Stanford's Weissman Flays Proposed NIH hESC Regs

The NIH's proposed hESC regulations were hardly off the presses today before they came under fire from an eminent stem cell researcher for flying in the face of President Obama's March proclamation on stem cell research.

Irv Weissman(pictured), director of stem cell research at Stanford, took on the NIH in a news release from the Stanfod School of Medicine.

Weissman said,

"Instead of facts, the NIH placed its own version of ethics in place of the president’s clear proclamation. As head of the National Academy of Sciences' panel that unanimously endorsed research using SCNT, and as a drafter of the guidelines for the International Society for Stem Cell Research, I know that this suggested ban on federal funding of SCNT-derived human embryonic stem cell lines is against our policies and against President Obama’s March 9 comments. The NIH has not served its president well."

The news release continued,

"'I am happy that these are draft guidelines,” said Weissman, who noted that the NIH did not solicit input from either the National Academy of Sciences or the International Society for Stem Cell Research during the consensus process. 'I’d like to remind the NIH of the principles enunciated by the president on March 9. Research in this area is moving very fast, and it’s not possible to say whether advances will come from work on adult-derived iPS cells or from embryonic stem cells created by nuclear transfer. Policy needs to be developed as the field develops, rather than precluding something based on ideology.'"

Across San Francisco Bay in Oakland, the Center for Genetics and Society praised the regulations,

Its news release said,

"Cloning-based stem cell research lays the technical foundation for human reproductive cloning - which the U.S., unlike dozens of other countries, has not yet prohibited - and requires enormous numbers of human eggs, whose extraction poses health risks to women. Despite years of work, no researcher has created a clonal human embryo viable enough to yield stem cells," said Jesse Reynolds, policy analyst at the Center. "In contrast, alternative methods of cellular reprogramming have largely achieved the goals of cloning-based work. The NIH was wise in leaving such risky work outside the domain of federal funding."

The group did not address CIRM's position on the proposed rules, but it has been an advocate of strong national standards.

CIRM Able to Fund Research Excluded by Proposed NIH Regulations

The California stem cell agency today said that the proposed NIH regulations for human embryonic stem cell research are "largely consistent" with the state regulations, although CIRM will be able to fund projects that would be barred from federal funds.

The agency issued a news release on the matter this afternoon. It said,

"The conditions required by the NIH are largely consistent with requirements CIRM has developed for derivation performed by our grantees, according to Geoff Lomax, senior officer for medical and ethical standards. 'For our grantees working with lines derived under CIRM standards, these regulations open the door to broader sources of funding, expanding important research in California,' Lomax said.

"Lomax said that under both sets of guidelines, researchers hoping to use a particular stem cell line must prove that the couple who donated the embryo knew that they would not personally benefit from the work, that they would not benefit from possible commercial applications of the cells, and that they could not place restrictions on the type of research performed with the cell line, among other conditions. He added that CIRM may need to make a minor revision to its regulations requiring that couples be specifically informed of all options for disposing of their excess embryos before donating to research.

"Lomax added that there are important avenues of research funded by CIRM that are prohibited under the draft regulations. These include the creation of new stem cell lines, and any work with lines created through nuclear transfer (sometimes called therapeutic cloning) or parthenogenesis, in which the egg is stimulated to begin division without fertilization.

"'CIRM remains a critical source of funding in California for work that is not eligible for funding by the NIH but that has important scientific value,' Lomax said. For example, embryonic stem cell lines created through parthenogenesis are genetically identical to the donor and could be an important source of stem cells for therapies."

UC Sounds Cautionary Note on Stem Cell Therapy Amid 'Guarded Optimism'

Rays of economic hope were scattered through two stem cell/biotech conferences this week in the San Francisco Bay Area – one focusing on industry and one more oriented towards academe.

The BayBio industry group sponsored one meeting in South San Francisco that attracted 700 participants, according to David Morill's account on InsideBayArea.com, a Web site for six daily newspapers in that area.

While acknowledging the difficult economic times, Morrill quoted Matt Gardner, president of BayBio, as saying,

"We've had a couple of companies shut down, but overall there is definitely a guarded optimism here. There is a lot of focus this year on partnering and venture marketing."

