Yamanaka Wins Kyoto Award

The Japanese stem cell scientist who pioneered reprogramming of adult stem cells has won the prestigious Kyoto Award, a $550,000 prize from the Inamori Foundation for research in advanced technology.

Shinya Yamanaka, who also has a lab at UCSF's Gladstone Institutes and is working with a CIRM-connected firm, is in San Francisco for the International Society of Stem Cell Research's annual convention.

David Pearlman, science editor of the San Francisco Chronicle, wrote,

“Robert Lanza, chief scientific officer of Advanced Cell Technology and an adjunct professor at Wake Forest University's stem cell research center, said recently that Yamanaka's work 'is likely to be the most important stem cell breakthrough of all time.'”

Jef Akst of The Scientist reported,

“Yamanaka's 2007 Cell paper was one of the most-cited papers last year, according to ISI. Last year, the No. 1 spot in The Scientist's Top 10 Innovations of 2009 went to a group that induced pluripotency in mouse embryonic fibroblast cells using only proteins, including the protein form of Yamanaka's four transcription factors, avoiding genetic modification altogether.”

Yamanaka is director of the Kyoto Universityh's iPS research center, which has an agreement with iPierian, Inc., of South San Francisco, a company backed with $20 million from the Kleiner Perkins venture capital firm of Menlo Park, Ca.

The iPierian Web site says,

“iPierian is the first company to focus the power of iPS technology to revolutionize the drug discovery process by producing iPS cells derived from patients to create truly disease-relevant model systems. These systems can be used for the discovery of new drugs and ultimately for treating diseases more safely and effectively.”

Ipierian has a $1.5 million grant from the California stem cell agency seeking to identify small molecules that promote the reprogramming of human somatic cells to the pluripotent state. Berta Strulovici is the principal investigator on that grant. The firm says it plans to seek more during a clinical trial grant offering from CIRM in the next month or so.

Four principals in the Kleiner firm contributed nearly $6 million to Prop. 71, which created the California stem cell agency in 2004. The amount was 25 percent of all funds raised for the campaign.

Six Scientists Appeal Rejection of Grants; Read Their Letters to CIRM

Six researchers this week are publicly appealing negative decisions on their requests for millions of dollars from the $3 billion California stem cell agency.

The “extraordinary petitions,” which are available online, were filed in connection with a $30 million round of stem cell immunology grants that the CIRM board is scheduled to vote on at a meeting in San Diego beginning next Tuesday.

The petitions generally focus on reviewer comments concerning the science of the proposals. Some discuss value judgments made by reviewers. Some cite what the applicant considers are errors. One researcher notes that she is a Latina leader in bringing minorities into science(one of CIRM's aims is to increase diversity in the field). Another said that “certain key points of our proposal that may not have been fully appreciated by the review panel, perhaps due to lack of clarity on our part.” Another took issue with a reviewer's comment that the principal investigator did not have a “sufficiently strong CV.” Another pointed out that the application received a score of 67, which is two points below the cutoff line. CIRM board members have noted in the past that such minor numerical differences are virtually meaningless.

Here are the names of the scientists filing the petitions: Genhong Cheng of UCLA, Elaine Reed also of UCLA, Jeanne Loring of Scripps, Olivia Martinez of Stanford,  and Defu Zeng  of the City of Hope and Chih-Pin Liu, also of the City of Hope. The CIRM board includes members from all those institutions. However, they are not allowed to take part in deliberations or vote on applications of their institutions.

Click on names of the researchers to read their letters. Summaries of reviewer comments on all 44 applications can be found via this item.

Reviewers made positive decisions on 15 proposals. The board, however, can do anything it wants with the applications, although it rarely acts favorably on petitions. A number of board members are uncomfortable with the process, which is slated for a major public review in August.

Some of the scientists filing petitions are also likely to appear before the CIRM board meeting next week to make an additional pitch for their applications.

Interested persons can hear a discussion of the grants and the petitions during the meeting via an Internet audiocast. Directions for listening to the audiocast can be found on the board agenda.

Here is a link to additional reading on the appeal process at CIRM, including agency documents.

(Editor's note: An earlier version of this item incorrectly said that 44 applications were received and 16 approved.)

