WARF hESC Patent Update: Seven Years and Challenge Still Underway

Last week UC Davis stem cell researcher
Paul Knoepfler and Scripps researcher Jeanne Loring engaged in an
online Q&A that touched on patents and how they can stifle
research and discourage development of therapies.

Loring did not mention it in the Q&A
but she is the key figure in the ongoing challenge to the WARF
(Wisconsin Alumni Research Foundation)
patents on human embryonic
stem cells. Her effort began in 2006 but has dropped out of the news.
We asked her for an update on the case.
Here is the text of what she replied,

Dan Ravicher is the lawyer behind
several big patent cases, including the recent Supreme Court case
challenging human gene patenting (Myriad), and a challenge to
Monsanto's restrictive enforcement of its patents on genetically
modified seeds. 

“I'm lucky that he is also the lawyer
working with John M. Simpson (of Consumer Watchdog) and me to
challenge the WARF patents.  Currently, we are getting ready for
another year of appeals and counter-appeals on the third of WARF's
three patents that give them control over all human embryonic stem
cells.

“This is Dan's summary of the current
situation:

"'We filed challenges at the
Patent Office to all three of WARF's hESC patents. During those
challenges, WARF agreed to narrow all three of the patents, and
they also loosened their licensing requirements. But, even
though the patents were narrowed, we still think they're invalid, and
thus disagree with the Patent Office's decision to re-issue them in
the narrowed forms. Unfortunately, due to the age of the patents and
changes in the law, we were only allowed to appeal one of the three
decisions, and that appeal is now pending at the Court of Appeals in
Washington. But, we expect the decision in our appeal will affect
the validity of the other two patents, since they're all basically
on the same technology." 

“The 'narrowing' of the patents has
had an unexpected consequence.  Before the narrowing, WARF's
patents would have covered iPSCs as well as hESCs. After the
narrowing, they can only claim hESCs.”

In the Q&A on Knoepfler's blog,
which also involved an interesting discussion of IPS research,
Loring said,

Patents
on fundamental things
--
genes, human embryonic stem cells, iPS cells
--
allow the patent holder to have a monopoly, preventing anyone else
from using whatever they’ve patented.

Patents
are supposed to stimulate investment in development.  Why, as
Justice Scalia said last week, would anyone have the incentive to
study a gene and, for example, develop diagnostic tests, if they
couldn’t prevent everyone else from working on that gene?

But
patents also stifle competition and the advances that come from
having many different groups studying the genes or cells.  One
of the main reasons I returned to academia was so I could have
freedom to study human ES cells without worrying about getting
threatening letters from a patent holder, demanding that I either
stop working on the cells or pay a steep licensing fee.

There
will inevitably be problems commercializing iPSC-based therapies and
assays, because at least three institutions own patents on aspects of
iPSCs.  I’m paying attention to the patent
'landscape,'
but have decided to deal with those problems when they arise, and
hope that the iPSC patent holders realize that the potential of these
cells is too great to keep to themselves.  It would be better
for all of us if the issue of stem cell patents never has to be
decided in the Supreme Court.”

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/fXlAaqQbBAs/warf-hesc-patent-update-seven-years-and.html

Patient Advocate Reed Defends Klein Donation to Stem Cell Agency

The California Stem Cell Report today
received the following email from Don Reed, a patient advocate, who
has long been involved in California stem cell agency affairs. Reed
is vice president of public policy for Americans for Cures
Foundation,
 a position he has held for some years. Americans for
Cures is the personal lobbying organization created by Robert Klein,
former chairman of the California stem cell agency. Reed said his
opinions below are his own and may or may not reflect those of the
foundation.

“I must take issue with your entry,
'Robert Klein Gives $21,630 to the California Stem Cell Agency,' May
05, 2013.

“When
Bob Klein donated $21,630 to the California stem cell program (to
allow scientists to attend a research conference in Japan) he was
doing exactly what he always does: advancing research to ease
suffering and save lives.  The scientists needed a way to attend
a top-level conference. Believing in the benefits of researchers
sharing thoughts, Bob paid for their trip.

