California Lt. Gov. Gavin Newsom plans to nominate Southern California investor Jonathan Thomas for chair of the California stem cell agency, according to the San Francisco Business Times.
Reporter Ron Leuty cited an anonymous source in reporting the move today in his story on the nomination of Thomas by Gov. Jerry Brown and state Treasurer Bill Lockyer. State Controller John Chiang is yet to make his nomination.
In addition to Leuty, the Los Angeles Times and The Sacramento Bee today carried stories on their web sites about the nomination. The San Francisco and Los Angeles papers both cited coverage of the matter by the California Stem Cell Report.
Here are links to the stories in the Los Angeles paper (written by Eryn Brown) and The Bee(by Paresh Dave).
Here is a link to the Lockyer nominating letter, courtesy of The Bee. We hope to bring you Brown's 56-word letter during the weekend.
Friday, May 20, 2011
Prop. 71 Requirements for Chair of the California Stem Cell Agency
Here is the text of what Prop. 71 stipulates are the legal criteria for the CIRM chair.
"The chairperson and vice chairperson of ICOC (the CIRM governing board) shall be full or part time employees of the institute and shall meet the following criteria:
(A) Mandatory Chairperson Criteria
(i) Documented history in successful stem cell research advocacy.
(ii) Experience with state and federal legislative processes that must include some experience with medical legislative approvals of standards and/or funding.
(iii) Qualified for appointment pursuant to paragraph (3), (4), or (5) of subdivision (a)(which stipulate that the chair come from 'representatives' of 'disease advocacy' groups.) .
(iv) Cannot be concurrently employed by or on leave from any prospective grant or loan recipient institutions in California.
(B) Additional Criteria for Consideration:
(i) Experience with governmental agencies or institutions (either executive or board position).
(ii) Experience with the process of establishing government standards and procedures.
(iii) Legal experience with the legal review of proper governmental authority for the exercise of government agency or government institutional powers.
(iv) Direct knowledge and experience in bond financing."
Southern California Investor Nominated for Chair of the State's Stem Cell Agency
California Gov. Jerry Brown and the state's treasurer, Bill Lockyer, today nominated the head of a Southern California bond investment firm, Jonathan Thomas, as a candidate to become the new chairman of the $3 billion California stem cell agency.
Two other state officials, Controller John Chiang and Lt. Gov. Gavin Newsom, have the ability to nominate candidates to succeed Robert Klein at the research organization. However, they are yet to be heard from publicly.
Brown's nominating letter was very brief, only 56 words, and said nothing about Thomas other than nominating him.
Lockyer's letter was a bit longer. He said,
Thomas is reportedly favored by Klein as his replacement, although Klein has denied that through a spokesman. Thomas reportedly supports the much-criticized dual executive structure at CIRM in which the president and the chairman have overlapping responsibilities. Klein also favors continuation of the arrangement, which is codified in state law by Prop. 71. The ballot measure, which created by CIRM, was written by Klein and a handful of others.
The chairman's job carries a salary range that tops out at $529,100. However, the board earlier this year indicated that it was looking at no more than $400,000 for part-time work (up to 80 percent). Klein, an attorney and real estate investment banker, worked without salary for a number of years. At one point, he asked for compensation. The board approved a $150,000 salary for half-time work.
The board is expected to act on the nominations at its June 23 meeting in San Diego.
Two other state officials, Controller John Chiang and Lt. Gov. Gavin Newsom, have the ability to nominate candidates to succeed Robert Klein at the research organization. However, they are yet to be heard from publicly.
Brown's nominating letter was very brief, only 56 words, and said nothing about Thomas other than nominating him.
Lockyer's letter was a bit longer. He said,
"Mr. Thomas's experience as a public finance investment banker, attorney, board member of various government agencies, and board member of the Crippled Children's Society of Southern California, as well as his lifelong background, education and interest in biology and medical sciences, makes him exceptionally well-suited to fill the role of ICOC (the CIRM governing board) chair and to lead the ICOC into the next stages of its ongoing pursuit of cures through stem cell research."Thomas is chairman and co-founder of Saybrook Capital of Santa Monica, Ca., a firm that specializes in distressed and defaulted municipal bonds, an investment category that includes state bonds. The stem cell agency is funded by California state bonds. The state has the lowest bond rating of any state in the nation.
Thomas is reportedly favored by Klein as his replacement, although Klein has denied that through a spokesman. Thomas reportedly supports the much-criticized dual executive structure at CIRM in which the president and the chairman have overlapping responsibilities. Klein also favors continuation of the arrangement, which is codified in state law by Prop. 71. The ballot measure, which created by CIRM, was written by Klein and a handful of others.
The chairman's job carries a salary range that tops out at $529,100. However, the board earlier this year indicated that it was looking at no more than $400,000 for part-time work (up to 80 percent). Klein, an attorney and real estate investment banker, worked without salary for a number of years. At one point, he asked for compensation. The board approved a $150,000 salary for half-time work.
The board is expected to act on the nominations at its June 23 meeting in San Diego.
Seattle Gilead Exec Is Potential Candidate for Chair of California Stem Cell Agency
A third candidate and possibly a fourth has emerged for nomination as the new chairman of the $3 billion California stem cell agency.
One is Bruce Montgomery, an executive in Washington state with Gilead Sciences, Inc., of Foster City, Ca., reliable sources told the California Stem Cell Report. The other is Stephen Juelsgaard of Woodside, Ca. He is a former executive with Genentech who was appointed to the CIRM board recently. His appointment may indicate that he is not actively seeking to replace Robert Klein, who is resigning as chairman.