Fresh Info, and Plenty of It, From CIRM for Big Meeting Next Tuesday

The California stem cell agency today presented to the public an impressive array of information on its operations and plans, ranging from the nitty gritty of the budget of its chairman's office to a scenario that would see its operations extending into 2023.

All of the topics are scheduled for discussion or action at the CIRM board's two-day meeting that begins next Tuesday in San Diego.

We have been critical of CIRM's failure to provide the public with adequate and timely information concerning its activities. Today's postings represent a dramatic improvement. The agency and its staff are to be commended.

CIRM offered plenty of grist – more than we can do justice to in a quick summary. But here are a few highlights.

One of the more interesting matters to be considered by the 29 CIRM directors next week involves a long-range look at its expenditures and its strategic goals.

The staff's 12-page analysis had the following to say about a plan that would have the agency running through its $3 billion by 2019.

“This scenario raises the concern that CIRM may be pushing its programs forward too fast to meet its mission. Stem cell science is a rapidly progressing, fast moving field. However, it is still a young discipline. The next big advances to come out of basic research can only be imagined but it is not unreasonable to expect additional paradigm-shifting results in the next couple of years that will rival the initial development of iPS technologies. CIRM may well be in position to contribute to those breakthroughs but will it have enough money and time remaining to push them into the clinic? Currently, there are programs in the pipeline with potential for significant clinical benefits but, given the early stage of stem cell research and the well-documented studies of success rates in drug development, it is difficult to predict how many, if any, of them will fulfill that promise. However, as the field matures there will surely be many more therapeutic candidates and it is reasonable to predict that some of the later ones will have a greater chance of success because they will be able to take advantage of more advanced technologies.”

The staff also took a crack at the issues on a scenario into 2023.

The budget information, which has been the subject of some attention recently on the California Stem Cell Report, is vastly improved over last year. Detail is heaped on detail. Legitimate year-to-year comparisons are made. Expenses can be viewed by “cost centers,” meaning the office of the chairman, the president and so forth.

The proposed budget for the fiscal year that begins in two weeks totals $15.7 million, compared to the $9.7 million spent through May. Last year, directors approved a $13 million budget for the agency. CIRM ran significantly under budget on its payroll costs, the largest item in the budget, and external contracts, the second largest.

For next year, CIRM projects that salaries and benefits will increase by $1 million beyond last year's approved budget. However, the proposed figure of $8.5 million is well above the $6.3 million spent through May. CIRM has 45 employees currently and hopes to hit 50. It may exceed that if legislation passes removing the 50 person staff cap. Even without hiring beyond 50, benefit costs will rise by $400,000 because of state-mandated retirement benefits for some employees.

Other significant increases include $633,000 for grant working group meetings, $1.1 million compared to $574,000 approved for this year but even higher when compared to actual spending of $337,000 through May. External contracts will rise $506,000, hitting $2.8 million compared to last year's approved figure of $2.3 million. But the jump is much greater when compared to actual expenses through May of $1.4 million. Information technology, which appears to mainly involve continuing work on CIRM's critical grant management system, will jump $431,000, from $818,000 approved last year to $1.2 million. Actual spending through May is only $610,000.

Also up for consideration at the board meeting is a $45 million grant round for research into basic biology. The three-year awards will be available to both business and academic researchers.

CIRM also reported for the first time a partial accounting of some of the benefits it is receiving from the City of San Francisco's package to win placement of the agency's headquarters in Baghdad-by-the-Bay. For the current fiscal year, they included:

“• Rent – valued by auditors at $1 million
“• Overhead on office space - $650,000 (approximate)
“• Free internet line - $15,000
“• Use of Moscone Center for ISSCR annual meeting - $100,000
“• Use of City Hall Rotunda (2 receptions) - $10,000 each”

CIRM should compile an overview of the entire package in the not-too-distant future.

Also available as of this evening are five "extraordinary petitions" by researchers seeking to overturn negative decisions on their applications for immunology grants. They are Genhong Cheng of UCLA, Jeanne Loring of Scripps, Olivia Martinez of Stanford, Elaine Reed of UCLA and Defu Zeng of the City of Hope.

The postings of the petitions also came earlier than those for previous meetings of the CIRM board.