“Unfortunately,
your article appears to imply corrupt motivations.

“'A
seemingly innocuous…gift…generated a wave of special favors for
(Klein) that stretched out to include a gold mining multimillionaire
from Canada.'.
A 'wave of special favors?'  The article
states that 'Klein wanted to meet with the six science officers…'
 and to get their impressions on the conference.

“Is
that not natural? First, would it not be helpful to hear from the
scientists if the trip was worth the time and expense? Second, Bob
Klein works in real estate, a full-time job. He does not have the
scientist’s automatic involvement to keep him up to speed on
everything new in regenerative research. But he wants to know the
latest: what is working, what is not. He is always eager for a chance
to speak one-on-one with an expert.

“He met with a Canadian
millionaire? Why is this shocking? The millionaire supports stem cell
research; so does Bob. California is working closely with Canada on
several projects; they pay their scientists, we pay ours; more bang
for the buck. If there is a person with the resources and will to
advance Canadian research, it is natural that Bob would want to
develop a deeper interest in the shared research.

“And why
should Klein be criticized for supporting a research project
attempting to alleviate Alzheimer’s? He saw his own mother die of
the disease, after losing the ability  to recognize her own son.
 I am familiar with that particular Alzheimer’s project, and
it had some amazing results, restoring memory to laboratory rats.
This was a water maze test, and the rats recovered the memory of a
pathway out of the water, which they had forgotten. To the best of my
knowledge, no one else in the world had achieved memory return, and
the project deserved the most serious consideration.  Yes, the
board of directors voted against the Grants Working Group; it is not
only their right but their responsibility to exercise judgment, and
not merely be a rubber stamp for the GWG.

“There is also the
matter of free speech. Anybody else in California can come to the
meetings of the program and voice their opinion—why should Klein be
denied the right to voice his opinion?

“Bob Klein owns no
stem cell stock, no biomedical enterprises. Financially, supporting
stem cell research has cost him a great deal. This is the man who led
the fight to build the California stem cell program, donating roughly
six million dollars, taking out loans on his house to help finance
Proposition 71. And, for six years (without salary) he worked
full-time as Chair of the Board of the oversight committee.
Physically and emotionally, it has been an exhausting decade for him.
He has not profited in any way, except to see the advancement of
research for cure.

“Passing a $3 billion stem cell program
in the midst of a recession was like relocating Mount
Everest—seemingly impossible, but he did it anyway. He moved the
mountain. Thousands of people helped, but one man made it possible.
Without Bob Klein, California would not have the greatest stem cell
program in the world: challenging diseases considered incurable since
the dawn of time. That he should continue to support it, with his
dollars, time, energy and creativity, is commendable.

“Sometimes
a good deed is just that: no sinister motivations, no secret
agendas-- just a positive action which benefits all.”  

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/hW_Zc6qeDYY/patient-advocate-reed-defends-klein.html

Stem Cell Agency Approves $36 million to Recruit Six Scientists to California

The California stem cell agency today
awarded $36 million to six scientists to lure them to the Golden
State, in what was the agency's largest-ever recruiting round.

The awards more than doubled the amount
of CIRM has spent on recruitment. Until today, the agency had awarded
only $23.2 million for four awards.
Today's awards ranged from $7.5 million
to $4.8 million. The agency did not immediately identify the recipients. However, testimony at the meeting indicated that two of the institutions involved were UC San Francisco and the Gladstone Institute (the $7.5 million award) and UC Santa Cruz (a $5.4 million award). (The agency later released the list, which can be found here. Here is a link to the CIRM press release.)

The differences in the size of the awards had to do with the overhead charges that are levied by the institutions at which the scientists would work, CIRM staff said. The "direct costs" of the research for each grant was $4.5 million.

Six applications were considered in the
latest round, including one that was scored at 75 that was rejected by grant reviewers. However, CIRM staff recommended that application, which involved UC San Francisco and Gladstone, be funded. (See here and here.)
Previous winners of the recruitment awards were Robert Wechsler-Reya, Sanford-Burnham; Dennis Steindler,
The Parkinson's Institute; Andrew McMahon, USC
, and Peter Coffey, UC
Santa Barbara.