Scuttlebutt has it that Montgomery is favored by CIRM President Alan Trounson. Montgomery is senior vice president for respiratory therapeutics at Gilead. He was the founder and CEO of Corus Pharma of Seattle when it was purchased by Gilead in 2006. Prior to that he was an executive with Patho Genesis Corp. and worked at Genentech.
Montgomery was also once chairman of the Washington State Biotechnology and Biomedical Association. He is a physician with an active California license.
Juelsgaard's appointment to the board does not rule him out as a candidate for chair, but it would seem to make his possible nomination more awkward.
The other potential nominees whose names have surfaced are Frank Litvack, former CEO of Conor, and Jonathan Thomas, chairman of Saybrook Capital of Santa Monica, Ca.
Four statewide officials are charged with nominating candidates. The officials are the governor, treasurer, controller and lieutenant governor. Their nominations are expected on Monday if not sooner. The CIRM board can only choose among the nominees. The board is expected to take up the matter at a meeting in San Diego June 23.
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| Bruce Montgomery |
Scuttlebutt has it that Montgomery is favored by CIRM President Alan Trounson. Montgomery is senior vice president for respiratory therapeutics at Gilead. He was the founder and CEO of Corus Pharma of Seattle when it was purchased by Gilead in 2006. Prior to that he was an executive with Patho Genesis Corp. and worked at Genentech.
Montgomery was also once chairman of the Washington State Biotechnology and Biomedical Association. He is a physician with an active California license.
Juelsgaard's appointment to the board does not rule him out as a candidate for chair, but it would seem to make his possible nomination more awkward.
The other potential nominees whose names have surfaced are Frank Litvack, former CEO of Conor, and Jonathan Thomas, chairman of Saybrook Capital of Santa Monica, Ca.
Four statewide officials are charged with nominating candidates. The officials are the governor, treasurer, controller and lieutenant governor. Their nominations are expected on Monday if not sooner. The CIRM board can only choose among the nominees. The board is expected to take up the matter at a meeting in San Diego June 23.
Thursday, May 19, 2011
Cardiologist/Entrepreneur Eyed for Stem Cell Agency Chair
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Frank Litvack Cedars Photo |
He is Frank Litvack, former CEO of of Conor Medsystems Inc. of Menlo Park, Inc., which was purchased by Johnson & Johnson for $1.4 billion in 2006. Conor developed what Business Week called a "new breed of stent."
Several sources told the California Stem Cell Report that Litvack is one of several possibilities to replace Robert Klein, who is resigning effective June 23, as chairman of CIRM.
Four statewide officials are scheduled to make nominations for the post on Monday. At one point earlier this year, it appeared that there would be an effort to have the four nominate one person. However, that attempt has fallen by the way. John M. Simpson, stem cell project director at Consumer Watchdog of Santa Monica, Ca., said,
"There will definitely be choices."The 29-member CIRM board is expected to vote on the candidates at its meeting June 23 in San Diego. The CIRM directors Evaluation Subcommittee is expected to schedule a closed door meeting to interview candidates, who will make public presentations to the full board probably at the June meeting. At that time, the public will have an opportunity to comment.
The California Stem Cell Report disclosed yesterday that Jonathan Thomas, chairman of the Saybrook Capital of Santa Monica, Ca., is also under consideration as a candidate. Thomas is reportedly backed by Klein, although Klein has denied that via a spokesman.
Thomas is believed to support the current dual-executive structure at CIRM with overlapping responsibilities involving the chair and the president. The structure has been strongly criticized and has created public conflict in the past. Litvack reportedly favors a role that would place the chair instead in more of an oversight role.
Litvack has a slight connection already to the CIRM board. He and Sherry Lansing, chair of the CIRM Governance Committee, both serve on the Health Board of Advisors at RAND, a Santa Monica, Ca., thinktank.
In 2005 while Litvack was head of Conor, Business Week wrote about how the firm provided stock options to some doctors evaluating its technology, which was well-regarded.
The magazine said,
"Yet Conor's technology is difficult to assess, in part because some doctors helping to evaluate the devices have received stock options from the company. Among the 14 doctors who sit on Conor's scientific advisory board and are participating in clinical trials of its stent, three received consulting fees and five have received options, according to documents obtained by BusinessWeek.According to Bloomberg Business Week, Litvack is managing director of Calmedica Capital LP and a director of Nile Therapeutics Inc. and Pervasis Therapeutics Inc. From 1986 to 2000, he co-directed the Cardiovascular Intervention Center at Cedars-Sinai Medical Center. He has also founded Progressive Angioplasty Systems Inc., and co-founded itherX Pharmaceuticals, Inc.
"Such relationships are a growing source of concern in the medical-device industry, drawing increasing scrutiny from regulators and medical ethicists. Still, Wall Street is smitten with Conor's potential."
Wednesday, May 18, 2011
Klein Makes It Official -- His Last Day is June 23
Robert Klein, the first and only chairman of the $3 billion California stem cell agency, has officially resigned effective June 23.
His resignation came in a May 10 letter to the statewide officials who are responsible for nominating candidates for chair of the unprecedented research effort, which is generally regarded as the single largest source of funding in the world for human embryonic stem cell research.
Klein's resignation letter is significant because he has talked about leaving his post at earlier dates several times in the past but never has. His May 10 letter makes it official.
The governor, treasurer, controller and lieutenant governor are expected to make their nominations on Monday, if not sooner. The board is expected to choose among the candidates to fill Klein's slot at its meeting in San Diego June 23.