Campaign Contributions, Kleiner Perkins, iPierian and CIRM Grant

A biotech company heavily backed by venture capitalists who contributed nearly $6 million to the election campaign that created the California stem cell agency was awarded a $1.5 million grant this spring from the very same agency.

The firm, iPierian, Inc., of South San Francisco, reportedly plans to seek many more millions from the California Institute for Regenerative Medicine in the near future.

The venture capitalists are principals in Kleiner Perkins Caufield & Byers of Menlo Park, Ca. They include John Doerr and his wife, Ann, who contributed nearly $4 million to the Prop. 71 ballot initiative, according to state records. Doerr is well-known in company start-up circles and was involved in the early funding of Google and Amazon.

Other Kleiner contributors to the campaign included Vinod Kholsa, $500,000; Joseph Lacob, $750,017, and Brooks Byers, $480,000.

The Kleiner-related contributions amounted to 25 percent of the $24 million contributed in 2004 to create the stem cell agency.

During the 2004 campaign, some critics said that Prop. 71 amounted to little more than seed money for the venture capital community. The state voter guide's argument against the proposition said, “...(P)harmaceutical company executives and venture capitalists contributed $2.6 million (to gather signatures) to put this measure on the ballot. By getting taxpayers to fund their corporate research, they stand to make billions with little risk.”

In 2008, Kleiner launched its investment into what is now iPierian with $20 million. Kleiner is its single largest financial backer. One of Kleiner's partners has a seat on the five-member iPierian board.

In response to a query, James Harrison, outside counsel to CIRM, strongly defended the agency. He said its conflict of interest code exceeds the requirements of state law. The full text of Harrison's comments can be read here, but he said in part,

“In order to advance CIRM's mission, it is critical that venture firms like KPC&B (Kleiner) invest in stem cell companies so that these start-up companies have the funds necessary to bring therapies to the market.”

Kleiner did not respond to a request yesterday for comment.

The grant to iPierian was approved with the vote of the man who was the head of the Prop. 71 campaign, Robert Klein, a real estate investment banker in Palo Alto, Ca. He is now also chairman of the $3 billion California stem cell agency. Klein sits on the grant review group that makes the de facto decisions on grants. He participated in the closed-door session during which the iPierian grant (see review summary here) was approved and the full board meeting at which the decision was ratified. Harrison said no conflict of interest existed for Klein.

Harrison said,

“California conflict of interest law does not require recusal under
these circumstances. Indeed, the connection is so attenuated, it is difficult even to understand how this could ever rise to the level of a conflict.”

Harrison said Klein had no knowledge of the involvement of the Kleiner campaign contributors with iPierian. Harrison also said that Klein has pledged to “refrain from holding any financial interests in biotech companies as long as he is chairman.”

Another member of the grant review group had a direct connection to iPierian and was recused. She is Amy Wagers, a Harvard scientist who sits on both the iPierian scientific board and the CIRM grant review group. Wagers did not respond to a request for comment.

The stem cell company has other ties to CIRM. George Daley of Harvard, co-chair of the iPierian's scientific advisory board, is on the blue-ribbon scientific panel that is slated to assess CIRM's progress next fall. In addition to Wagers, two other members (Kevin Eggan and Chad Cowan)of the iPierian advisory board serve on CIRM groups that make decisions on grants and recommend research policies to the CIRM board. John Walker, the president of iPierian, and Ted Love, a CIRM board member, both serve on the 9-member board of directors of Affymax, Inc., of Palo Alto, Ca.

Daley and iPierian did not respond to a request for comments.

Ipierian has said it is interested in applying for more cash from CIRM. According to Ron Leuty of the San Francisco Business Times, the firm plans to seek an award in CIRM's new, $50 million clinical trial round. It is expected to be one of only three companies applying in that round.

We will carry the full text of remarks from Kleiner, iPierian or individuals mentioned in this item if we receive them.

Text of CIRM Response on iPierian Grant and Campaign Contribution

Here is the text of an email June 15, 2010, from James Harrison, outside counsel to the California stem cell agency, concerning the iPierian grant.