No one from the mainstream media wrote about the other affair so the University of California presented its version online in an article by an unnamed author.

UC reported that 320 researchers, biotech execs and money folks attended the April 15 meeting hosted by the UC Office of Technology Transfer and the British and Canadian consulates. One speaker, Gregory Bonfiglio of Proteus Venture Partners, said the commercial market in regenerative medicine will grow to $118 billion next year compared to $3.6 billion last year.

UC took pride in pointing out that it has snagged $420 million out of the $694 million that CIRM has handed out in research and construction grants. The university did not mention that 11 of the 29 members of the CIRM board of directors, which sets both the rules for grants and awards them, have links to the University of California.

UC also fired a shot in the debate about CIRM's push into clinical trials vs. basic research. And given that the article came from the Office of the President, it carries some considerable weight. Here is what it said,

"The biggest contribution UC is making to this new stem cell economy is in advancing basic research and training, said Steven Beckwith, vice president of research and graduate studies in the UC office of the President, who delivered one of the keynote speeches at the forum.

"'There are now avenues where stem cells can be used for therapeutic remedies, but they're limited,' Beckwith said. The real potential won't be realized until we understand the fundamental mechanisms behind these cells. That's the strength of university research.'"

San Diego's Stem Cell Consortium Still Hunting For Cash

San Diego's Sanford stem cell consortium is buoyed by the latest assurances that it will receive $43 million from CIRM to assist with its new research lab, but it still needs to borrow as much as $65 million more, the San Diego Union-Tribune reported today.

Reporter Terri Somers wrote:

"For months, the state could not sell bonds to support voter-approved projects such as the stem cell institute because it did not have an approved budget. And some lenders questioned whether the fiscally challenged state could make good on its promise to provide the consortium's funding. The escrow account should address those fears, said Louis Coffman, the consortium's vice president.

"UCSD Chancellor Marye Anne Fox also welcomed the news.

“We are happy to learn that we are now one step closer to building an important new stem cell research facility for the Sanford Consortium for Regenerative Medicine, which will enable researchers from the University of California San Diego, the Salk Institute, the Burnham Institute and The Scripps Research Institute to more effectively collaborate to find cures for some of the world's most devastating diseases,' Fox said."

Somers also wrote,

"'Now we can go to the market and say there is no risk associated with the California money,' Coffman said.

"To raise the rest of its financing, the consortium has selected Barclay's Capital as its investment banker to underwrite a bond offering, Coffman said.

"The underwriter typically agrees to buy a certain amount of bonds, and then sell them to investors on behalf of the consortium.

"The consortium has also applied for funding from the federal stimulus package, which would be administered through a grant from the National Institutes of Health, Coffman said. Any stimulus money received would reduce the amount of funding the consortium would have to raise through the bond financing, he said."

Somers reported that ground has not been broken on the project, which raises questions about whether the consortium can meet the CIRM completion deadline. The labs were to have been finished within two years, according to a CIRM news release May 7, 2008.

Stem Cells and Cyberspace Info

Jim Till, a member of the board of the Cancer Stem Cell Consortium in Canada, runs a blog called the Cancer Stem Cell News.

Most of it appears oriented towards nitty-gritty research, but occasionally he picks up other types of information. Today he linked to the San Francisco Weekly piece on CIRM with an acknowledgement that he found it via the California Stem Cell Report.

Till carried a paragraph from the Weekly's story but otherwise offered no comment.

Till's blog is a good example of how news and information originally targeted for a geographically small audience can rocket around the world, courtesy of the Internet. With the waning power of the print media and its TV and radio cousins, the Web is increasingly likely to be a key information source on relatively specialized topics such as stem cell research – more so than general news.

The conduct of stem cell research would not have been high profile news even during the golden days of newspapers. Less so now and in the years to come.

New Stem Cell Patent Ruckus in California

The delicate interface between science and business has come a cropper again.

The latest set-to involves the National Human Neural Stem Cell Resource of Children's Hospital of Orange County Research Institute and Stem Cells Inc. of Palo Alto, Ca.