Klein has served six-and-a-half years as chair of the 29-member CIRM board of directors. His letter mentions eight years of work. That includes the time that he and a handful of others spent writing the 10,000-word ballot initiative, Prop. 71, that created the stem cell agency. It also includes his direction of the 2004 statewide electoral campaign on behalf of Prop. 71.
Here is the text of Klein's letter.
His resignation came in a May 10 letter to the statewide officials who are responsible for nominating candidates for chair of the unprecedented research effort, which is generally regarded as the single largest source of funding in the world for human embryonic stem cell research.
Klein's resignation letter is significant because he has talked about leaving his post at earlier dates several times in the past but never has. His May 10 letter makes it official.
The governor, treasurer, controller and lieutenant governor are expected to make their nominations on Monday, if not sooner. The board is expected to choose among the candidates to fill Klein's slot at its meeting in San Diego June 23.
Klein has served six-and-a-half years as chair of the 29-member CIRM board of directors. His letter mentions eight years of work. That includes the time that he and a handful of others spent writing the 10,000-word ballot initiative, Prop. 71, that created the stem cell agency. It also includes his direction of the 2004 statewide electoral campaign on behalf of Prop. 71.
Here is the text of Klein's letter.
"It has been my honor to serve as the Chairman of the Governing Board of the California Institute for Regenerative Medicine (“CIRM”) for the last six and a half years. With your support and the support of the other constitutional officers and the Legislature, we have made great strides towards achieving our goal of finding therapies and cures for Californians who suffer from chronic disease and injury. Just last week, CIRM’s Governing Board approved a loan to Geron, a California company, to support a human clinical trial involving the use of embryonic stem cells to treat individuals with spinal cord injury. We expect that CIRM’s Disease Team Research Awards, which were approved last year, will lead to additional human clinical trials within the next 24 months.
"Having spent the last eight years of my life dedicated to the cause of stem cell research, I remain deeply committed to CIRM’s mission. When I .,agreed to be considered for a second term, however, I made it clear that, in light of my personal and professional obligations, I could only serve six months. I am therefore writing to submit this letter of resignation from my position as the Chair of the Governing Board of CIRM, effective at the close of business on June 23, 2011."
"Thank you for your leadership and support of stem cell research. I strongly believe the advances of California’s stem cell scientists and clinicians will profoundly reduce the future of human suffering from chronic illness and injury."
Southern California Investor Identified as Possible Candidate for CIRM Chair
Robert Klein, chairman of the $3 billion California Institute for Regenerative Medicine, is backing the head of a Southern California investment firm to succeed him at the helm of CIRM as it pushes aggressively to bring stem cell therapies into the marketplace, according to a reliable source.
However, James Harrison, outside counsel to the CIRM board, flatly denied that Klein has endorsed any candidate.
Nominations for the position are scheduled to be announced on Monday. Klein's six-year term expired last December. Klein, a real estate investment banker and attorney, was re-elected to his post on an interim basis and said he will not serve after June.
The candidate in question is Jonathan Thomas, chairman and co-founder of Saybrook Capital LLC, of Santa Monica. The firm manages $750 million in investments, focusing on distressed and defaulted municipal bonds, a term that includes state bonds. CIRM is funded by bonds issued by the state of California, which has the lowest bond rating of any state in the nation.
Thomas has been connected with investments involving the city of Los Angeles, PG&E and the Los Angeles Community College District, according to Bloomberg Business Week. Other clients have included the Dodgers, Walt Disney, Catellus Development and Maguire Thomas. According to Bloomberg, Thomas is currently writing a medical mystery novel.
In 2005, Business Week provided this description of Thomas' firm.
CIRM responded our query through Harrison, who said,
Harrison replied,
Those officials are expected to make their nominations on Monday, if not sooner. Names of persons under consideration are not being publicly revealed prior to that date.
Last winter, Art Torres, co-vice chair of the board, was nominated for the top post but bowed out. It appears that he is not now actively seeking the position, although he has not responded to a question on the matter from the California Stem Cell Report.
The chair selection process last winter came up short after news reports surfaced that Klein was trying to engineer, behind closed doors, the selection of his successor. The headline on one story said, "CIRM: The Good, the Bad And the Ugly."
However, James Harrison, outside counsel to the CIRM board, flatly denied that Klein has endorsed any candidate.
Nominations for the position are scheduled to be announced on Monday. Klein's six-year term expired last December. Klein, a real estate investment banker and attorney, was re-elected to his post on an interim basis and said he will not serve after June.
The candidate in question is Jonathan Thomas, chairman and co-founder of Saybrook Capital LLC, of Santa Monica. The firm manages $750 million in investments, focusing on distressed and defaulted municipal bonds, a term that includes state bonds. CIRM is funded by bonds issued by the state of California, which has the lowest bond rating of any state in the nation.
Thomas has been connected with investments involving the city of Los Angeles, PG&E and the Los Angeles Community College District, according to Bloomberg Business Week. Other clients have included the Dodgers, Walt Disney, Catellus Development and Maguire Thomas. According to Bloomberg, Thomas is currently writing a medical mystery novel.
In 2005, Business Week provided this description of Thomas' firm.
"Nestled 3,000 miles from Wall Street in the beachside town of Santa Monica, Calif., Saybrook Capital is an unlikely player in the rough-and-tumble world of bankruptcies. But since it started in 1990, the 60-person boutique investment bank has carved out a key role in some of the country's largest bankruptcies, advising creditors of Pacific Gas & Electric and shareholders of Kmart and Adelphia Communications). Often it competes against much bigger firms such as Lazard and Rothschild. 'We tend to get the deals that are big, ugly, and complicated,' says Jonathan Rosenthal, who runs the firm's bankruptcy practice."Thomas has not responded to a query yesterday from the California Stem Cell Report.