David,

Thanks for speaking with me this morning. CIRM's Governing Board has
set conflict of interest standards that exceed the requirements of state
law, and Mr. Klein has exceeded even these standards by refraining from
holding any financial interest in biotech companies during his tenure.
I understand that your story will suggest that Bob Klein should have
recused himself from the Board's consideration of an application
submitted by iPierian for a Basic Biology II Award because iPierian is
backed by Kleiner Perkins Caufield & Byers, one of whose principals is
John Doerr who, along with his wife, contributed money to the Prop. 71
campaign. I strongly disagree with your suggestion that Mr. Klein's
participation in the Board's consideration of the iPierian application
creates a conflict. Here are the facts:

1. The Board awarded a Basic Biology II grant ($1.48 million) to
iPierian in April 2010.

2. KPC&B invested $20 million in iZumi in July 2008.

3. iZumi merged with Pierian to form iPierian in July 2009.

4. In 2003 and 2004, John and Ann Doerr contributed to the Prop. 71
campaign.

5. Chairman Klein had no knowledge that: (a) KPC&B had invested in
iZumi; (b) iZumi had merged with Pierian to form iPierian; (c) KPC&B
became an investor in the new company as a result of the merger; or (d)
that George Daley was associated with iPierian (although had he known,
it may have increased his respect for the company).

6. Chairman Klein has no financial interests in biotech companies and
has pledged to refrain from holding any financial interests in biotech
companies as long as he is Chairman.

7. California conflict of interest law does not require recusal under
these circumstances. Indeed, the connection is so attenuated, it is
difficult even to understand how this could ever rise to the level of a
conflict.

8. In order to advance CIRM's mission, it is critical that venture
firms like KPC&B invest in stem cell companies so that these start-up
companies have the funds necessary to bring therapies to the market.

Bob also asked me to relay to you that he has great respect for John and
Ann Doerr, who contributed to the Prop. 71 campaign and to other
research institutions to support their efforts to find a cure for cancer
and other major diseases.

Thanks for your consideration of these points.
__________________________
James C. Harrison
Remcho, Johansen & Purcell, LLP
201 Dolores Ave.
San Leandro, CA 94577

CIRM Releases Budget Info

For those of you eager to dig into CIRM's proposed budget for next year, the agency yesterday afternoon posted a raft of documents dealing with the spending plan. At first blush, it appears to be a 21 percent increase over the budget that was approved for this fiscal year, which concludes at the end of the month. However, the spending for this year is running under budget, which would mean that the increase is actually higher. We will have more details on the budget later.

Read Reviewer Remarks on 45 Applications for California Stem Cell Grants

To its credit, the California stem cell agency yesterday posted a timely link to summaries of the scientific reviews of applications for funding to the tune of roughly $30 million.

The reviews include positive decisions by reviewers on 16 grants dealing with stem cell immunology, which are certain to be ratified by directors at their meeting next Tuesday in San Diego.

We have been critical of CIRM's failure to provide background information on important matters to be considered at its public meetings. In this case, the material came five days in advance of date when it is to be discussed and acted on.

Look for more information concerning the rejected grants later this week or early next. It is likely that some researchers will file “extraordinary petitions” seeking to overturn negative findings by the CIRM grant review group. Those petitions can filed up to five days before the board meeting. CIRM President Alan Trounson and his staff then make a decision on whether the appeal has merit.

Grant applicants are not identified until after the CIRM board takes action, and then only on winning researchers. Information contained in the reviews, however, includes the scientific score of approved grants and summaries of reviewer remarks, such as this on a rejected grant:

“Given the team's lack of progress on basic questions related to the T59 approach over the past several years, there is concern regarding the team's ability to provide new and important information with the proposed experiments in this application.”

Or this on a grant with the top score(87 out of 100):

“The reviewers considered the principal investigator (PI) to be exceedingly well qualified to direct the proposed research. The juxtaposition of his/her hematology and immunology expertise with the co-investigator's knowledge and experience in stem cell biology was viewed as a unique and noteworthy asset that significantly enhances the potential for success.”

Any researcher seeking cash from CIRM would do well to read all 45 reviews in order to understand better what is likely to gain approval.

