With more than 3.0 million page views and more than 5,000 items, this blog provides news and commentary on public policy, business and economic issues related to the $3 billion California stem cell agency. David Jensen, a retired California newsman, has published this blog since January 2005. His email address is djensen@californiastemcellreport.com.
Monday, May 02, 2005
Managing Stem Cell Expectations
It said in part:
“Now that the initiative is law, Proposition 71 supporters face a daunting challenge - how to manage lofty public expectations.
“Partly because of the P.R. campaign, many patient advocates and California taxpayers believe that medical miracles are imminent. In reality, most scientists say it will take years, and possibly decades, before embryonic stem cell treatments are proven and made widely available.”
Penhoet, Selling and Management
Some of the tidbits from a profile of the vice chairman of the stem cell agency in the San Francisco Chronicle. Reporter Alex Barnum wrote the piece that also tells us Penhoet learned some of his management skills that he used at Chiron from a year selling cars.
"If you have highly productive, highly trained people working for you, you can't order them around every day. ... You have to sell them on the concepts that you're trying to put forward,” Penhoet told Barnum.
The story also reported:
“Penhoet's restless ambition has led him down other paths as well. After a stint as dean of the UC Berkeley School of Public Health, he is now president of the Gordon and Betty Moore Foundation, the country's sixth largest philanthropic organization, where his job is making sure that $5 billion is put to work in solving some of society's toughest problems.”
Barnum wrote, “What's unusual, friends and colleagues say, is that someone of such ambition is also a genuinely nice guy, modest and open-minded. The same characteristics that served him in academia and business -- an ability to attract talented people, a skill at solving problems and defusing difficult situations -- will be valuable in his latest, most public role as vice chair of the stem cell board, they say.”
Saturday, April 30, 2005
The Bee: Sad Situation At CIRM
The piece said that while stem cell chairman Robert Klein pays lip service to NIH standards, he does not seem ready to go along with the latest that have resulted in the resignation of some NIH scientists.
“Thus we have a sad situation. Weak standards in California are attracting scientists who don't want to deal with new ethics standards in Washington. This wasn't the magnet effect voters envisioned when they approved Proposition 71."
“Pants Off” in Sacramento
Reporter Steve Johnson of the San Jose Mercury News wrote:
“Oleg Kaganovich, chief executive of the Sacramento Area Regional Technology Alliance, which helped put together that city's bid, wouldn't talk in detail about what Sacramento's backers have planned for the visiting board members. 'It's going to be somewhat of a surprise,' he said. 'We're going to wow the pants off of these people.'''
It's not clear whether he was talking about the Sacramento Kings' smashing victory over Seattle Friday night in the NBA playoffs.
Reporter Carl Hall also had an account of the site selection committee's visit to San Francisco on Friday.
“There was free Hetch Hetchy bottled water. The Giants scoreboard at SBC Park signaled a welcome. And the bus ran more or less on time,” Hall wrote.
“San Francisco officialdom did everything but hire Tony Bennett to melt the hearts of state officials shopping this weekend for a headquarters city on behalf of California's Proposition 71 stem cell program.”
Were the decision makers impressed? “Side talk among members was also ruled out,” Hall wrote. “If anyone gave a clue as to how he or she was leaning on Friday, it was well out of the earshot of the mayor and the media.”
By the way, the next Kings-Seattle game is Sunday night at 7:30 p.m. West Coast time.
Friday, April 29, 2005
HQ Countdown: Tittering and Cheesiness
Ken Garcia wrote a “personal perspective” in the San Francisco Chronicle on the behind-the-scenes tittering in San Francisco.
“No one I spoke with would comment on the record, but it's fair to say that San Francisco officials are not exactly saddened by San Diego's woes. It certainly can't help if the future capital of the world's biggest private stem- cell program is mired in scandal. With San Diego reeling from another mayor-go- round -- (Mayor) Murphy was re-elected in November after a judge threw out thousands of write-in ballots that would have elevated surfer/councilwoman Donna Frye to the post -- it's hard to see how the selection committee wouldn't at least consider it a factor.