CIRM responded our query through Harrison, who said,
"Don (Gibbons, CIRM's chief communications officer)advised us that you were planning on running an item stating that Bob has endorsed Jon Thomas for chair. In fact, Bob has not endorsed a candidate for chair. He has tried to assist individuals who have expressed an interest in the position by providing them with information and background regarding the agency. Bob believes the board as a whole should make the decision on the next chair after the constitutional officers make their nominations. As an individual board member, Bob will personally evaluate each candidate who is nominated based on the needs of the agency and the candidates' presentations to the board. Any representation that Bob has endorsed a specific candidate is not accurate."We queried Harrison again following his response, asking him about Klein's ties to Thomas and whether he(Harrison) was making a distinction between backing and endorsing.
Harrison replied,
"Bob is not backing any candidate for chair, has not had businessThe 29-member board of the stem cell agency is in an odd position concerning selection of a chair. Unlike most governing boards, CIRM directors are hamstrung in their choice of a director, courtesy of Prop. 71, which created CIRM and was written by Klein, Harrison and a handful of others. Under the terms of the ballot initiative, which altered the state constitution, the board can only pick a chairman from persons nominated by the governor, treasurer, controller and lieutenant governor.
dealings with Thomas, and has no historical social relationship with
him.
"Bob said he would be happy to talk with your source to correct this
misimpression and to understand why the individual has reached this
conclusion."
Those officials are expected to make their nominations on Monday, if not sooner. Names of persons under consideration are not being publicly revealed prior to that date.
Last winter, Art Torres, co-vice chair of the board, was nominated for the top post but bowed out. It appears that he is not now actively seeking the position, although he has not responded to a question on the matter from the California Stem Cell Report.
The chair selection process last winter came up short after news reports surfaced that Klein was trying to engineer, behind closed doors, the selection of his successor. The headline on one story said, "CIRM: The Good, the Bad And the Ugly."
Tuesday, May 17, 2011
Correction
The "Latest California Budget" item earlier today incorrectly indicated that CIRM had funds through about June. The correct date is about June of 2012.
Latest California Budget Proposal Not the Best News for CIRM
California Gov. Jerry Brown is proposing a "dramatically" reduced sale of state bonds, which are the only real source of income for the California stem cell agency, during the coming fiscal year.
His plan was contained in what is the known as the May revise of the governor's budget. Randall Jensen(no relation to this writer) wrote today in The Bond Buyer, a newswpaper devoted to public finance, that the plan is part of an effort to reduce what Brown called California's $81 billion "wall of debt." Jensen said,
If CIRM bonds are not part of the fall sale, it could lead to a cash flow crunch at CIRM, which says it has only enough funds on hand to meet its current commitments through about June of 2012. Competition for inclusion in the bond sale is likely to be stiff.
Brown's bond sales plans also assume enactment of his budget. However, Republicans have in the past successfully blocked tax increases, which are part of the spending plan, because of the requirement of a two-thirds vote for approval.
(Editor's note: An earlier version of this item incorrectly indicated that CIRM had funds through June. The correct date is about June of 2012.)
His plan was contained in what is the known as the May revise of the governor's budget. Randall Jensen(no relation to this writer) wrote today in The Bond Buyer, a newswpaper devoted to public finance, that the plan is part of an effort to reduce what Brown called California's $81 billion "wall of debt." Jensen said,
"The state already skipped its usual springtime general obligation bond issue at Brown’s behest. The revised budget proposal calls for selling only about $1.5 billion of GO (general obligation) bonds in the fall, as the state’s only GO issue of calendar year 2011, after selling $10.5 billion of GOs in 2010."Brown also proposed a $2.4 billion bond sale in the spring of 2012. He said the state currently has a backlog of $48.2 billion in unsold bonds.
If CIRM bonds are not part of the fall sale, it could lead to a cash flow crunch at CIRM, which says it has only enough funds on hand to meet its current commitments through about June of 2012. Competition for inclusion in the bond sale is likely to be stiff.
Brown's bond sales plans also assume enactment of his budget. However, Republicans have in the past successfully blocked tax increases, which are part of the spending plan, because of the requirement of a two-thirds vote for approval.
(Editor's note: An earlier version of this item incorrectly indicated that CIRM had funds through June. The correct date is about June of 2012.)
Former Genentech Exec Appointed to CIRM Board
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| Stephen Juelsgaard (Photo Iowa State) |
Stephen Juelsgaard of Woodside, Ca., was appointed by California Lt. Gov. Gavin Newsom to replace Ed Penhoet, a co-founder of Chiron. Penhoet had sat on the board since the agency's inception in 2004. He was vice chairman at one point and directed development of CIRM's intellectual property provisions. Juelsgaard fills a slot on the board reserved for a representative from a life science business.
Juelsgaard is a lecturer at the Stanford law school and a member of the board of directors of Ivivi Health Sciences LLC of San Francisco, a privately held firm that focuses on electrotherapy devices to relieve pain.
Juelsgaard was executive vice president of Genentech when he left the firm in 2009. He joined it 1985. Last fall he endowed a deanship at Iowa State University with $3 million. Juelsgaard holds a doctorate in veterinary medicine from the school.
