Trump model: convince someone else to pay your costs while you reap the benefits."

New CIRM Director No Intellectual Shrinking Violet

Consider the following from Floyd Bloom, the latest appointee to the board of directors of the largest single source in the world of funding for human embryonic stem cell research.

"A growing problem of major proportions has been staring us in the face for many decades. Until solved, this long-neglected problem presents a gigantic obstacle to the application of the discoveries flowing from biomedical research into deliverable standards of medical practice that could benefit all of society, both in the United States and globally. This problem is the imminent collapse of the American health system. Unless steps are taken soon to undertake a comprehensive restoration of our system, the profound advances in biomedical research so rapidly accruing today may never be effectively transformed into meaningful advances in health care for society.

"Today's term for such evolutions of discovery into application has been dubbed 'translational research'. The appealing notion that research advances travel from bench to bedside is laudable, but conceptually flawed."

Bloom made the statement in 2003 when he was was president of the American Association for the Advancement of Science. While some on the Oversight Committee of the California stem cell agency may share his sentiments, few have expressed them so publicly and eloquently. Indeed, Bloom's views seem, in many ways, a departure from the standard operating procedure at CIRM, which is somewhat wary of flying in the face of established scientific and medical culture.

Bloom (see photo) was appointed this month by state Treasurer Bill Lockyer to fill a vacancy on the 29-member CIRM Oversight Committee. Lockyer said that Bloom has "dedicated his life to biological science research and is responsible for numerous breakthroughs in neuroscience understanding."

Bloom retired in 2005 as chairman of the Scripps Research Department of Neuropharmacology in La Jolla, Ca. At the time, he said he planned to devote more time to Neurome, Inc., a La Jolla biotechnology firm involved research into human neurodegenerative diseases. Bloom co-founded the firm in 2000.

At one stage in his youth, according to an article on Molecular Interventions, Bloom was encouraged to go into journalism because of his penchant for telling stories. In 2002, he became editor-in-chief of Science, the AAAS journal. He spoke with Molecular Interventions about his views on running a magazine:

"The best thing is to have controversy in an intellectual manner because people read it. They like to see the Christians fight the lions, right? And so if you can engage in an intellectual discussion, then you attract readers and at the same time people get informed from the debate because they'll learn parts of alternative arguments."

Bloom, who also served both as president and chairman of the AAAS, carried his views beyond the pages of scientific media. A few years ago, he told the New York Times:

"I'd like for us to consider health care to be regarded as something like a public utility. To me, if we agree that universal coverage is something to be desired, is that really much different than the fact that we've all agreed that everyone in the country is entitled to have electricity, water, telephone connections, if they can pay for it. We have all kinds of ways to help people get those basic provisions of life.

"And health benefits could be viewed in exactly that same utilitarian way. It could be a corporate network like water power and electricity, with regulatory agencies that set the rates for profit."

Position Change: CIRM Now Permitting Public Comment at $85 Million Hearing

The California stem cell agency today reversed itself and decided to permit public comments prior to two days of closed hearings next week on requests for $85 million in grants to California researchers.

The change in position came quietly today as the agency posted a new agenda for the hearings on the CIRM web site that did not mention that it had been revised. The new posting specifically stated that public comment would be allowed. It also removed this sentence from the agenda::

"An open session will not be held for the meeting of October 23-24, 2007 as business will be limited to review of grant applications."

The change in public access followed disclosure earlier today by the California Stem Cell Report of the ban and subsequent complaints by at least one member of the CIRM Oversight Committee, David Serrano Sewell (see item below).

Comment on Ban on Public at $85 Million CIRM Meeting

David Serrano Sewell, a member of the CIRM Oversight Committee, sent the following on the "Public Barred" item below.

"Just read your item regarding the public being barred from the upcoming Grants Working Group meeting. To my recollection, those agendas have always included an opportunity for the public to address the working group. The failure to include such an item for this agenda was probably a honest mistake that must be corrected. I (and the the patient advocate working group members) support the public attendance at working group meetings. Thanks for catching this!"