John M. Simpson, stem cell project director of Consumer Watchdog of Santa Monica, Ca., Wednesday provided a summary of the dispute. He reported that Philip Schwartz, head of the Resource, said his organization's efforts to promote research with human neural stem cells has been effectively blocked by patents held by Stem Cells Inc.

The entire story can be read on Simpson's organization's blog along with a response from Stem Cells, which said it did not control actions by the Resource.

The situation reminds us of a book, "Science Business," by Harvard business professor Gary Pisano, published a couple of years ago. He has studied and consulted with the biotech industry for decades and has written about its consistent lack of profits. He suggests that part of the problem lies in the "monetization of IP" and inappropriate application of high tech industry IP principles in the biotech industry.

In 2006, he said in an interview on the Harvard Business School web site:

"Science and business work differently. They have different cultures, values, and norms. For instance, science holds methods sacred; business cherishes results. Science should be about openness; business is about secrecy. Science demands validity; business requires utility. So, the tensions are deep.

"What has happened is that we have tried to mash these two worlds together in biotech and may not be doing either very well. Science could be suffering and business certainly is suffering. If you try to take something that is science, and then jam it into normal business institutions, it just doesn't work that well for either science or business."

Stem Cells Inc. was founded by scientists Irv Weissman of Stanford, Fred Gage of the Salk Institute and David Anderson of Caltech.

Simpson wrote,

"You would have thought that with academic heavyweights like these involved with the company it would have been a no-brainer to figure out a way for Schwartz to distribute cells he has derived from CHOC patients to qualified researchers.

"The root of the problem is the Bayh-Dole act governing federally funded research. It has turned our universities into commercial entities where scientists rush to patent their discoveries rather than rush to publish and explain them."

We are querying Weissman, Gage and Anderson about their thoughts on the general issues raised by Schwartz along with the specifics.

Simpson's piece was the result of a notice by Schwartz to about 2,700 persons, mostly academics, about the patent issue. Simpson sent out a note to about 75 journalists nationwide about his item.

Stem Cells and Three California Movers and Shakers

The Capitol Weekly newspaper in Sacramento today identified three men with close ties to California stem cell issues as among the top 50 political players in the state.

The list included Eli Broad, Richard Blum and the man behind CIRM's Sacramento lobbying firm. The rankings did not include elected officials, such as the governor, who is a good friend of the California stem cell agency.

Ranked No. 5 was Broad, the Los Angeles billionaire businessman who has funded stem cell research at UCLA, USC and UC San Francisco with tens of millions of dollars. In the 2007-08 election cycle, he spent nearly $1 million on political efforts. "If money talks, then everybody listens to Eli...," the newspaper reported.

Ranked No. 6 was Steve Merksamer of the firm of Nielsen, Merksamer, Parrinello, Mueller & Naylor, which is the Sacramento lobbyist for CIRM. Merksamer was one of its founding partners. The firm has been on retainer with CIRM since the agency's earliest days and currently has a $49,200-a-year contract with the agency for its services, which CIRM coyly describes as "public education." Capitol Weekly said Merksamer is "is one of the state’s most influential political-legal players. His 16-lawyer firm is involved in a myriad of political issues and dispenses legal advice and political strategy to a national and international big-business clientele."

Ranked No. 14 was Blum, chairman and president, Blum Capital, a major equity investment management firm. Blum is a University of California regent as is Sherry Lansing, a member of the board of directors of CIRM. Blum is also the husband of Democratic U.S. Sen. Dianne Feinstein. Blum Capital Partners purchased $1 million in bond anticipation notes to help fund CIRM in 2006.

The list of 50 is the first installment in a Top 100 count, with more "influence peddlers, power brokers and political players" to come next week.

The California Stem Cell Story: Safety, Waste and Promises

The story was about CIRM, and the headline said,

"Stem-cell stalemate: The push for cures may produce only disappointment - or worse."

Written by Peter Jamison for the San Francisco Weekly, the lengthy and thorough-going article explored the promise of California's $3 billion stem cell research effort and how it measures up. Jamison focused on CIRM's move towards pushing therapies into the clinic and away from basic stem cell research.

The article appeared in a free newspaper that reports 100,000 weekly circulation with 500,000 monthly readers and 1.5 million page views (presumably weekly) on its Web site.