Another former Genentech attorney, Elona Baum, is general counsel at CIRM, which has about 50 employees.
Monday, May 16, 2011
Trounson Joins the Blogging World
The president of the $3 billion California stem cell agency, Alan Trounson, has taken up blogging.
While he is no Matt Drudge(the high impact political blogger in Washington, D.C.), Trounson's effort is worth regular scrutiny especially by scientists seeking CIRM cash.
Trounson blogged on April 22 about his views on current stem cell research around the world. His item was an extension of the summaries that he presents to CIRM directors at their regular meetings.
Trounson wrote,
Trounson's new endeavor is a worthwhile contribution. It provides insight for other scientists and interested parties into the thinking at the highest level of a major funding organization.
As for Trounson's comments about PowerPoint, he is spot on. PowerPoint burdens every meeting of the CIRM board of directors and is a lazy and poor way of presenting complex information. Some critics refer to PowerPoint-induced sleep and death by PowerPoint. Says one critic,
While he is no Matt Drudge(the high impact political blogger in Washington, D.C.), Trounson's effort is worth regular scrutiny especially by scientists seeking CIRM cash.
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| Blogger Trounson |
Trounson wrote,
"Since I arrived at CIRM late in 2007 I have maintained a tradition of presenting some of the top science journal papers from the previous month or two at each of our board meetings. Beginning last month, I decided this would be easier to digest in a written document than in PowerPoint slides amid a harried board meeting. You can see an archive of these periodic stem cell reports on our website.Trounson went on to comment, via a separate link, on research by M. Eiraku, Sheng Ding, Elias Zambidis, Howard Chang, R. Perlingeiro, P. Ma, Shinya Yamanaka, E. Morrisey and Richard Lee.
"This month I want to start a second part of the new tradition, a brief blog note to let you know why I, as someone who toiled in stem cell labs for many years, chose these items as some of the most important papers in the field in the past month or so."
Trounson's new endeavor is a worthwhile contribution. It provides insight for other scientists and interested parties into the thinking at the highest level of a major funding organization.
As for Trounson's comments about PowerPoint, he is spot on. PowerPoint burdens every meeting of the CIRM board of directors and is a lazy and poor way of presenting complex information. Some critics refer to PowerPoint-induced sleep and death by PowerPoint. Says one critic,
"PowerPoint makes us stupid."The PowerPoint problem, pervasive in many organizations, may have been best captured in an article last year about its impact on the American military. The headline on the New York Times story said,
"We have met the enemy and he is PowerPoint."Consider this follow-up comment on military.com:
"The amount of information that gets conveyed in 20 Powerpoint slides is probably less than a five page paper. It takes forever to brief it, which limits the time for serious discussion by the audience or the senior officials who are subjected to the presentation.Enough said. I will now dismount from my PowerPoint soapbox.
"With Powerpoint, the military has been moving toward an oral tradition and away from the written word, with all the demands for precision, nuance and serious exposition that writing requires. And it's not just a problem for the military. The procedure has become quite common in other areas of government, among contractors and in think tanks.
"Sometimes Powerpoint presentations are used as a kind of bureaucratic filibuster: they can be a way to eat up time and restrict the opportunity for hard questions. But even when that is not the intent they are generally not the best means of communication. Clear and concise writing requires that issues be thought through and that is not always necessary if all that is required is to slap a few bullets on a slide.
"It would be far more efficient to prepare a concise and analytical paper that provides the essential information and arguments, circulate it in advance and then take questions about the assessment and recommendations at a meeting. If maps, graphics and charts are important they can be attached to the paper as needed. The essential information could be absorbed before the meeting, which could then be devoted to serious debate and discussion."
Friday, May 13, 2011
California Budget Mess Hamstrings Fresh Funding for Stem Cell Agency
The prospects for new sales of California state bonds – the only source of funding for the $3 billion California stem cell agency – remain dim, according to an article today in Bond Buyer.
"The California bond market has become hamstrung by the delay" in coming up with a prudent state budget in Sacramento, wrote Randall Jensen in the public finance newspaper.
Jensen(no relation to this writer) reported,
Outgoing CIRM Chairman Robert Klein told directors last month that he had hoped for new bond funds this past winter. According to the transcript of the directors' Finance Subcommittee meeting on April 19, Klein said,
"The California bond market has become hamstrung by the delay" in coming up with a prudent state budget in Sacramento, wrote Randall Jensen in the public finance newspaper.
Jensen(no relation to this writer) reported,
"California has no plans to go to market until the fall, and even that is far from certain. 'We still hope to be in the market this fall to sell $5.5 billion to $6 billion of GO bonds. But the treasurer has no interest in selling bonds without a balanced budget in place,' said Tom Dresslar, a spokesman for state Treasurer Bill Lockyer.The stem cell agency says it has sufficient cash to fund current commitments until roughly June of next year. There is no guarantee, however, that the agency would receive funds via the first round of bond sales even when they do occur. The state has about $37 billion in bonds awaiting sale. Competition for allocations will be stiff.
"Dresslar said GO-bond financed public works programs have enough funds to make it though the end of the calendar year, but added that if the state doesn’t go to market until next year current projects could face a shutdown."
Outgoing CIRM Chairman Robert Klein told directors last month that he had hoped for new bond funds this past winter. According to the transcript of the directors' Finance Subcommittee meeting on April 19, Klein said,
"It should be remembered that because of the large collaborative teams we build in California for disease teams, for example, or large collaborative teams that are necessary for clinical trials, and the international teams that we need to make certain that we retain a working reserve so that we provide assurances to these teams that this extraordinary effort they put together to bring together institutions and special expertise is not defeated, although we have an approved loan or grant. So, for that matter, it's important to the industry as well."