"'It does raise some interesting questions,' one City Hall official said. 'But it's not our place to raise them.'''
Garcia skated over San Francisco's own rather checkered political history. Another minor note: Frye is not a surfer; she ran a surf shop.
Reporter Terri Hardy of The Sacramento Bee wrote that local officials there staged a “cheesy” news conference Thursday to support the Sacramento bid but were quite unified when they did it. She quoted Sacramento Mayor Heather Fargo as saying, "Sacramento is in fact the best location, and location should be critical. The Capitol is where stem cell decisions are made."
Reporter Rachael Gordon of the Chronicle covered the perspective from all four cities. The San Diego Union Tribune did not appear to carry a story on the matter this morning.
Thursday, April 28, 2005
Not Even Bread, Only Water
“So cautious is the (selection) committee that cities were warned they could provide no food or gifts during site visits. Said one staff member, 'Only coffee or water can be served,'" wrote reporter Terri Hardy in The Sacramento Bee.
Reporter Carl Hall of the San Francisco Chronicle pretty much says Baghdad-by-the-Bay has it in the bag. But he also reported, “San Francisco officials made it clear they are not yet ready to start celebrating -- and not only because they want to avoid looking too smug in advance of the key votes.
“The reason the subcommittee is recommending a runner-up city is that a separate group from the institute is now searching for a permanent chief executive. Officials want a couple of possibilities in the event that person has a strong preference on location.”
Is the River City Bid Underwater?
Reporter Laura Mecoy weighed that question in a story on the competition for the site. She wrote that Sacramento “is closest to state government and has the lowest cost of living.
“Problem is, neither point is getting much attention from the site selection panel that will visit Sacramento and the three other finalists over the next four days.
“The panel plans to use the site visits to help advise the full stem cell board when it picks the headquarters city on May 6.
"'We are working against the notion that the Legislature should have no role in the stem cell program,' said Sen. Deborah Ortiz, D-Sacramento.
“Tom Zeidner, Sacramento's senior economic development project manager, said the stem cell agency's chairman also told him 'rather curtly' that cost of living didn't matter.
“Most of the employees at the California Institute for Regenerative Medicine are expected to earn more than $100,000 a year. Its board is considering paying up to $600,000 to hire a president.”
The Sacramento News and Review offered up an editorial touting the Big Tomato's bid. But the editorial may have actually been a disincentive. “What better location than Sacramento--with its taxpayer attentiveness, watchdog organizations and capital press corp--to keep this agency above reproach in its role to safeguard the public's interest in all things stem-cell?” the newspaper wrote. Given the agency's sketchy relations with Capitol denizens, it may not want to be any closer than San Francisco, at the very least.
Wednesday, April 27, 2005
Erratic Fallout
Venturing into the Stem Cell Business
Their actions follow last fall's approval of Prop. 71 in California, which had major support from some venture capitalists in that state. Robert Klein, chairman of the California stem cell agency, told thedeal.com that his venture capital supporters had personal reasons for supporting the measure.
One venture capitalist, Michael Goldberg, sits on the Oversight Committee of Klein's agency. The entry of successful business men and women into public life is to be lauded. They bring much energy, talent and a different perspective to difficult issues. Nonetheless venture capitalists make their bones by flinty attention to their economic self-interest. As in any business deal, it behooves public officials to exercise equally flinty attention in dealing with venture capitalists.
Here is more on what writer Alex Kash of thedeal.com had to say about venture capitalists and stem cells and their effort in Massachusetts:
“It marked the second time VCs have rallied at the state level to support
the controversial research, which creates human embryonic stem cells as
a research tool and, proponents hope, eventually as a treatment for chronic diseases such as diabetes, Alzheimer's and Parkinson's. Researchers and VCs scored a big win in California last November with the adoption of California's Proposition 71, protecting research there and providing a $3 billion state research fund. A good portion of the $24 million or more raised to support the measure came from VCs such as Brook Byers, John Doerr, Vinod Khosla and Joseph Lacob (all of Kleiner Perkins Caulfield & Byers of Menlo Park, Calif.), Gordon Gund and Amgen founder William Bowes of U.S. Ventures.