Jamison said that when Prop. 71 was passed in 2004, it was fueled "by promises of cures and therapies that appeared, to the layperson, little short of miracles." He wrote,

"Many in the medical community, while paying lip service to the optimism of 2004, acknowledge the very real possibility that people suffering from the incurable conditions typically associated with stem cells — not just Parkinson's or diabetes but Huntington's disease, multiple sclerosis, and HIV/AIDS, among others — will not see a therapy or cure from the state's $3 billion investment."

Jamison continued,

"In short, the question is whether CIRM should become an agency that pays tens of millions of dollars to alleviate arthritis while research languishes on Huntington's disease or multiple sclerosis. This approach could go a long way toward addressing the more serious safety concerns voiced by some scientists. It is also a remarkable detour, by any standard, from the ambitious medical goals that drove Prop. 71. It is difficult to overlook the irony of a situation in which state officials, seeking to deliver on the promises of a ballot initiative intended to overcome the Bush administration's supposed limits on the advance of science, turn for their salvation to research Bush never restricted in the first place. Will California voters accept such a momentous policy shift?"

Jamison interviewed a wide range of scientists including those at CIRM. He quoted Arnold Kriegstein, director of the Eli and Edythe Broad Center of Regeneration Medicine and Stem Cell Research at UC San Francisco, on the risks of CIRM's turn towards the clinic.

"The likelihood of something going wrong is pretty high. Something like tumors are probably going to happen. This is an area where the risks are great. The public has to be prepared."

Marie Csete, chief scientific officer at CIRM, took another view. Jamison wrote that "she was quick to counter suggestions that the agency's new funding priorities would put patients in danger."

Csete said,

"'It's just a ridiculous idea that we're not putting safety first....This field is moving very quickly toward clinical application. There's no question in my mind, and it would be silly for us to say that we have to solve every single problem before we proceed to transplantation' of cells into humans."

Hans Keirstad of UC Irvine was quoted as saying,

"'You will always garner respect by saying, 'Slow down. More science is necessary....Somewhere out there there's got to be compassion for those patients who are dying. I would go so far as to say that inaction is killing people. The views of ultraconservative scientists are killing people.'"

Waste was another topic. Jamison quoted Bruce Conklin, a senior researcher in the Gladstone Institute's cardiovascular disease division, as saying,

"'We all want the same thing — we want to see regenerative medicine work....Although there's $2 billion [of CIRM money] left to give out, that's actually a very small amount of money. Now, if that's all spent on clinical trials that don't tell us anything because they don't work, that's a missed opportunity.'"

Warner Greene, director of the Gladstone Institute of Virology and Immunology, said,

"There's no way to hop over this basic biology."

Jamison additionally interviewed Jeff Sheehy, one of the 29 persons on the CIRM board of directors, who talked about an "identity issue" at CIRM. Jamison wrote,

"'If we are going to say that we're going to work with adult stem cells, we can be in the translational phase and the clinic now,' says Sheehy, who is communications director for UCSF's AIDS Research Institute and represents the interests of HIV patients to the board. 'While they're going to be of benefit to a great many people in California, these adult-stem-cell approaches are probably not going to have a big impact on these severe degenerative diseases that really motivated a great number of people to support Prop. 71, like Alzheimer's, Parkinson's, spinal-cord injuries.'"

Many of the issues addressed by Jamison are part of the current review of the CIRM strategic plan. The agency last month conducted two public hearings on plan and its proposed changes. You can find the transcripts here under the topic "interested persons meetings." The latest version of the plan may well surface at the CIRM directors meeting April 28-29 in Los Angeles.

But for many, Jamison wrote, CIRM's activities are more than a debate about strategy and basic research vs. translational research. He said,

"Whatever the voters who supported Prop. 71 think of the use of their money to support adult stem-cell cures for relatively pedestrian ailments, they would almost surely be angered if the ballot initiative's billions of dollars have bought, after a decade, only a sheaf of much-lauded studies in the journal Cell.

"Even angrier, no doubt, would be the people who suffer from the diseases stem cells might one day cure. Their voices, more than any others, persuaded a majority of the state electorate to support Prop. 71."