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/4jJo64qAjcY/stem-cell-agency-approves-36-million-to.html

$36 Million Recruitment: Names of Researchers Being Lured to California

Here are the names of the researchers being recruited to California by the California stem cell agency with $36 million in awards. The sixth asked not to be revealed since he/she has yet to tell the current institution and are in
negotiations with their new institution

·      Hiromitsu
Nakauchi
of the University of Tokyo, who would be moving to Stanford
University
·      Barry
R. Stripp
of Duke moving to Cedars-Sinai Medical Center
·      Richard
Gregory
of Harvard and Children’s Hospital, Boston moving to UC
Santa Cruz
·      Eric
Ahrens
of Carnegie Mellon moving to UC San Diego

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/Kbc3TScH6ds/36-million-recruitment-names-of.html

Nature Reports on Lee Hood Conflict Case

The journal Nature and genomeweb.com
today picked up the story from the California Stem Cell Report about
the conflict of interest case at the California stem cell agency involving renown scientist Lee Hood of
Seattle, Wash.

Science news aggregators on the
Internet also relayed various versions of the story. The facts were
first reported on this blog yesterday. The matter involved a $24
million application for a genome project involving Irv Weissman of
Stanford. Hood was one of the reviewers in the round. Hood and
Weissman are longtime friends and own property together in Montana.
They have also have a number of professional relationships.
In piece by Ewen Callaway, Nature
additionally referred to ongoing conflict of interest issues at the agency,
including the findings of an Institute of Medicine study. Harold Shapiro, head of the study, said the agency directors make "proposals to themselves, essentially, regarding what should be funded. They cannot exert independent oversight." 
The genomeweb item was also brief and
did not mention the IOM study.

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/xBpF71FS1Ys/nature-reports-on-lee-hood-conflict-case.html

California Stem Cell Agency to Court Patient Groups This Summer

Jonathan Thomas, chairman of the California stem cell agency, said this morning that he and a team from the agency will begin a round of meetings this summer with patient advocate groups throughout the state.

He said the effort is aimed at keeping the groups up to speed on developments at CIRM. While Thomas did not mention it to the agency's governing board, it is also critical that the agency have strong support from patient advocate groups as it tries to develop new sources of funding, either public or private.

The agency will run out of cash for new grants in 2017 and hopes to have a plan for the future before the board later this year. Its initial assumptions include as much as $200 million in onetime public funding with more cash coming from the private sector.

Currently the agency is funded by state bonds at a cost of about $6 billion, including interest. It spends roughly $300 million a year on grants and loans for research.Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/lra474LHezU/california-stem-cell-agency-to-court.html

Klein, StemCells, Inc., and $31,000 in Consulting Fees for Torres

The Robert Klein-StemCells, Inc.,
affair has taken another turn with the disclosure that a vice
chairman of the California stem cell agency was paid at least $31,000
over a two-year period by Klein and also voted on behalf of Klein's
effort to win approval of a $20 million award for StemCells, Inc.

Art Torres received what he reported were
consulting fees during 2011 and 2012 from firms controlled by Klein, former chairman of
the agency. In 2012, Torres backed Klein's
efforts to override grant reviewers' rejection of the $20 million
application from the Newark, Ca., publicly traded firm.
Art Torres, center, with Bob Klein, left, at Klein's last meeting in
2011 as chairman of the California stem cell agency.
 Incoming chairman Jonathan Thomas is at right. 

The 29-member board of the California
Institute for Regenerative Medicine (CIRM)
, as the agency is formally
known, narrowly voted 7-5 last September for the award. It was the
first time that the board has approved an application rejected twice
by its scientific reviewers. It was also the first time that Klein
has lobbied the board on behalf of a specific application since
stepping down in June 2011. He was elected chairman in 2005 as the
agency was just beginning its work and is an iconic figure to many in
the California stem cell community.