“Campaign chairman Robert Klein, a real estate investment banker, was the main political and financial force behind Prop 71. Klein, whose teenage son has juvenile diabetes, said through a spokeswoman that the VC contributors all had personal reasons for getting involved in Prop 71. The law creates a state board, chaired by Klein, that will dole out $3 billion in public funds mostly to research institutions, although startups will be allowed to apply for grants.
"'It was a role model for me,' (Massachusetts VC Chris) Gabrieli says. Prop 71 backers not only made their point about the research potentially saving lives, Gabrieli says, but also the campaign was "the first time effective arguments were made" in the stem-cell debate about economics, jobs and innovation.”
Monday, April 25, 2005
Will the New Stem Cell CEO Be a Surfer?
It tells us that if the top candidate likes opera, San Francisco could become the new headquarters for the stem cell agency. But if surfing and a truly wonderful climate are what matters, San Diego could get the nod. If it is professional basketball (Go Kings!) and skiing in the Sierra, Sacramento looks better.
We remarked on Jan. 27(“The CEO Reality”) that the most important factor in corporate location decisions is the desire of the CEO.
Walter Barnes, chief administrative officer of the stem cell agency, reinforced that in a letter to Julie Wright, president of the San Diego Regional Economic Development Corp. He was responding to some of Wright's concerns about the site selection process.
“At the most recent meeting of the ICOC on April 7, 2005,” Barnes wrote, “several members expressed the opinion that a decision on the headquarters site was a critical element of the recruitment for a permanent president. Your comment that the 'location of the job should not matter to the right candidate and that all postings should be viewed as interim' is disputed by Spencer Stuart – the presidential search firm hired by the ICOC. They have told the ICOC that a mid-May decision is needed. For example, a candidate with school-aged children will be able to relocate his or her family without inconvenience that might prevent him or her them from accepting an offer made at a later date.
“The Presidential Search Committee has adopted a plan of its own to make a decision on a recommendation at a meeting planned to be held on May 18, 2005. A decision on the headquarters site by May 6, 2005 will allow that Committee to ensure that uncertainty of location will not affect the finalist recommendations for the presidency of the CIRM.”
Perhaps the competing cities should plug themselves into the presidential search process for a little lobbying with the job candidates. However, some might think that would be unseemly.
On another recruitment note, some experts believe it is better to move children during the school year as opposed to summer. During the summer, displaced children have less to do – no school, etc. So they have more time to whine as they contemplate the loss of their old friends and environs.
As for the site selection subcommittee meeting, the finalist cities are seeking to have their scores changed. The recommendation to the committee was to alter the scores slightly, but that did not change the pre-meeting rankings that left San Francisco No. 1 and Sacramento No. 2.
Friday, April 22, 2005
Say Hello to Edelman
Red Gate Communications, which handled PR for Prop. 71 and some of the early months of the agency's existence, has resigned the account. Edelman, the world’s largest independent public relations firm with 1,800 employees, has been retained.
Also on board as a state employee is Nicole R. Pagano, senior communications specialist, and formerly with the Brookings Institution in Washington, D.C. She is listed at the top of the two-person contact list on the CIRM web site. Below her is Adam Silber, who is head of Edelman's Sacramento office.
In response to questions, Fiona Hutton, president of Red Communications in Studio City, CA., said in an email, “Red Gate Communications recently resigned its representation of the California stem cell agency. As you might imagine, we are very proud of the communications and outreach efforts we so successfully orchestrated during Prop 71 and during the first few, formative (albeit challenging) months of the Institute. It has been our pleasure to have worked closely with the Institute and so many passionate stakeholders throughout both these efforts. The firm continues its stem cell research expertise and advocacy in other regions throughout the nation.”