CIRM's board meeting begins in four business days. But still missing from the agenda is a host of additional necessary background information. That includes the proposed spending plan for CIRM for the next fiscal year, which begins at the end of this month. The budget documents were delivered to CIRM Chairman Robert Klein, who controls the board agenda, on June 7 but were apparently not up to snuff.

In response to a query about the delay in posting, CIRM spokesman Don Gibbons said the budget is being revised. Also missing is information dealing with the agency's “strategic financial projections.”

For those who want to listen in on the meeting, the agenda now contains instructions on how to do that on the Internet.

The Latest on Calimmune and California Cash

The story of Calimmune and a $20 million CIRM grant has a brief, new chapter this week – an installment that includes the word “mysterious.”

For those of you who may have forgotten, Calimmune, which is based in Tucson, is involved with UCLA in some CIRM-funded research. The young firm has connections to Johnson & Johnson, Australia and former CIRM director David Baltimore, a Nobel laureate. We carried an item with more details last November.

Yesterday, Paul Knoepfler, a stem cell scientist at UC Davis, carried an item dealing with Calimmune on his blog. The piece was part of an ongoing discussion about CIRM funding to businesses. CIRM is barred from funding research out-of-state, be it conducted by business or academia.

He wrote,

“David Jensen reported that Calimmune has lab space in Pasadena. The only reference to that that I can find is here, where it is mentioned as a company in the "Pasadena Biosciences Group", a group of tech companies sharing a building in Pasadena.

“Being somewhat puzzled, I inquired with CIRM about Calimmune and they responded that they have verified that Calimmune has a California facility.  So as far as I can tell, all companies with CIRM funding have ongoing science in California.

“Calimmune still seems mysterious to me. Perhaps the most unusual things about Calimmune is it has no website and there is nearly zero information on it on the Internet. No apparent publications. No press releases. No industry analysis. It has been referred to as 'tightly held'...I guess so!”

When we originally reported about Calimmune, Louis Breton, the president of the firm promised more details around the beginning of this year. Nothing was forthcoming at that time, and he failed to respond to an email we sent to him on March 9.

State of Stem Cell Research Examined This Morning

Two prominent California stem cell researchers are featured this morning on radio station KQED's “Forum” call-in show to discuss the state of stem cell research.

Guests on the program, which can be heard on many public radio stations and Sirius radio, are Arnold Kriegstein, director of the UCSF Institute for Regeneration Medicine, and David Rowitch, professor of pediatrics and neurological surgery and chief of neonatology at UCSF. CIRM does not have a guest listed for the program, but UC San Francisco has received $105 million from CIRM.

The broadcast is keyed to the annual convention of the International Society of Stem Cell Research, which begins later this week in San Francisco.

Comments and questions can emailed via the Forum Web site for consideration for use during the show, which begins at 10 a.m. PDT.  The show will be archived for later listening.

California Stem Cell Directors to Give Away $30 Million Next Week and Tackle Budget

One day after a one-hour meeting to consider its budget for the coming fiscal year, directors of the California stem cell agency are scheduled next week to approve the $13 million-plus spending plan.

The budget, which will go into effect at the beginning of July, was the subject of a recent kerfuffle involving the failure of the agency to post publicly its expenditure plans. The budget is among the matters to be approved by directors of the $3 billion research effort June 22-23 at a meeting in San Diego. The directors are also expected to give away $30 million in about 20 grants that are likely to involve researchers in Australia and Germany.

The grants are for stem cell transplantation immunology research, a matter of special interest to CIRM President Alan Trounson. He has said immumnology issues need to be resolved before therapies can be fully developed. Plus, the international applicants could well include some of his former colleagues in the state of Victoria in Australia. Foreign collaborators, however, must find funding elsewhere. CIRM is barred from financing research outside of California.

As usual, no details or other background information is available on the matters to be considered by the full board nor for the one-hour, budget meeting of the Finance Subcommittee. Last year, however, directors approved a $13 million budget. Presumably that figure will rise somewhat for the coming fiscal year. Maybe more, if it includes spending for hiring substantially more staff, which would be permitted under legislation pending in Sacramento.

Other matters to be decided by the board include the concept behind a new round of grants for basic biology research, appointment of new member to the Standards and Grants Working Groups and a “technical” change in the CIRM compensation program.