Our comment: The agenda for the meeting in question contains a sentence that we cannot recall ever seeing before on a CIRM agenda:

"An open session will not be held for the meeting of October 23-24, 2007 as business will be limited to review of grant applications."

Interstate Stem Cell Issues Coming Up in Public Session Next Week

The Interstate Alliance for Stem Cell Research, which once ousted a member of the public from a meeting in California, will hold two days of open public meetings in Massachusetts next Wednesday and Thursday.

The agenda (see item below) for the group, operating under the auspices of the National Academy of Sciences, includes a host of major issues that states are grappling with across the country. They include model language for the term "acceptably derived," payment issues and health care for egg donors, certification of stem cell lines from other states and countries and the grant review process.

We applaud the decision to make the meeting public. Billions of dollars in public resources are involved along with the need to maintain confidence in embryonic stem cell research. Closed door meetings and secret processes generate suspicion and encourage the worst sort of speculation.

John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumers Rights, was the man ousted from last May's meeting. He says,

"I'm glad to see the change of heart. Too often the scientific establishment has displayed a paternalistic 'trust-us-we-know-best' attitude that in fact undercuts public support for science. Scientists need to engage and educate, otherwise we end up with the know-nothing attitude too often exemplified by the current administration."

Agenda for Public Meeting on Interstate Stem Cell Issues

Here is the agenda for next week's public interstate stem cell meeting.

Interstate Alliance for Stem Cell Research

British Consulate
Cambridge, MA
October 24-25, 2007
Agenda


October 24

12:00 pm Lunch (at Consulate)

1 pm Welcome and Introductions
Warren Wollschlager, Chair, Office of Research and Development, State of Connecticut and Fran Sharples, National Academies’ Secretariat for IASCR

Introduction of other participants

The purpose of this meeting is to review progress on the working group assignments made at the May 23-24 Irvine, CA meeting and to identify additional issues the IASCR needs to address.

1:15 pm Governance Issues - preliminary discussion: Warren Wollschlager

1:30 pm Report of Working Group on the development of a Glossary of Stem Cell Terms: William Lensch (Tab 1)

2:15 pm Report of Working Group on an IASCR Website: Fran Sharples, Susan Stayn, Eli Zupnick (Tab 2)

3:00 pm Break

3:15 pm Report of Working Groups on Developing Model Language for “Acceptably Derived;” Payment Issues and Health Care for Donors; and Certification of Stem Cell Lines from Other States and Countries (formation of standing committee): Marianne Horn, Geoff Lomax, Melissa Lopes, Susan Stayn, Ann Willey, Eileen Naughton, and Alta Charo (by phone) (Tab 3)

5:15 pm Adjourn meeting for the day

6:00 pm Reception (on site)



October 25

8:30 am Breakfast (at Consulate)

9:00 am Report of Working Group on Grant Reviews: Marianne Horn, Warren Wollschlager (Tab 4)

9:45 pm Report of Working Group of Legal Counsels on Role of Regulations vs. Guidelines and Policy Documents: Marianne Horn (Tab 5)

10:30 am Break

10:45 am Summary discussion of Working Group next steps

12:00 pm Working Lunch: Roles of International Society for Stem Cell Research: Jonathan Auerbach and Heather Rooke (Tab 6)

1:15 pm Governance Issues
Officers
Membership in IASCR
Budget
Roles of IASCR: information resource vs. policy development
Product branding

2:00 pm Recruitment of additional states and other members: discussion

2:30 pm Break

2:45 pm Working Group breakouts

3:30 pm Other agenda items TBD

4:00 pm Adjourn

Public Barred from Any Comment at $85 Million CIRM Meeting

Two days of closed-door meetings will be held in the San Francisco Bay area next week to consider the 59 applications for $85 million in faculty award grants to be handed out in December by the California stem cell agency.

The agency's Grants Working Group will meet next Tuesday and Wednesday at the Sheraton Gateway Hotel in Burlingame to make decisions on which grants to recommend to the Oversight Committee.