Asked for comment last week by the
California Stem Cell Report, Torres said,

"My decision to support an award
to StemCells, Inc. to explore the use of neural stem cell
transplantation to treat Alzheimer's disease was based on the merits
of the application and the hope it offers to patients who suffer from
Alzheimer's, a disease that affects millions, including Bob Klein's
late mother. I have no financial interest in StemCells, Inc. nor does
Bob Klein, and my decision to support the award has no connection
whatsoever to the work I do with Bob Klein."

Kevin McCormack, senior director for
public communications at CIRM, said that Torres' statement would be
the only comment on the matter from the agency.
Klein did not respond to questions,
declaring that personal issues were occupying his time.
The California Stem Cell Report's
questions to all three dealt with the propriety of Torres' employment
by both CIRM and Klein while Klein was asking the board to award a
business $20 million. The governing board has a code of conduct that
declares members should “maintain the highest standards of
integrity and professionalism.” However, it does not speak to
questions of appropriate employment by CIRM directors outside of the
agency.
In January 2012, Torres authored a document discussing CIRM's conflict of interest rules. He said they
are intended “to eliminate even the appearance of impropriety.”
He also referred to CIRM's policy on “incompatible activities”
for employees. It deals with activities that could “discredit”
the agency or that are “inimical” to it. However, it does not
specifically deal with the type of situation involving Torres and
Klein, who is a real estate investment banker and attorney. The policy additionally does not address cases where a
governing board member is also an employee of the agency.
Torres' economic disclosure statements,
which are required by state law, contain only broad ranges for compensation, and the amount could be significantly higher than
$31,000. Torres reported that in 2011 he was paid between $10,001 and
$100,000 by both Klein Financial Corp. and K CP Cal, which share the
same address as Klein's offices in Palo Alto. In 2012, Torres reported receiving between $10,001 and $100,000 from K CP Cal and
between $1,001 and $10,000 from Klein Ventures LLC, which also has
the same address.
Torres reported that the payments were
consulting fees and that the firms dealt with real estate. He did not
respond to requests for more details.
Torres earns $225,000 a year in his part-time role as one of two vice chairmen for the agency. Under the
arrangement, he works four days a week.
Torres was chairman of the state
Democratic Party and a longtime state legislator. He was nominated
for vice chairman in 2009 by state Treasurer Bill Lockyer, among
others.
Last week, another financial
arrangement involving Klein surfaced in connection with the
StemCells, Inc., application. Klein gave the agency $21,000 last May,two months before he pitched the board on the StemCells, Inc.,application. The donation was not reported to the board prior to
Klein's appearances before the panel. The agency's regulations
require such gifts to be reported to the board but do not specify a
time frame. Following inquiries from the California Stem Cell Report,
the agency said it would report the donation at the agency board
meeting next week.
Klein's donation financed a trip by six
CIRM science officers to Japan for an international stem cell
conference. The agency directed the officers to give special access
to Klein. Two of the officers were heavily involved in the grant
round that included the StemCells, Inc., application, which scientific reviewers scored at 61 on a scale of 100.

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/7zwWISe_LMA/klein-stemcells-inc-and-31000-in.html

Text of CIRM Comments on Lee Hood Questions

Here is the full text of the statement
today by Kevin McCormack, senior director for public communications
at the California stem cell agency, in connection with the conflict
of interest issue involving Lee Hood, president of Institute for
Systems Biology
of Seattle, Wash. See here for a story on the matter.

McCormack's comments came in response
to the following questions from the California Stem Cell Report.

“Did (CIRM President Alan) Trounson
recruit Hood to serve on the grants working group?

“Does CIRM perform any sort of
serious examination of the statements of interests of its scientific
reviewers prior to specific review sessions. The conflict involving
Weissman and Hood was easily detected by a Google search. The first
two entries on the search term "lee hood irv weissman"
raise serious red flags. Additionally, I imagine it is more than
common knowledge among many in the scientific community that
these two scientists are longtime friends.”

Here is McCormack's reply,

“Alan helps recruit many reviewers,
including in this case Dr. Hood, but he is not involved in assigning
reviewers to individual applications. Furthermore he expects all
reviewers to declare whatever conflicts they have.  