The change at CIRM came suddenly nearly two weeks ago, leading to a certain amount of speculation and rumor. The agency put out no advisory to the media about the change, merely altering the contact names on its web site.
Only on Thursday did the agency confirm that Edelman had been hired. That was after multiple queries by this blog to the agency and, on Wednesday, to the chief of staff nationally for Edelman
In an email, Pagano said, “CIRM has engaged Edelman to assist the Institute in fulfilling its public education and media relations duties, and was selected after a competitive search process.
“The mission of the Institute is to make grants and provide loans to advance stem cell research. Edelman will assist the Institute in its mission by making its progress as transparent and understandable as possible – both to the voters of California who have funded it and to the medical research communities who share its commitment.”
Pagano did not respond to questions concerning Edelman's compensation or whether it was required to file any economic disclosures in connection with possible conflicts of interest.
The contract is not insignificant. Red Gate's contract provided for as much as $70,000 for work from Jan. 18 to April 18, which was its entire term. While it is not yet known how much Red Gate was paid, the $70,000 figure is not unreasonable given the scope of the work, which went far beyond fielding phone calls from reporters. If Edelman is working under similar terms, a year contract could mean $250,000-$300,000 compensation. However, the agency now has on staff at least one fulltime person, Pagano, so that could affect Edelman's package.
Skilled public relations, information dissemination and public education are valuable assets for any organization. It is even more important for CIRM, which has virtually no track record and which is delving into areas new to medicine and public policy as well as to the public at large. However, PR is dependent on reality. To build a great reputation and keep faith with the people of California, CIRM must demonstrate accomplishment and accountability.
The Edelman Blog and Government PR
Recently he commented on the flap about federal government contracts for public relations. He said the PR business basically is “accused of foisting government propaganda on the American people, in direct violation of the law.”
To counter that sort of bad PR, he told his readers (others in the business) “let's start by revealing the size of our US government contracts.” Edelman also said, “The industry “ should commit to providing full disclosure on exactly what we do for Government contracts.”
“It is possible that this level of transparency will make it less attractive to the US Government to hire PR agencies. So be it,” Edelman blogged
Other advice for PR people “trying to adapt to a fast-changing environment.”
“We have to be operating in parallel universes, continuing to do a great job with traditional media, while engaging with new media,” Edelman wrote.
“We should help our clients create original content, and advise them to engender conversations on-line but be honest about our inability to control outcomes. We must be on top of the breaking news in companies, because news is being filled by the person who has the newest information. The coverage of tsunami initially came from survivors with cell phones or mini-cams, and delivered across the Web. Our tone in new media must reflect the different expectations of the audience, which is to demand authenticity, individuality and transparency.”
Thursday, April 21, 2005
Ho-Hum. Stem Cell Measures Approved
California legislative action on measures to tighten oversight of the state's stem agency attracted little interest in the media today.
Reporter Laura Kurtzman of the San Jose Mercury News appeared to be the only reporter who attended Thursday's meeting of the Senate Health Committee and wrote a story on the legislation, which was approved 10-0.
The Associated Press filed a story, but did not actually attend the session. Instead it relied on a statement from the office of the Sen. Deborah Ortiz, D-Sacramento, chair of the committee.
It is not uncommon for news outlets to write stories on such a basis when they deem the subjects not to be compelling. In this case, passage of the measure seemed assured since it was co-authored by Ortiz and the Republican vice-chair of the committee, George Runner of Antelope Valley.
Kurtzman fleshed out her story with additional reporting. She wrote,“The proposal would require the California Institute for Regenerative Medicine, which was created by Proposition 71, to abide by National Institutes of Health standards that were recently revised to bar employees from holding biotech or pharmaceutical stocks.”
“While refusing formally to take a position, representatives of the Institute for Regenerative Medicine said in interviews after the hearing that the rules were too restrictive. The head of the National Institutes of Health's human stem-cell program recently cited the (NIH) rules in announcing his retirement.”