The agenda explicitly states there will be no open sessions at which the public can comment. That bars the public from even appearing to protest or comment on the lack of public access, which seems to be the first such ban by CIRM, an agency that has vowed to uphold the highest standards of openness and transparency. Previously, such meetings, including the very sensitive meetings involving the search for a new president, have included at least a brief session during which the public could comment.

Here is a list of the members of the Working Group, whose economic and professional links to applicants are secret. Also being withheld by CIRM decree are the names of the applicants for the state funding and even the institutions (including state-funded universities) where they are employed along with a general summary of the research they are proposing.

The Oversight Committee is scheduled to give out as many as 25 awards, making the odds pretty good for the 59 applicants. The awards could total as much as $3 million a year. Twenty-eight unnamed organizations are represented among employers of the individual applicants.

Aussie Stem Cell Probe Highlights Need for Maximum Openness at CIRM

John M. Simpson, stem cell project director for the Foundation for Taxpayer and Consumers Rights of Santa Monica, Ca., is one of the more diligent watchdogs of the California stem cell agency, which is funded by taxpayers to the tune of roughly $6 billion (including interest).

Simpson (see photo) and his organization support human embryonic stem cell research, but they also have concerns about CIRM, an organization unlike any other in California history. It is virtually untouchable by the governor or the legislature, a distinction enjoyed by no other state agency.

CIRM is also an organization with built-in conflicts of interest, all legal because they were approved by California voters in Prop. 71, which created the stem cell agency.

We believe that means that CIRM should operate with more disclosure and openness than any other state agency. Such openness is in CIRM's own best interest, given the impact that even a minor scandal might have.

All that is a preface to Simpson's comments below, carried verbatim, on the Australian-Trounson stem cell research inquiry(see the several items below). Here is what Simpson sent exclusively to the California Stem Cell Report.

"As word makes its way from Australia to the United States about an investigation of a researcher in Alan Trounson's Monash Immunology and Stem Cell Laboratories, one point is already clear.

"There must be complete transparency and accountability in publicly funded research.

"Trounson, who is to assume the presidency of the California Institute for Regenerative Medicine, is by all accounts not under investigation. A report from a panel of academics who examined the evidence of wrongdoing is 'imminent.'

"Everyone interested in California's stem cell program is waiting for that report to see what degree of culpability -- if any -- Trounson had for things apparently done by others in his laboratory.

"Even before the report's release, the situation once again demonstrates the need for oversight, transparency and accountability in scientific research. Time and time again around the world, too many scientists have bent the rules for their own personal gain. Research simply must not be funded without the highest degree of public scrutiny.

"CIRM staff demonstrated the necessary high standards when after its vetting process, two ICOC-approved research awards were not granted.

"I suspect Trounson will emerge from the Monash probe unscathed, and I hope it will be with an even stronger commitment to the standards of accountability and transparency required by CIRM.

"Nonetheless, the ICOC should review closely the Monash University report when it is available and not allow itself to be blinded by the glitter of a world-class researcher. Even before the report's details emerge, however, the need for transparency and openness in all aspects of publicly funded research is demonstrated yet again."

Does the Trounson Story Have Legs?

The Australian stem cell research flap involving Alan Trounson made its North American debut today in a story in the San Francisco Chronicle. It also surfaced in one of the more serious scientific magazines, the Scientist.

Stephen Pincock of the Scientist added some details on the research. He also indicated a conclusion to the investigation is imminent. Sabin Russell's story in the Chronicle pretty much recapped previous material.

A reader on the Scientist web site, only identified as Leah, commented, "Why are there so many scandals around stem cell research? What a waste of money."

A quick resolution of the investigation is in the best interest of the California stem cell agency and Trounson, the incoming president of the $3 billion enterprise. As the saying goes, justice delayed is justice denied. The other important point is whether this story has legs. Trounson is not the subject of the investigation, but his name is really what makes it newsworthy. And it is mentioned in every story. The longer the story lingers, the more often Trounson's name will be associated with allegations of dubious activity. Not good for either the agency or Trounson.