“Yes, we do a serious examination of
statements of interest from all our reviewers. However, this conflict
was not identified by the reviewer either in the financial disclosure
statement or identified in the conflict of interest list. Normally we
do not check Google for all possible combinations of 15 GWG reviewers
times about 200 individuals listed in these applications. That would
be about 3000 independent Google searches to identify a possible
conflict. While this relationship may be known to some it certainly
was not known to the CIRM staff who checked the conflicts. If it had
been they would have raised it before the meeting.

“It's also important to point out
that Dr. Hood was a new member of this review panel and was not
familiar with our conflict of interest rules. This was clearly a case
of a new reviewer making an innocent error.

“Finally, CIRM’s rules are stricter
than state law, and this would not have been a conflict under
California conflict of interest law.”

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/1ndmVIt2OlQ/text-of-cirm-comments-on-lee-hood.html

The Klein Donation: Text of Stem Cell Agency's Key Responses

Here is the text of the key comments
from the California stem cell agency in response to questions from
the California Stem Cell Report (CSCR) concerning the $21,630
contribution by Robert Klein. Here is a link to the full story on the matter.

CSCR to CIRM:

“Is CIRM concerned about the
appearance created by the donation from Bob Klein to enable scientific
staff to attend the ISSCR meeting in Yokohoma, coming one
month after the GWG (the review group) rejected StemCells Inc's Alzheimer's application
and one month before the July Board meeting that led to the approval
of the award?”(Editor's note: It was actually two months before the board meeting.)

CIRM's response:

“No, the two items are entirely
separate with no connection. Item 1  involved Bob Klein making a
donation to allow science officers to attend a critically important
scientific meeting on stem cell research.  The science officers
 had originally planned on attending but then were told they
could not because of cuts in our out-of-state travel budget – Bob
Klein’s donation, without using state funds, enabled the science
officers to attend.  Item 2 is an ICOC decision to fund a
research project that they felt had promise and was important for the
people of California.”

CSCR to CIRM:
"Please explain why the agency
could not finance the trip itself ."
CIRM's response:
"During the financial year 2011/12  the
Governor's Office issued an Executive Order requiring state agencies,
under the Governor's direct authority, to reduce out-of-state travel.
 Although CIRM was not required to participate, we nevertheless
imposed restrictions on out-of-state travel to meet the intent/spirit
of the Governor's request.  Accordingly, we made a decision to
reduce the number of our science staff who would be attending the
 conference.  Bob Klein's donation made it possible
for those staff to go." 

CSCR asked several questions re the
failure to report the Klein donation to the board as required by
agency rules.
CIRM's response:

“Under the Gift Policy, the President
had the authority to accept Mr. Klein’s generous offer as a 'Direct
payment or reimbursement by third parties for the costs of general
operation or grant management administrative activities.' (Gift
Policy, Sec. III(A)(2).)  Because CIRM receives gifts only
infrequently, CIRM staff determined that it would be more efficient
to report gifts to the Board on a semi-annual basis.  Mr.
Klein’s donation was the first gift CIRM had received in some
years.  Due to the lack of additional donations, a transition in
CIRM’s finance office, and an oversight, CIRM staff has not yet
presented a report including Mr. Klein’s gift.  Staff plans to
report Mr. Klein’s gift as part of the finance report at the May
Board meeting.  Because the President had the authority to
accept the gift pursuant to section III(A)(2) of the Gift Policy, it
did not require a commitment letter.  (See Gift Policy, Sec.
III(C)(1) ['A Commitment Letter is not required for gifts described
under III.A.2., 3. and 4.'].)  However, consistent with the
policy, Dr. Trounson sent Mr. Klein a letter of appreciation, a copy
of which we have already provided you.”

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/dQImAqKe0Ys/the-klein-donation-text-of-stem-cell.html

The Klein Donation: Text of Robert Klein's Response re StemCells, Inc.

Here is the text of the initial
response from Robert Klein, chairman of the California stem
cell agency until July 2011, to questions from the California Stem Cell Report (CSCR)
concerning his $21,630 donation to the agency. The questions posed by
CSCR on precede the response by Klein. Here is a link to a story on
the matter.