Missing Items: Problems with Blog Host
Two recent items have vanished from this blog because of worldwide problems with the hosting service, Blogger, which is part of Google's operations. Blogger says it is attempting to restore the items, which have disappeared from all of its thousands of blogs. If not, we will restore them later. Thanks for your patience.
Thursday, May 12, 2011
Geron Loan Draws Media Attention to CIRM
The state of California's first-ever venture into a clinical trial involving human embryonic stem cells garnered more than the usual news coverage last week for the Golden State's $3 billion stem cell research effort.
At least more than usual for the stem cell agency, which has received modest attention in the mainstream media in recent years.
The $25 million loan to Geron Inc. of Menlo Park, Ca., drew articles in newspapers ranging from the Los Angeles Times to the San Francisco Business Times. However, the story was ignored by the San Francisco Chronicle, the San Jose Mercury News and The Sacramento Bee, based on our searches. That despite the fact that the circulation areas of the San Francisco and San Jose papers include the headquarters of both Geron and the California stem cell agency.
The lack of coverage by those papers undoubtedly is a reflection of the current overtaxed nature of the newspaper business along with the difficulty of peddling stem cell research stories to reporters and editors.
Keith Darce of the San Diego Union-Tribune had most developed story that we saw. It included comments from another stem cell company and termed the award "historic." Darce also pointed out that the loan is part of CIRM's effort to help stem cell companies through what is known as a financial valley of death – a period in which it is difficult to find conventional financing.
Eryn Brown at the Los Angeles Times, the state's largest newspaper and which has paid scant attention to CIRM, wrote,
To win voter approval of a new bond issue will require concrete results, such as those envisioned in the Geron trial, to justify continued state support of stem cell research.
Geron's three-year clinical trial is aimed at assessing the safety of its treatment. Any regular use of the therapy is probably a decade or more away because of the need to test its efficacy and to clear regulatory hurdles. Geron hopes to enroll 10 patients in its trial. The firm picked up its second in Chicago, according to a report this week.
Here are links to more stories, some of which incorrectly described the award as a grant, along with links to press releases on the state loan to Geron: Geron's press release, CIRM's press release, CaliforniaHealthline, Science magazine, Nature, myfoxla.com(two Los Angeles TV stations), xconomy and Fierce Biotech,
At least more than usual for the stem cell agency, which has received modest attention in the mainstream media in recent years.
The $25 million loan to Geron Inc. of Menlo Park, Ca., drew articles in newspapers ranging from the Los Angeles Times to the San Francisco Business Times. However, the story was ignored by the San Francisco Chronicle, the San Jose Mercury News and The Sacramento Bee, based on our searches. That despite the fact that the circulation areas of the San Francisco and San Jose papers include the headquarters of both Geron and the California stem cell agency.
The lack of coverage by those papers undoubtedly is a reflection of the current overtaxed nature of the newspaper business along with the difficulty of peddling stem cell research stories to reporters and editors.
Keith Darce of the San Diego Union-Tribune had most developed story that we saw. It included comments from another stem cell company and termed the award "historic." Darce also pointed out that the loan is part of CIRM's effort to help stem cell companies through what is known as a financial valley of death – a period in which it is difficult to find conventional financing.
Eryn Brown at the Los Angeles Times, the state's largest newspaper and which has paid scant attention to CIRM, wrote,
"John M. Simpson, a consumer advocate with Consumer Watchdog in Santa Monica, Calif., said that making a loan to support a clinical trial made sense. While his group has worried in the past about awards becoming 'boondoggles,' he said in this case Geron's trial was vetted carefully and the company met the requirements needed for funding. 'It could provide cures. That's what everyone wants,' he said. 'I'm watching it with interest.'"CIRM's press release quoted outgoing agency Chairman Robert Klein as describing the state's investment as a "landmark step." But he cautioned that severe setbacks could be encountered. He said,
"We need to be prepared to stand by the heroic patients and the companies as they face these challenges and solve the problems that stand in the way of the recovery of patients from paralysis."Over the last year, Klein has talked up another bond issue for CIRM that could total as much as $5 billion. CIRM operates on borrowed money (state bonds), which doubles the real cost of all its activities because of the interest expense.
To win voter approval of a new bond issue will require concrete results, such as those envisioned in the Geron trial, to justify continued state support of stem cell research.
Geron's three-year clinical trial is aimed at assessing the safety of its treatment. Any regular use of the therapy is probably a decade or more away because of the need to test its efficacy and to clear regulatory hurdles. Geron hopes to enroll 10 patients in its trial. The firm picked up its second in Chicago, according to a report this week.
Here are links to more stories, some of which incorrectly described the award as a grant, along with links to press releases on the state loan to Geron: Geron's press release, CIRM's press release, CaliforniaHealthline, Science magazine, Nature, myfoxla.com(two Los Angeles TV stations), xconomy and Fierce Biotech,
Wednesday, May 11, 2011
Coming up
We have dropped the hook in Panama in a bay near the entrance to the Panama Canal, where behemoths of the sea parade by hourly on their way to the Atlantic Ocean. We are catching up on California stem cell affairs and hope to have a fresh posting soon.
Saturday, April 16, 2011
Lure of the Sea
The siren call of the sea is being heard once again. We are raising anchor to continue our journey to Panama from our current location in Puerto Jimenez in Costa Rica. The California Stem Cell Report will go dark, so to speak, until we find another Internet connection, which could range from a few days to about two weeks. Rest assured – or not so assured – that postings will resume in the not-too-distant future.