We asked Don Gibbons, chief communications officer for CIRM, if the agency had a comment on the article for this item. He replied,

"I just hope you encourage your readers to read the entire article and not just the negative snippets you choose to use."

We certainly hope that you all take a look at Jamison's piece, which airs, in a very public way, some important scientific and policy questions that have not yet been widely examined in California.

Your comments are invited on this and any other topics. Click on the word "comments" below to send them in unmoderated. Anonymous comments are permitted.

(Editor's note: An earlier version of this item incorrectly attributed the "hop-over" quotation to Bruce Conklin, not Warner Greene.)

Money for CIRM, But It Still Needs More

The California stem cell agency today received some good financial news from the folks at an obscure state entity called the Pooled Money Investment Board.

The board, which operates out of the state treasurer's office, renewed a $295 million loan to CIRM and approved $43 million in additional funds from the board, according to Tom Dresslar, spokesman for Treasurer Bill Lockyer.

One unconfirmed report had it that the $43 million was destined for stem cell lab construction in the San Diego area involving the Sanford consortium (UC San Diego, Salk, Scripps and Burnham).

We queried CIRM on the matter, and spokesman Don Gibbons said the money would improve the agency's cash flow. Later Gibbons explicitly said the money would go to the Sanford project.

If the board had not renewed the loan, it would have weakened CIRM financially. But CIRM remains in dire straits unless it gets significant help from the upcoming state taxable bond sale.

The Pooled Money board manages state cash flow and provides interim financing for state and local projects while they await bond proceeds.

(An earlier version of this item said that Gibbons would not confirm that the money would go to San Diego. Later in the day, he said it would.)

Hearing on Stem Cell Education Measure Coming Up

Legislation designed to make stem cell education a part of California's state public school curriculum will be considered on April 29 by the state Senate Education Committee.

The measure, SB 471, cites the California stem cell agency and its research efforts as the impetus for for the proposal.

The bill by Sen. Gloria Romero, D-East Los Angeles, and Senate President Pro Tem Darrell Steinberg, D-Sacramento, says that the state Board of Education as well as the community colleges, the state college system and the University of California "should collaborate to help CIRM advance its education initiatives." The Board of Education controls matters in grades kindergarten through 12. Romero (pictured) heads the Senate Education Committee.

Her bill was discussed at a meeting of the CIRM directors' Legislative Subcommittee on March 31.

No transcript of the meeting is yet available, but a spokesman for CIRM, Don Gibbons, said recently that no position was taken on the bill, along with another measure aimed at ensuring affordable access to any therapies developed with CIRM-funded research.

Gibbons said,

"They just felt the bills were not sufficiently fleshed out to have a formal position taken."

The affordable access bill, SB 343 by Sen. Elaine Alquist, D-San Jose, is a somewhat altered version of a measure opposed by CIRM last year and vetoed by the governor. The bill is now before the Senate Health Committee but no hearing date has been scheduled. Alquist is chair of the Health Committee.

As to whether the full CIRM board will consider the legislation at its meeting April 28-29, Gibbons said,

"Who knows if the full board will take it up at the end of the month. "

CIRM Not Obsessing Over Bond Sales

The California stem cell agency apparently intends to proceed with plans to privately market state bonds, despite an expected influx of cash from a much larger sale later this month, according to a blog of Nature magazine.

Writing on The Niche, Monya Baker reported last week that CIRM is "moving ahead with plans" to sell bonds privately. She sourced her information to Don Gibbons, chief communications officer for CIRM.

Meanwhile Time magazine today carried a piece that is not going to make it any easier for CIRM or the state of California to market bonds.

The headline said, "Rising Risks in Muni Bonds Worry Investors." (Muni bonds refer to both state and local government bonds.)

The article said,

"A growing number of analysts and financial planners are raising doubts about the bonds of local and state governments."

But Baker reported that Gibbons said CIRM is not "obsessing over the bond sales." She quoted Gibbons as saying,

“The feeling here is that the money will come through for us when we need it. That someone will find a way.”

Dodging the Salary Bullet

Most of the time we write about things that affect CIRM. Here is one thing that won't – legislation to freeze salaries of high paid state employees.