Also on the agency is discussion of strategic financial projections. While it is widely believed that CIRM has a 10-year life that began in 2004, no such legal limit exists. CIRM Chairman Robert Klein has discussed a timetable that extends CIRM's life to 2017. It could continue beyond that if the agency can secure additional funding after its existing $3 billion in state bonds run out.

Another discussion topic for directors is something called “development candidate portfolio review.” CIRM's agenda offered no clue to what that matter covered.

The San Diego meeting is unusually long -- scheduled for two full days. Normally the board begins late in the afternoon and then continues into the evening on the first day of a two-day meeting. It has been finishing up on the second day in mid-afternoon. Next week's meeting begins at 10 a.m. on the first day and runs to 8 p.m. The second day is scheduled for 9:30 a.m. to 4:30 p.m.

The board's Evaluation Subcommittee is in the process of conducting the first-ever evaluation of Klein's performance. It held one closed-door session last week and has another scheduled this week. A personnel session is included in the full board meeting next week. If the board takes some action on Klein, it might be announced following that executive session.

The Finance Subcommittee will hold its teleconference meeting on the budget with public access available in San Francisco, Los Angeles, La Jolla, Irvine and San Diego. Specific locations can be found on the agenda. The public will have an opportunity to participate at those locations.

The meeting of the full board is likely to be available on an audiocast on the Internet, but public participation is not available by that means. Directions for the audiocast are expected to be posted later.

Budget Contretemps: CIRM Takes Another Run at Spending Plan

The California stem cell agency has rescheduled for June 21 consideration of its budget for the fiscal year that begins in July.

CIRM cancelled an earlier meeting scheduled for Thursday after it failed to post publicly the budget documents on its web site, a perennial problem with important information needed for CIRM meetings. The Thursday meeting was scrubbed after the California Stem Cell Report on Tuesday published an item headlined, “CIRM Stiffs Public on Spending Plan.” Documents were also not available for the June 21 meeting at the time of this writing.

In a comment filed yesterday with the California Stem Cell Report, Don Gibbons, CIRM's chief communications officer, said the budget documents were submitted to CIRM Chairman Robert Klein five days ago. It was not clear whether those documents were being revised. We queried Gibbons this morning concerning the missing information for the public.

A CIRM insider said that it is “a bit alarming” that CIRM failed to provide the budget information to both the public and directors for the Thursday budget meeting of the Finance Subcommittee. The source said that the same problem occurred last year, and the staff promised to distribute the information in a timely fashion. The insider said the issue reflected poorly on the stem cell agency. (The full text of the source's remarks can be found here.)

California's state Constitution provides the public with a broadly construed right to state government information.

CIRM's Gibbons has not responded to our request Wednesday for an explanation for cancellation of Thursday's budget meeting.

CIRM's Budget Preparation Problems a 'Bit Alarming'

The California stem cell agency called off its budget review meeting this week apparently because of its inability to provide the spending plan information in a timely fashion.

According to a source who can be identified only as a CIRM insider, the situation is “a bit alarming.”

The source said,

“Frankly, the budget documents were not provided in time for anyone, either board members or the public, to digest and understand them in order to conduct a meaningful decision-making process. What is surprising and a bit alarming is that the same problem occurred last year and staff committed then to timely dissemination of the budget for this year. The cavalier 'aw shucks' attitude towards preparing and disseminating on a timely basis the budget, which one knows a year in advance will be due, reflects either incompetence or an intentional effort to avoid meaningful oversight by the directors."

Another reader, who also must remain anonymous and who works elsewhere in state government, said that the problems indicate that CIRM needs help and organizational changes. He said his own agency has been successfully putting its budget together for months now with the assistance of the state Department of General Services and Department of Finance.

CIRM has not responded to our request earlier this week for explanation of why it cancelled yesterday's meeting of the directors' Finance Subcommittee. The cancellation came after we published on Tuesday an item headlined, “CIRM Stiffs Public on Spending Plan.”

Our comment: It is clear that this is a matter that reaches the highest levels of the stem cell agency. Failure of an orgtanization to perform routine tasks – which is what budget preparation is – in a routine fashion is a strong indicator of pervasive management problems.