CSCR to Klein:

“Why did you give the agency the
money?
“Did you place on conditions on its
use?
“Did anyone connected with the agency
indicate in advance  that your donation would be desired? If so
who? Who did you deal with primarily on the donation -- Trounson,
Thomas or...?
“The donation came one month after
grant reviewers rejected StemCells Inc.'s Alzheimer's application. Do
you think it was appropriate to make the donation and then ask the
board twice to override its reviewers?
“Do you think the donation and
subsequent action on StemCells, Inc.'s Alzheimer's application will
negatively color the perception of future efforts by CIRM at private
fundraising?”

Klein's response:
“In April or May of 2012 I committed
approximately $20,000 as a contribution to CIRM to cover the travel
expenses of staff to the International Stem Cell Society
meeting in Japan. My commitment to ensure scientific staff can
participate in international meetings dates back many years. In 2011
I wrote the following explanation of its importance in obtaining the
knowledge to accelerate the drive of scientific research to reach
patients with chronic disease.
            Leverage
Leading Edge Science
           
“Travel by CIRM staff members and leadership permits CIRM to stay
in contact with, and understand, the leading edge advances of
scientists all over the world, and to leverage those advances by
creating a platform for collaborations between these leading
scientists and their peers in California. Currently, CIRM has
collaboration agreements with 15 foreign governments pursuant to
which these governments have pledged $134,380,000 in commitments to
fund the work of their scientists on join teams with California
scientists to develop therapy candidates and to advance therapies to
human trials. Although a significant amount of this commitment is
currently pending scientific peer review and not all of it will be
awarded as part of a successful application, every dollar in
funding by a foreign government magnifies the scientific impact of
California’s taxpayer dollars. If just $40 million is awarded each
year over ten years, it would provide California with $400 million of
scientific leverage.
  •     It
    is critical to understand that there are unpublished scientific
    discoveries in progress in each of these nations. Often, publication
    may trail a scientific discovery by nine months or more.
  •     The
    travel requested by CIRM provides a critical link for the timely
    transmission of valuable new information. California cannot afford to
    lose the opportunity to harness discoveries in other countries to
    advance the development of therapies in California and to capture the
    opportunity to advance therapies for patients instead of using
    California taxpayer dollars to duplicate discoveries already mastered
    in other countries.
  •      While
    CIRM’s scientific staff works with scientists in other countries to
    capture the scientific knowledge for the benefit of California’s
    therapy development teams, the Chairman’s Office works with
    international finance ministers, the premiers of international
    states, and foreign funding agencies to ensure funding allocations
    for these bilateral funding agreements. These discussions often
    involve face-to-face negotiations in foreign nations and states, in
    addition to meetings at international conferences, all of which are
    supported by extensive staff work in California.
  •      CIRM
    issued its first co-funding awards early in 2009. Over the last two
    years, these agreements have yielded $57 million in international
    funds actually approved through peer review. This $57 million
    represents participation by only the first five countries and one
    international state with which CIRM established a collaboration. Now,
    CIRM has agreements with nine countries and two international states
    and an additional three countries will be added in the near future.
  •     Even
    if CIRM were only to obtain $30 million per year in international
    matching funds, the ratio of return on CIRM’s $206,920 travel
    expenditures would be approximately 145 to 1.
  •    Proposition 71 specifically anticipated
    and directs CIRM to develop leverage and global leadership to capture
    the benefit for patients.
Keeping on the Cutting Edge of Stem
Cell Science
"CIRM’s over 20 MDs and/or PhDs
science officers on the grant review staff at CIRM reach out
nationally and internationally through conferences that may include
10-20 meetings per day and workshops of 8-12 hours per day to grasp
the leading edge of this pre-publication, dynamic
revolution in medical knowledge. In order to ensure that the
every research dollar is optimally deployed to advance therapies to
save lives or rescue the quality of life for patients, it is critical
that CIRM staff remain on the cutting edge of new discoveries.
International conferences and workshops provide a critical
opportunity for massive and decisive transfers of information, which
ensures that California is funding the right research.
“I principally corresponded with Dr.
Trounson on the issue covering the travel expenses for the staff for the reasons stated above. I had no input into the selection
of scientific staff. In May and even in June when the conference
occurred I had no idea that there would be any disagreement on the
Alzheimer’s application of Stem Cells Inc. in August. At the Board
meeting I asked that there be consideration for the fact that three
other peer reviews had found the work leading up to this application
to be outstanding and they had ranked it highly. In addition, the
current peer review had not been briefed on the fact that they
downgraded the applicant for following the directions on material
points by the prior peer reviews. Finally, the standard deviation on
the 2012 peer review was extremely high and the re-review by the
three member committee resulted in a split decision. It is
particularly appropriate with a huge standard deviation,
demonstrating both strong support and opposition within the peer
review group, for the Board to make its own independent decision. 
Please recall that the staff recommended against approval so that
they clearly were not influenced by my commitment to a contribution
to the Agency, months before, for the benefit of scientific staff to
be able to attend an international science conference. Additionally,
Dr. Trounson, I believe, recused himself from the review of the Stem
Cells Inc. application, for unrelated reasons, so he was not
involved. I personally had served on the three prior peer reviews,
including one in the prior year that recommended this application for
a Disease Team approval. I know how strongly the scientists on those
three prior peer reviews supported funding this scientific research,
with the 2011 review specifically recommending this Disease Team for
approval. I believe it was extremely important for me to provide a
voice to those three scientific panels who disagreed with a portion
of the scientists on the 2012 scientific panel. Supporting the
scientific movement to human trials for Alzheimer’s has to be
eventually approved by the FDA; but, this loan will move the science
and the potential for clinical trials forward significantly and
hopefully obtain FDA approval. I believe all three of the Board’s
overrides of the peer review recommendations on the Disease Team
round in 2008 are leading directly to human trials in the United
States and/or United Kingdom. 92% of the all of the funds awarded by
CIRM have followed the recommendations of the peer review committee;
but, in those significant cases where the Board has made an
independent decision, there has been an extremely high success rate
particularly when there has been a high level of disagreement within
the Peer Review Board that was overridden and prior peer reviews
recommended and/or approved the scientific approach and concepts of
the applicant.”