The measure, AB 53, would impose a two-year ban on raises of about 785 state employees who make more than $150,000 annually. It is now before Assembly Appropriations Committee after winning unanimous approval from the Assembly Public Employees Committee on April 1.

The logic behind the bill by Anthony Portantino, D-La Canada, is that well-paid state employees should share the pain of budget cuts affecting children, seniors and so forth. The California stem cell agency has a bunch of folks who make more than $150,000 – too many in the eyes of some critics.

However, California lawmakers are politically unable to touch the agency because of Prop. 71, which requires an unprecedented 70 percent, super-majority vote of both houses and the signature of the governor to change state law affecting CIRM.

The significance of the legislation concerning CIRM is that high salaries are a red flag issue for the public even though they may be justified. Check out some of the comments on the story in The Sacramento Bee on the measure.

CIRM To Censor Confrontational Comments on its Facebook Site

Call it stem cell cyberspace – California style.

The $3 billion California stem cell agenda has embarked on a major foray into the Internet's social networking scene. It now has a fairly hefty presence on Facebook, YouTube and Flickr – all part of the expansion of its communications and public relations operations.

CIRM's Internet doppelgangers represent a creative attempt to use the latest tools to reach a wide audience, including those who might not necessarily tune into the old-fashioned print media.

But the Facebook account raises a significant public policy issue: Should taxpayer funds be used for a Web page that explicitly warns that a state agency (CIRM) will censor comments that it does not like?

Here is what the stem cell agency says on Facebook:

"CIRM's Facebook page is a place to learn more about stem cell research in California and around the world. We encourage comments on the science in our posts and our blog entries and will post regular responses from CIRM's in-house scientists or from our grantees. We will remove posts that are confrontational in nature."(Our boldface)

We asked Don Gibbons, the agency's chief communications officer and the man responsible for the cyberspace outreach, four questions about CIRM's policy on "confrontational" posts.

"How does CIRM define confrontational?

"Is it appropriate for public state agency to restrict commentary on taxpayer-funded scientific and policy matters?

"Is such a ban in keeping with the best standards for discussion of scientific matters?

"Do you know of any other state agency with such a policy?"

Gibbons replied,

"Our policy is essentially the same as yours. The goal of the site is to foster free and open discussion of the science. We will be very conservative in deciding to remove posts, reserving that action for anything that unfairly questions the integrity of our funded researchers or of stem cell science in general. Compare it to you taking down the recent posting about President Obama on your site."

Aside from the fact that the California Stem Cell Report is not funded by taxpayers or any business or organization, CIRM misses the point.

By warning its Facebook readers that their comments could be expunged, CIRM stifles legitimate commentary about CIRM's operations. It is as if the state began publishing a newspaper and warned the public that it would not print letters from readers or op-ed pieces that it deemed confrontational or unfair.

Beyond that, science -- not to mention government -- requires a robust dialog. One researcher's questions may be considered confrontational or unfair by another whose work is being scrutinized. Does that mean that the concerns should not be voiced in a public way? (See this link for an interesting related lawsuit.)

Yes, the Internet is a wild place. People say many rash things in cyberspace, and there is a problem with commentary that can be obscene and racist as was the case in the Obama comment that we deleted from the California Stem Cell Report. But obscenity and racism are a far cry from comments that are confrontational or unfair.

How will CIRM handle a comment from a person who deeply believes that hESC research involves the destruction of human life, says something to that effect on the Facebook page and suggests that hESC scientists are baby-killers? How will it deal with a comment that says the CIRM board of directors is riddled with conflicts of interest and the agency should be abolished.? Would the agency allow remarks from the scathing column about CIRM that recently appeared in the Los Angeles Times? Would the agency allow comments from stem cell scientists that suggest it is going badly awry in an endeavor to cozy up to the biotech industry?

All of those comments could be considered unfair or confrontational.

The problem here is not with the Facebook page. It is with the fact that CIRM is allowing comments to be posted on the page and supposedly encouraging them, but only if they are "correct" in the eyes of some at CIRM.

Web sites have been wrestling with the problem of untrammeled commentary since the 1990s. A variety of controls have emerged on private sites. But private Web sites are a wholly different animal than a Web site funded by taxpayers.