Stem Cell Agency Calls Off Budget Session: No Public Info Available

The California stem cell agency today cancelled its Thursday review of its proposed budget for the next fiscal year after it failed to supply any information to the public on the spending plan.

The agency did not offer any explanation for the postponement of the meeting of the directors' Finance Subcommittee. Don Gibbons, CIRM's chief communications officer, also did not respond to a query early today from the California Stem Cell Report concerning the reasons for cancellation of the session.

On Tuesday, in an item headlined, “CIRM Stiffs the Public on Spending Plan," we reported that the $3 billion agency had “extended its practice of withholding important information from the public – this time in connection with its proposed budget for 2010-11.”

The item also said,

“At last year's budget meeting of the Finance Subcommitte, five CIRM directors publicly expressed displeasure at the lack of material made available to them concerning the budget. The situation was not much better at the full directors meeting later last June. The budget documents were woefully inadequate and were not responsive to questions raised earlier at the Finance Subcommittee meeting.

“The budget failed to make meaningful year-to-year comparisons and came late to both directors and the public. And then CIRM Chairman Robert Klein – in a bit of financial flim-flam – described the spending plan as a three percent decrease, when it actually was a 25 percent increase. CIRM compounded that misrepresentation by enshrining it -- albeit with qualifiers -- in a press release.”

We also queried Gibbons concerning an earlier version of the Finance Subcommittee agenda which said it would consider “funding sources to cover budget requirements.” That language was dropped from later versions of the agenda.

On Tuesday, Gibbons said,

“That wording was a cut-and-paste carryover from a prior meeting and in light of our current funding situation, it is no longer relevant.”

His comment apparently referred to the fact that CIRM now has bond funding that will carry it through the end of 2011.

Automated Info from CIRM

For those of you who want information directly from the California stem cell agency, here is a link to a list of the RSS feeds that CIRM provides.

Using the RSS process will send press releases, announcements and meeting agendas automatically to your computer. Announcements are often newsworthy, but CIRM does not consider them news releases.

CIRM and Aussie Hopes

Earlier today we carried an item about the hope of some Australian stem cell researchers that California would come to their financial aid.

We queried CIRM concerning the news report. Don Gibbons, CIRM's chief communications officer, replied,

“We are in discussion with the the Australian MRC regarding a potential
agreement like the one we have already for the state of Victoria. It would
be bound by the same stipulations as all our other international agreements,
which means California money would only fund Californians. I think the folks
there hope the opportunity to leverage both their monetary and intellectual
capital with ours might encourage more government support there.”

Gibbons also said the reporter on the Australian story, Andrew Trounson, was not related to Alan Trounson, the president of CIRM and former Australian stem cell researcher.

CIRM Stiffs Public on Spending Plan

The California stem cell agency this week extended its practice of withholding important information from the public – this time in connection with its proposed budget for 2010-11.

In just two days, the directors' Finance Subcommittee will consider the agency's operational spending plans, but not one word is available to the public or other interested parties.

The move is in keeping with CIRM's de facto policy of withholding background information on the subjects of many of its meetings until just prior to the actual sessions. Sometimes the material is not posted until after the sessions and is not available to directors at the meetings.

At last year's budget meeting of the Finance Subcommitte, five CIRM directors publicly expressed displeasure at the lack of material made available to them concerning the budget. The situation was not much better at the full directors meeting later last June. The budget documents were woefully inadequate and were not responsive to questions raised earlier at the Finance Subcommittee meeting.

The budget failed to make meaningful year-to-year comparisons and came late to both directors and the public. And then CIRM Chairman Robert Klein – in a bit of financial flim-flam – described the spending plan as a three percent decrease, when it actually was a 25 percent increase. CIRM compounded that misrepresentation by enshrining it -- albeit with qualifiers -- in a press release.

An early version of Thursday's Finance Subcommittee agenda included consideration of “funding sources to cover budget requirements.” That topic has been removed from the budget with no explanation. We are querying CIRM concerning the matter.

Aussie Stem Cell Scientists Looking for Help From California

Life is not so good for Australian stem cell researchers, and they are hoping that the $3 billion California stem cell agency can make things better.

At least so says a news report from Down Under. According to The Australian newspaper, proposed government funding for stem cell research will be slashed by 50 percent next year.