Kurtzman quoted Ortiz as saying, “There is a higher level of accountability. This is a hybrid. This is a new model. In the end, it is the taxpayers who either benefit or lose in that equation.''
The AP story appeared on the web sites of the San Diego Union Tribune, San Francisco Chronicle and The Sacramento Bee, but not on the Los Angeles Times. Here is a link to the AP story and a link to the press releases on the two measures, which now move to the appropriations committee.
Wednesday, April 20, 2005
The Stem Cell Agency Just Says No
As a result the conference, sponsored by Political Pulse in Sacramento, was cancelled.
CIRM's withdrawal left some in Sacramento bemused, given the agency's pledge of openness. One insider said the action was “very unfortunate, and does not bode well for the ICOC creating an open dialogue with the public, much less maintaining public confidence in the institute.”
Political Pulse is an independent source of Capitol items and has been around for 20 years. It scheduled the teleconference for April 27, promising that it would explore issues and information about the agency and its startup progress.
Scheduled to be heard at the teleconference event were State Sen. Deborah Ortiz, D-Sacramento; Dr. David Gollaher, president of the California Healthcare Institute of La Jolla; Marcy Darnovsky, associate executive director of the Center for Genetics and Society in Oakland, and Dr. Phyllis Preciado of Fresno, a member of the Oversight Committee.
It was Darnovsky's presence that apparently triggered the withdrawal of Preciado. Darnovsky's organization has been a vociferous critic of the stem cell agency on issues ranging from the stem cell medical questions to conflicts of interest.
Political Pulse did not respond to questions about the cancellation nor did CIRM, including whether this was a onetime action or reflected an agency policy.
Coming Up
Tuesday, April 19, 2005
Looking for Analysis in the Right Places
The best bet is the legislative staff analysis which can be found on the Web(here and here). It states what the law is, what is being changed and summarizes some of the issues. It doesn't, however, deal with Robert Klein's contention that the legislation is thwarting the will of the people, a dangerous political argument that goes beyond the purview of staff analysis.
The analysis of that dubious assertion can be found in a couple of items on this blog: “The Fallacy of the Will of the People” (3-23) and “Will California Vote Again on Stem Cell Research” (4-15).
Ortiz Drops Superovulation Moratorium
Instead Sen. Deborah Ortiz, D-Sacramento, is going to ask the agency to fund a study of the impact of hyperovulation on women's bodies, said Hallye Jordan, director of communications for the lawmaker, who is chair of the Senate Health Committee.
Ortiz has teamed with a conservative Republican, Sen. George Runner of Antelope Valley, to co-author measures, including a proposed constitutional amendment, to require the State Auditor to audit Prop. 71 expenditures. The legislation would also require written informed consent procedures and limits on compensation for women who wish to donate eggs for medical research, among other things.
The legislation will be considered by the Senate Health Committee in Sacramento Wednesday afternoon. For more on this, see the item on this blog April 15, “Will California Vote Again on Stem Cell Research?”
Monday, April 18, 2005
Stem Cell Snippets: Dudes to Brownback
“Dude, you obviously don't know Emeryville!” -- Inclusion of the little city of 10,000 among the finalists for the permanent stem cell agency HQ left some folks in Los Angeles mystified. Columnist Chip Johnson of the San Francisco Chronicle explained why, at least in his view. Among the reasons is a certain vision. “In the early 1980s, when few people had ever heard the term biotechnology,” Johnson wrote, “Emeryville gave the thumbs up to three UC Berkeley professors who wanted to open a lab in Emeryville. Those men, William Rutter, Edward Penhoet and Pablo Valenzuela, are the founders of Chiron Corp., one of the largest biotech firms in the world.” Penhoet is now vice chairman of the stem cell agency.