CIRM should encourage the broadest of commentary on its Facebook page and as well on its main home page. From time to time, it may well have to delete a comment that is obscene, racist or libelous.

But it should narrowly define what it would remove. Comments that are confrontational or unfair should not be censored. And comments that question "the integrity of ... stem cell science in general" certainly should be allowed. CIRM can and should rebut comments. That is the value of open dialog, which is paramount to a successful democracy.

We welcome comments on this and all other topics, confrontational or otherwise. You can make them by clicking on the word "comments" below. Anonymous comments are permitted.

(Editor's note: Gibbons' response also made reference to an item that we deleted last month along with a related comment from him. We posted notes explaining the deletions. You can find them here. For more on the CIRM's cyberspace efforts, see the item below.)

CIRM Facebook Likely a Pioneer Effort Among State Agencies

The California stem cell agency's use of Facebook, YouTube and Flickr seems to be relatively novel among state departments.

Our web searches did not turn up any other California state agencies with Facebook pages, but given the nature of Internet searches some may, in fact, actually exist. Some state college campuses (Stanislaus, Chico and others) have Facebook pages as does UC Berkeley. Most of the ones we looked at show light activity.

CIRM's effort is not the only Facebook page called the "California Institute for Regenerative Medicine." Another, created by Judy Roberson, can be found here, but it appears largely moribund. Another CIRM-related site was started by attendees at a CIRM meeting in 2008 in San Francisco.

The CIRM Facebook page does not yet appear to have generated major traffic. Only 55 "fans" are registered, as of this writing. It has been up since at least late February although it was just announced this week. CIRM's YouTube site reports 23 subscribers with 1,705 "channel views" since its inception Jan. 15. (The state has a number of YouTube pages including a state YouTube Channel, which has had only 33,848 channel views since March of 2008.) We could not find viewing numbers on Flickr site.

Low usage is normal for early-stage web sites. Driving traffic to a web site is a continuing challenge unless you have a brand name such as the New York Times or President Obama.

CIRM's Facebook page compares favorably in terms of usage to the U.S. government's Facebook page, which has only 489 fans but obviously a much larger user base.

The content on CIRM's Facebook and the other pages consists primarily of material that can found already on the main CIRM web site. Some links are provided to news stories about CIRM, although none of the stories contained significant critical remarks. The Facebook page does promise both blogs from CIRM staffers and interactivity, with CIRM personnel responding to questions.

CIRM's cyberspace efforts seem relatively low cost. But, web pages must be freshened regularly with new content and nurtured with marketing drives to push traffic. Otherwise they whither. In a year or so, CIRM should examine the reader numbers from the sites to determine whether its tiny staff can justify continuing these fledgling endeavors.

CIRM Says Cash Will Come From This Month's Bond Sale

The California stem cell agency confirmed this afternoon that it expects to receive cash from the proceeds of a $3 billion to $4 billion taxable state bond sale later this month.

In response to an inquiry from the California Stem Cell Report, Don Gibbons, a spokesman for CIRM, said,

"We have been told we could receive some level of new direct funding through the bonds that are scheduled to be issued beginning April 20."

Gibbons did not specify an amount or a range or whether it would be enough to scrub plans for a private state bond sale effort by CIRM.

However, we believe that it is quite likely that the amount will be sufficient to fund CIRM at least through this year or until the state's bond mavens believe that another taxable bond issue can be offered.

CIRM Bond Effort Still a Possibility

The private sale of bonds by the California stem cell agency could remain an option, according to the California state treasurer's office.

Tom Dresslar, spokesman for Treasurer Bill Lockyer, made the comment today in response to questions from the California Stem Cell Report.

CIRM has not responded to our inquiries concerning the reports that proceeds from a $3 billion to $4 billion taxable bond sale this month sale would help out CIRM. John M. Simpson, stem cell project director for Consumer Watchdog of Santa Monica, Ca., predicted that the CIRM would snag about $400 million. (See his comment on the "cash infusion" item.)

We asked Dresslar for his comments on the bond sales reports. In his initial response, he said,

"We will sell taxable bonds. Proceeds can be used on taxable bond-funded projects, including stem cell. We hope to pay the PMIA for the outstanding 250 million loan to CIRM.

