The state of California is preparing to make a bet of up to $40
 million on a fast-moving field that promises to revolutionize
 medicine and ultimately lead to personalized 
stem
 cell treatments that can be tailored
 for a patient’s genetic makeup.
 Directors of the California 
stem
 cell agency are meeting in Berkeley
 on Wednesday to create one or two 
stem
 cell genomic centers that they
 predict will make the state a world leader in the new field.
 Scientists and businesses from biotech centers in the 
Bay
 Area, San
 Diego and elsewhere are competing
 for the money.
 The move into genomics comes as the $3 billion agency struggles
 to fulfill the promises of the ballot initiative campaign of 2004,
 when voters approved its creation with a total of $6 billion in
 
state
 spending, including the interest on
 bonds sold to finance the endeavor. So far, no therapies or cures
 have emerged from the 
California
 Institute for Regenerative Medicine
 (CIRM), as the agency is formally known. It will run out of cash for
 new awards in less than three years and needs some high-profile
 results to raise more money. 
 
 Scientists and biotech businesses say they hope that genomics,
 the study of genes and their relationships, can lead to a catalog of
 disease genes and pave the way for new therapies that are tailored
 to individual needs. Linking 
stem
 cell treatments, which also promise
 extraordinary results, could provide even more effective treatments.
 
UC
 Davis stem
 cell researcher and blogger Paul
 Knoepfler describes the 
stem
 cell genome effort as part of a
 “revolution.”
 “Genomics is going to become a key part of all of our lives
 whether you like it to be or not,” he says on his blog. 
 
 “Right now, in a lot of ways, doctors are making educated
 guesses as to how to treat us patients more generally,” Knoepfler
 says. “By knowing our genomic information, our genotype – the
 information tucked away in our genomes –they could be making far
 more educated choices about treatments, and we could be making far
 more informed decisions about our health.” 
 
 The 
National
 Institutes of Health says that genes
 play a role in nine out of the 10 leading causes of death in this
 country. “Genomics is helping researchers discover why some people
 get sick from certain infections, environmental factors and
 behaviors, while others do not,” the institute says.
 The nascent field is not without controversy. The 
U.S.
 Food and Drug Administration
 recently cracked down on the Google-backed genetics firm 23andMe of
 
Mountain
 View, saying that it had failed to
 show that its testing produced accurate results. The company last
 month said it would stop providing health information with its
 tests. The danger to the public, say some medical experts, is that
 people might act on inaccurate or poorly understood genetic
 information and unnecessarily undergo drastic or harmful procedures
 intended to ward off future disease. 
 
 Such concerns haven’t slowed growth in the genomics industry,
 however. Various studies say that the current annual sales of
 genomic products exceed $3 billion and peg the annual growth rate at
 anywhere from 10 percent to 17 percent.
 The 
stem
 cell agency two years ago this month
 sized up the situation and decided it was time to jump in. The
 agency’s governing board gave the go-ahead – on a voice vote
 with virtually no discussion – to the concept behind this week’s
 awards. CIRM directors had already been primed at the time by a
 presentation by Craig Venter, head of the La Jolla Institute bearing
 his name and internationally famed for his genomics work. Venter
 told the CIRM board that “there will not be any clinical 
stem
 cell applications without
 understanding genomics.” 
 
 Venter said genomics is needed to tell whether a particular 
stem
 cell therapy will cause more harm
 than good. Venter also told the board that he already had embarked
 on a 
stem
 cell genome effort. He is believed
 to be competing for the CIRM funding, and his talk raised eyebrows
 among some researchers because it was so closely tied to the board
 action.
 The agency opened the door to applications from researchers and
 institutions in October 2012, eight months after the talk by Venter,
 who appeared at the agency’s invitation. The review of those
 applications and the identities of the applicants are cloaked in
 secrecy, which is the traditional way scientific grants are awarded
 in this country even when they involve public funds.
 A combination of out-of-state scientists and six CIRM board
 members scores the grants and makes its decisions. The full,
 29-member CIRM board will have the final say in a public meeting in
 Berkeley on Wednesday, but it almost never departs from the
 recommendations for approval by its reviewers. CIRM announces only
 the names of the winners and does not release the names of rejected
 applicants because it might embarrass them. 
 
 Last week, CIRM President Alan Trounson and his staff recommended
 funding only one of the applications – for $33 million –
 although reviewers had approved four, according to documents at the
 CIRM website. No public explanation was immediately provided, except
 that CIRM spokesman Kevin McCormack said the reviewers actually “did
 not recommend funding all of the applications,” although that was
 clearly stated on the website, as has been the practice on the
 review of thousands of previous applications.
 The funding round is budgeted for $40 million, but could be more
 or less depending on the wishes of the board.
 A number of the major educational institutions in the state are
 likely to be involved in this week’s awards. Stanford University’s
 name surfaced last year when a conflict-of-interest violation in the
 initial grant review was reported by the California 
Stem
 Cell Report. CIRM grant reviewer Lee
 Hood of Seattle, renowned internationally for his genomics work,
 acknowledged that he had failed to disclose his conflict in
 connection with a $24 million application involving Irv Weissman,
 director of Stanford’s Institute for 
Stem
 Cell Biology and 
Regenerative
 Medicine.  Weissman and Hood are
 longtime friends and own property together in Montana.
 The closed-door review also marked the first time in CIRM’s
 history that reviewers, all from out of state, failed to finish with
 a decision supporting any of the proposals, according to CIRM.
 Reviewers’ comments were sent back to applicants, who resubmitted
 their proposals for review in November in another closed-door
 session. This time, Hood did not participate. 
 
 In addition to Stanford, California enterprises that have a
 strong interest in genomics and that are possibly involved in the
 competition include: Illumina and Sequenom of San Diego, Life
 Technologies of Carlsbad, CombiMatrix of Irvine, Pacific Biosciences
 of 
Menlo
 Park and Complete Genomics of
 Mountain View, which is owned by BGI, a Chinese business that is the
 largest genomics sequencing firm in the world. Others include
 Scripps, the San Diego Supercomputer Center at 
UC
 San Diego, the Novartis Genomics
 Institute and Fate Therapeutics, both of San Diego, and 
UC
 Santa Cruz.
 UC
 Davis has just begun an $18 million
 genome operation in partnership with BGI, but Richard Michelmore,
 director of the Davis Genome Center, said it was not involved in any
 of the CIRM applications. (Ken Burtis, who is a member of the
 faculty of the Davis Genome Center, is a member of the CIRM
 governing board.) 
 
 The expected winner of the $33 million award is a group headed by
 Stanford University’s Michael Snyder, director of its Center for
 Genomics and Personalized Medicine, based on documents posted Friday
 on the 
stem
 cell agency’s website. 
 
 
 David Jensen publishes the California Stem
 Cell Report –
 californiastemcellreport.blogspot.com --and has followed the stem
 cell agency since 2005.