Now Hiring – Just posted on the stem cell agency's Web site are new hiring plans. Over the next six to nine months, it will bring on as many as 15 full time scientists who will be responsible for reviewing and managing its scientific programs. The agency is looking for a strong background in basic or clinical biomedical research, including a Ph.D. and/or an M.D., post-doctoral experience as well as relevant experience. More information is available here, but it doesn't tell job seekers they might have to live in Sacramento to afford housing and commute to the pricey Bay Area.
Brownback's Ban – Local Liberty, the blog of the Center for Local Government at the Claremont Institute, notes how doings in Washington, D.C., could affect this state. “More threatening” than lawsuits against CIRM in California “is United States Senator Sam Brownback's bill to ban all human cloning, even if the cloned embryo is prevented from growing in a womb, as California law requires. The CIRM plans to spend lots of its $3 billion to research human cloning in this manner.”
All Laid Out – The stem cell agency has posted its approved conflict of interest policies on its web site. The Sacramento Bee commented critically on the standards for working group members. “Unfortunately, institute leaders have proposed a deeply flawed policy, one that doesn't pass the good-government smell test....Institute staff will instruct the reviewers to recuse themselves from considering any grant decisions with which they have a conflict. No disclosure forms will be required. As a result, the institute's staff will have no ready mechanism for ensuring that reviewers are acting ethically. Nor will the public.”
Friday, April 15, 2005
Will California Vote Again on Stem Cell Research?
Sen. Deborah Ortiz, chair of the Senate Health Committee, has authored both a bill and a proposed constitutional amendment that will come before her committee in Sacramento. Co-authoring the proposals by the Sacramento Democrat is conservative Republican Sen. George Runner of Antelope Valley, vice chair of the committee.
Ortiz supported Prop. 71. Runner opposed it. She proposed her measures “to maintain the public’s confidence, the integrity of this important research and California’s significant financial investment.”
“We must make sure meetings are open to public scrutiny, strict conflict-of-interest and economic disclosure standards are developed, patients’ rights are protected and the state receives a fair financial return on its generous investment,” she said.
Runner said, “The voters of California did not vote for Proposition 71 so that biomedical companies get a windfall of billions of tax dollars with little or no accountability. It’s critical that we establish the highest ethical conflict of interest standards, true operating transparency, and a direct benefit to Californians from their $6 billion investment.”
Ortiz introduced an early version of the legislation last December. It was toughened up following an informational hearing in March. Robert Klein, the chairman of the stem cell agency and the prime mover on the ballot measure, refused to appear before the hearing of both the Assembly and Senate Health committees, despite the fact that he is a state employee, albeit one who is independently wealthy.
While promising publicly to cooperate with the committees, he lobbied behind-the-scenes to have the hearing put off. His efforts also came at the same time that his allied nonprofit organization, Cures for California, sent out emails across the country to generate pressure on the legislature. The messages solicited recipients (presumably disease sufferers) to send emails to the Legislature or call seeking postponement of the legislative hearing because of the possibility it would generate bad press.
Legislators later privately called Klein his “own worst enemy” and described him as a “meglomaniac and liar(see Roiling Undercurrents 3/16 on this blog).”
The Health Committee seems certain to approve the bill and constitutional amendment, but that is only the first step on their legislative journey. Should the constitutional amendment win approval of the legislature, it must appear on a statewide ballot. If it does, it is likely to become a referendum on all that the agency has done – not just the contents of the measure.
Such a ballot fight would give stem cell opponents a huge, fresh target, one that is likely to bring in major national anti-research campaigns from the Christian right, among other players. That would be a serious distraction for the agency, to put it mildly.
The task facing Klein is to scuttle early on at least the constitutional amendment. If he fails, it will gain momentum and become increasingly difficult to kill.
Here are links to the bill and the constitutional amendment. Earlier blogs on the legislation and related matters included: Robert Klein: The Missing Man (3/15), “Roiling Undercurrents (3/16), Litany of Losses (3/17).
---------------
We welcome and will publish comments on CIRM or the failings of this blog. Please send your comments to djensen@californiastemcellreport.blogspot.com.