CIRM Directors Tackle Grant Appeal Problems
The longstanding issues involving appeals of grant reviewer decisions at the $3 billion California stem cell agency will be taken up once again April 26 by the directors' Science Subcommittee.
The agenda also includes possible action on a bank for reprogrammed stem cells.
No details are yet available on any of the proposals to be considered, but potential applicants for grants and loans would be advised to watch the appeals changes closely.
The agenda also includes possible action on a bank for reprogrammed stem cells.
No details are yet available on any of the proposals to be considered, but potential applicants for grants and loans would be advised to watch the appeals changes closely.
Friday, April 15, 2011
California Stem Cell Report Cited as One of 25 Best Stem Cell Blogs
The California Stem Cell Report has been named one of the 25 best stem cell blogs by a web site targeting readers interested in nursing education.
In preparing the list, nursingschools.net said,
Two blogs by scientists were among the 25 including one by Paul Knoepfler of UC Davis and another Robert Lanza of Advanced Cell Technology of Santa Monica, Ca.
Of Knoepfler's work, the web site said, "The UC Davis School of Medicine maintains this blog, providing readers with information on everything stem cell as well as other science-related issues."
Of Lanza, the web site said, "Dr. Robert Lanza is a scientist and professor working on issues related to cell technology and engineering; his blog will provide readers with some insights into the field and his research."
Another blog cited was Ben's Stem Cell News. Nursingschools.net said, "Ben Kaplan is a (California) stem cell activist, blogger and a biotech professional who shares his thoughts and the latest information on stem cells here."
Kaplan appeared in campaign ads in 2004 for Prop. 71, which created the California stem cell agency.
In preparing the list, nursingschools.net said,
"Whether you’re pursuing a career in medicine or science, if you’d like to keep up with these advances, then blogs on the issue are one of the best tools out there. Here, you’ll find a collection of blogs that provide all the information you’ll need to stay on top of the latest in stem cell discoveries."The web site said of the California Stem Cell Report,
"See how stem cell politics are affecting research and development in California through this blog written by journalist David Jensen."Also mentioned were blogs with California ties and one from the California stem cell agency. CIRM Research Results, produced by Amy Adams, was the only government blog cited. Nursingschools.net said Adams' report "shares" CIRM's "latest discoveries and political battles."
Two blogs by scientists were among the 25 including one by Paul Knoepfler of UC Davis and another Robert Lanza of Advanced Cell Technology of Santa Monica, Ca.
Of Knoepfler's work, the web site said, "The UC Davis School of Medicine maintains this blog, providing readers with information on everything stem cell as well as other science-related issues."
Of Lanza, the web site said, "Dr. Robert Lanza is a scientist and professor working on issues related to cell technology and engineering; his blog will provide readers with some insights into the field and his research."
Another blog cited was Ben's Stem Cell News. Nursingschools.net said, "Ben Kaplan is a (California) stem cell activist, blogger and a biotech professional who shares his thoughts and the latest information on stem cells here."
Kaplan appeared in campaign ads in 2004 for Prop. 71, which created the California stem cell agency.
Thursday, April 14, 2011
California Stem Cell Agency Plans a More Than 16 Percent Budget Boost
The California stem cell agency is proposing an $18.5 million operational budget for the coming fiscal year that will include a more than 12 percent increase in staff and reflect the rising costs of monitoring more than 400 grants and loans.
The agency did not disclose the size of the increase for the spending plan compared to actual spending projected through the end of the current fiscal year June 30. CIRM only offered a comparision to spending that was approved last June ($16 million). The proposed budget is up 16 percent from that figure. The agency, however, has been running behind the approved spending levels so the actual budget increase is likely to be substantially higher than 16 percent.
In documents prepared for a meeting Tuesday of the CIRM directors' Finance Subcommittee, the agency's staff briefly noted that a cash crunch could occur in the coming fiscal year if the state does not sell additional bonds, the only real source of funding for CIRM's $3 billion effort. A continued suspension of bond sales is likely this year because of the state's financial crisis.
The budget document said,
The budget document said CIRM is "well aware" and "sensitive" to California's fiscal crisis and said its spending plan is aimed at controlling spending.
The document said it reflects "continued increases in the programs, activities and overall workload at CIRM, and it mirrors changes in the number of fulltime employees, which is expected to grow to 56 from the target for FY2010-11 of 50 (an increase of 12%)."
With $1.2 billion committed out of $3 billion, CIRM cited a significant increase in workload, including a 47 percent hike in "payment transactions" for grants and loans from 663 to 975 and a 21 percent increase from 467 to 563 in scientific progress reports and "prior approval requests" for changes in awards.
Eight new positions are proposed, up from the current staff level of 48(a 17 percent increase). One is a "director of public communications" in the office of the chair of the agency. Two others are an information technology director and a special projects officer to help CIRM President Alan Trounson develop new initiatives and deal with biotech industry executives.
The largest budget category is for compensation, $10.3 million. The second largest category is outside contracting at $3.3 million. "Direct legal costs," many of which are contracted, are scheduled to hit $2.3 million. The agency is heavily reliant on outside contracting because of the former legal limit of 50 on the size of its staff. That limit was removed by legislation that went into effect at the beginning of the year.
The spending plan shows that CIRM is still wrestling with its critical grants management system after several years of work. It proposes spending $933,977 on the effort this year out of a total information technology budget of $1.3 million. It is not clear whether that figure includes the hiring of an information technology director, as proposed elsewhere in the spending plan.