However, the article said,

“The scientists are hoping negotiations for a potential joint funding deal between the National Health and Medical Research Council and the $3 billion California Institute for Regenerative Medicine will deliver extra cash.

“The California institute, run by Australian stem cell pioneer Alan Trounson, has a joint deal with the Victorian government.

“Speaking from San Francisco, Professor Trounson told The Australian he was hopeful an agreement could be reached.

"'We can fund research together or we can do it independently, but if you do it independently you have to resource these teams adequately,' he said.”

Trounson was director of the Monash Immunology and Stem Cell Laboratories at Monash University prior to joining CIRM in 2008.

It is not clear how California could legally provide meaningfiul financial assistance to Australian stem cell researchers. CIRM is barred from spending research funds out-of-state, which Trounson apparently refers to in his comment about “independently” funding research.

We are querying CIRM regarding The Australian article, including whether the writer, Andrew Trounson, is related to Alan Trounson.

A Commentary on Cobbling Together CIRM Numbers

An anonymous reader has left a cogent comment on the “$210,000 PR help” item. The reader says, in part,

“No one should have to 'cobble' together numbers in order to engage a public entity in thoughtful debate about the work of, for, and funded by, the citizens of the State of California.”

You can read the full comment by clicking on the word “comment” at the end of the PR item, which will take you as well to other related comments, including one from CIRM.

Move to Allow Stem Cell Agency More Staff Advances in Legislature

The magic number now for CIRM in the California state legislature is 56.

That's the number of votes required in the 80-member state Assembly for passage of legislation that would remove the 50-person cap on the size of the staff at the $3 billion agency.

The bill, SB1064 by Sen. Elaine Kontominas Alquist, D-San Jose, cleared the Senate on a 33-0 vote on Thursday. The vote was pretty much a foregone conclusion, given that the bill has the support of Senate leadership. It now goes to the Assembly where it faces two committee hearings before reaching the floor. Approval is likely in the committees, but it is a bit trickier on the Assembly floor.

It only takes 15 lawmakers, either not voting or voting no on the measure, to block the bill. That's because Prop. 71, which created CIRM, enshrined in state law a requirement for a 70 percent vote to change the law concerning the stem cell agency. The rare and ill-considered super, super-majority provision gives a handful of persons extraordinary control over the fate of the bill. It would take only a couple of loopy lawmakers to reject the legislation, given the customary voting patterns in the Assembly.

CIRM dearly wants the employee cap removed. CIRM President Alan Trounson has warned that the quality of the agency's work will suffer without its removal. The limit was written into the 10,000-word initiative by CIRM Chairman Robert Klein.

Klein and 29-member CIRM board of directors have endorsed the Alquist bill, the first time they have given the nod to legislation that would affect the agency.

Here is a link to the analysis provided to lawmakers for the vote on the Senate floor.

CIRM Directors Judge Klein's Performance This Week

Directors of the California stem cell agency on Thursday will formally evaluate the performance of its chairman, Robert Klein, for the first time in five years.

Klein has headed the $3 billion agency since its inception, on a vote of its 29-member board of directors in December 2004. Initially, Klein, a wealthy Palo Alto real estate investment banker, took no salary and testified in court that he did not consider himself a state employee. However, he asked for compensation in 2008. The board agreed to give him $150,000 annually for what it defined as a half-time job.

Earlier this year, the directors' Evaluation Subcommittee held its first meeting to come up with procedures for evaluating Klein, the two vice chairmen,(Art Torres and Duane Roth) and CIRM President Alan Trounson. The transcript of that session can be found here.

While Klein has not had a formal evaluation during his tenure, directors discussed his performance  during the closed-door session in which they set his salary. Publicly, directors are generally effusive in their praise of Klein. Privately, some are not entirely happy. But it is clear that Klein has been the dominant force – which is probably an understatement – at CIRM since 2004.

Thursday's two-hour Evaluation teleconference meeting will begin with a public session, but is expected to promptly go into a closed-door session to deal with personnel matters(Klein's evaluation), a normal procedure permitted under state law. Following the executive session, the subcommittee is expected to reconvene and report any action that may have been taken.

Klein is a member of the Evaluation Subcommittee but is expected to recused from deliberations involving him.