Then we asked him,

"Will funds be available for grants and operations beyond the repayment of that loan? If the funds are used in that fashion, will it enable CIRM to take out a new loan? In other words, does CIRM need to continue its plans to privately market bonds? Are the items I have been writing concerning the LA Times and Bond Buyer stories off base?"

Dresslar replied,

"It will be up to the Department of Finance to allocate funds from bond sale. But about 1 billion of the proceeds will be used to replenish PMIA for outstanding loans, including CIRM. There will be no new loans, at least for the time being. So I would think private placement remains an option."

Cash Infusion for CIRM Confirmed

Another report surfaced this morning, confirming that the California stem cell agency will be among the beneficiaries of the sale later this month of $3 billion to $4 billion in taxable state bonds.

Rich Saskal of The Bond Buyer wrote that the state of California plans to use a portion of the proceeds "to provide forward funding for taxable bond programs, such as affordable housing and stem cell research."

The news came as a bit of a surprise to some members of CIRM's board of directors that we queried. The agency itself and the treasurer's office have not yet responded to our inquiries, which is not unexpected since they went out overnight.

The stories in Bond Buyer and the Los Angeles Times did not specify how much cash is likely to be forthcoming for CIRM, which would have run out of money next fall without additional funding. Bonds are virtually the only source of cash for CIRM's operations and grants.

Cash Crunch Coming to an End at CIRM?

No official word is out yet, but the financial woes of the California stem cell agency are likely all but over.

According to a report late today by Tom Petruno on the Los Angeles Times website, within the next two weeks state Treasurer Bill Lockyer will try to raise up to $4 billion in a taxable bond sale that would bail out CIRM.

Petruno wrote,

"Part of the offering will be used to finance projects that don’t qualify for tax-free funding -- such as the stem-cell research measure that California voters approved in 2004."

The California stem cell agency is dependent on California bonds for its grants and operations. But bond sales dried up last year. And CIRM will run out of cash by next fall unless it receives more funding from bonds.

Petruno explained that the proposed $4 billion bond sale is unusual. He wrote,

"(State Treasurer Bill) Lockyer will use taxable bonds instead because the U.S. Treasury will pick up part of the interest cost of the securities.

"Under the Build America Bond program, states and other municipal issuers can choose to sell taxable bonds for public-works projects and have the federal government pick up 35% of the annual interest expense on the securities."

If bond funds are coming to CIRM, that could mean that it will give up its plan to market taxable state bonds privately, which would be an unusual and difficult chore.

No announcements have been made by CIRM or the treasurer, but Petruno sourced his story to a spokesman for the state treasurer's office, Tom Dresslar. We are querying the agencies concerning the Times report.

Patient Advocate Reviews CIRM

Perspectives on California's stem cell effort can vary widely. Here is a view from patient advocate Don Reed, who is regular attendee at CIRM meetings and an officer in the private stem cell lobbying group created by CIRM Chairman Robert Klein.

Some excerpts from a recent entry on his blog, stemcellbattles.com, entitled "A Year in the Life of the California Stem Cell Program:

"In the midst of all the economic gloom and doom, something shining has emerged in California: the beginning of a vastly better world."

"Look at the path that CIRM has laid down for cure: educating and supporting scientists, helping train their support staff, setting up loans for the companies that will risk so much to develop products for patients… this is something which should be shared, and imitated."

"It is not enough just to labor endlessly—everybody wants results. As (CIRM) President Alan Trounson puts it: 'I tell my colleagues here at CIRM probably at least once a week: 'We are in a hurry; we have a short time frame, and we need to get genuine cures to Californians.'"

Niche Links to CIRM Articles

Nature magazine's stem cell blog, The Niche, has a rundown and links to various pieces concerning the status of the California stem cell agency.

Monya Baker wrote,

"The leadership and governing structure of CIRM have come under a lot of criticism. Its 29-member board is politically appointed and must include patient advocates as well as high-ranking officials from the institutions most likely to receive CIRM funds. Its plans to give loans and grants to companies have been called both essential and overambitious. The agency has also been praised for taking a leadership role in drafting guidelines and for helping to maintain a U.S. pipeline of stem-cell scientists. "