The office of the chair, which includes both outgoing Chairman Robert Klein and co-vice chair Art Torres, is budgeted for $3.9 million. Again no comparision is available to estimated spending for this year, but the figure is up from the $3 million approved last June for the current year. Klein says he will leave his post this June. No successor has been chosen. The largest increases in Klein's budget appear to be in compensation (new hires) and outside contracting.
The Finance Subcommittee is expected to forward its recommendations on the budget to the full CIRM board at its meeting in early June.
The budget information from CIRM is coming much earlier than it has in the last several years, a significant improvement in an important aspect of the agency's openness and transparency. It also provides directors and the public with ample time to examine the proposal, raise questions and make suggestions for changes.
The public can take part in the meeting at locations in San Francisco (3), Pleasanton, Palo Alto, Irvine, La Jolla and Berkeley, Specific addresses can be found on the agenda.
The agency did not disclose the size of the increase for the spending plan compared to actual spending projected through the end of the current fiscal year June 30. CIRM only offered a comparision to spending that was approved last June ($16 million). The proposed budget is up 16 percent from that figure. The agency, however, has been running behind the approved spending levels so the actual budget increase is likely to be substantially higher than 16 percent.
In documents prepared for a meeting Tuesday of the CIRM directors' Finance Subcommittee, the agency's staff briefly noted that a cash crunch could occur in the coming fiscal year if the state does not sell additional bonds, the only real source of funding for CIRM's $3 billion effort. A continued suspension of bond sales is likely this year because of the state's financial crisis.
The budget document said,
"If no new bonds are sold during FY 2011-12, expenditures could reach the 6% (legal, Prop. 71)cap by June 2012. However, plans are progressing to request authorization for new bond sales this year."No further information was provided concerning the bond situation, although it is to be considered as a separate item at the meeting next week.
The budget document said CIRM is "well aware" and "sensitive" to California's fiscal crisis and said its spending plan is aimed at controlling spending.
The document said it reflects "continued increases in the programs, activities and overall workload at CIRM, and it mirrors changes in the number of fulltime employees, which is expected to grow to 56 from the target for FY2010-11 of 50 (an increase of 12%)."
With $1.2 billion committed out of $3 billion, CIRM cited a significant increase in workload, including a 47 percent hike in "payment transactions" for grants and loans from 663 to 975 and a 21 percent increase from 467 to 563 in scientific progress reports and "prior approval requests" for changes in awards.
Eight new positions are proposed, up from the current staff level of 48(a 17 percent increase). One is a "director of public communications" in the office of the chair of the agency. Two others are an information technology director and a special projects officer to help CIRM President Alan Trounson develop new initiatives and deal with biotech industry executives.
The largest budget category is for compensation, $10.3 million. The second largest category is outside contracting at $3.3 million. "Direct legal costs," many of which are contracted, are scheduled to hit $2.3 million. The agency is heavily reliant on outside contracting because of the former legal limit of 50 on the size of its staff. That limit was removed by legislation that went into effect at the beginning of the year.
The spending plan shows that CIRM is still wrestling with its critical grants management system after several years of work. It proposes spending $933,977 on the effort this year out of a total information technology budget of $1.3 million. It is not clear whether that figure includes the hiring of an information technology director, as proposed elsewhere in the spending plan.
The office of the chair, which includes both outgoing Chairman Robert Klein and co-vice chair Art Torres, is budgeted for $3.9 million. Again no comparision is available to estimated spending for this year, but the figure is up from the $3 million approved last June for the current year. Klein says he will leave his post this June. No successor has been chosen. The largest increases in Klein's budget appear to be in compensation (new hires) and outside contracting.
The Finance Subcommittee is expected to forward its recommendations on the budget to the full CIRM board at its meeting in early June.
The budget information from CIRM is coming much earlier than it has in the last several years, a significant improvement in an important aspect of the agency's openness and transparency. It also provides directors and the public with ample time to examine the proposal, raise questions and make suggestions for changes.
The public can take part in the meeting at locations in San Francisco (3), Pleasanton, Palo Alto, Irvine, La Jolla and Berkeley, Specific addresses can be found on the agenda.
California Stem Cell Directors to Huddle on New Chair Candidates
A key group of directors of the California stem cell agency will meet
Tuesday behind closed doors to discuss candidates to succeed Robert Klein as chairman of the $3 billion research effort.
The Governance Subcommittee has scheduled the session although it does not have any official candidates for the post. Only four state officials – the governor, treasurer, controller and lieutenant governor – can nominate candidates for the position, which could pay up to $400,000 annually for parttime work. None have done so.
The four officials have said they will not make nominations until perhaps as late as May 23.
Over the last couple of months, however, CIRM directors have indicated that they might have names that they would like to discuss, in addition to meeting with individuals to see if they have an interest in serving.
Presumably next week's meeting will take up such matters.
Tuesday behind closed doors to discuss candidates to succeed Robert Klein as chairman of the $3 billion research effort.
The Governance Subcommittee has scheduled the session although it does not have any official candidates for the post. Only four state officials – the governor, treasurer, controller and lieutenant governor – can nominate candidates for the position, which could pay up to $400,000 annually for parttime work. None have done so.
The four officials have said they will not make nominations until perhaps as late as May 23.
Over the last couple of months, however, CIRM directors have indicated that they might have names that they would like to discuss, in addition to meeting with individuals to see if they have an interest in serving.
Presumably next week's meeting will take up such matters.
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