(Editor's note:  The applications in this round were reviewed once in April 2012 by CIRM's full grant review group. StemCells, Inc.'s application was subject to a reevaluation after Klein's appeal in July 2012 and rejected again, but it was not a full review.  Klein may be referring also an earlier round that provided grants for planning to apply for the full $20 million.) 

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/57qJcfMUql0/the-klein-donation-text-of-robert_5.html

hESC Research Totals $458 Million out of $1.8 Billion from California Stem Cell Agency

The California stem cell agency today
said that it has awarded $458 million to fund research involving
human embryonic stem cells (hESC) out of a total of $1.8 billion it
has given away during the past eight years.

The amount is of some interest because
the key reason that the agency now exists is the perceived
need in 2004 to fund hESC research in the wake of the Bush
Administration restrictions on federal funding in that area. The
restrictions created a national uproar in the scientific and patient
advocate community, which feared that promising therapies would never
be developed.
The $35 million ballot campaign to
create the agency focused hard on hESC research to the virtual
exclusion of any mention of adult stem cell research. Opposing the
effort were such forces as the anti-abortion movement and the
Catholic church. But this month LifeNews.com carried a mildly
approving item that pointed to the agency's turn towards adult stem
cell research.
When the Obama administration lifted
the Bush restrictions, some questions were raised about the need for
the California effort, which is costing state taxpayers $6 billion,
including interest. But those concerns received little public
attention and quickly died out.
Funding for the agency comes through
state bonds. Cash for new awards is scheduled to run out in 2017. The
agency is looking at developing a public-private effort for thefuture that would need a $50 to $200 million “public investment”
and major private funding.
Amy Adams, CIRM's communications
manager, provided the $458 million figure following publication of
this item yesterday on the California Stem Cell Report.

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/iQOiBLaIRNc/hesc-research-totals-458-million-out-of.html

The Klein Donation: Text of Robert Klein's Comments on Special Treatment by CIRM

Here is the text of comments from
Robert Klein, former chairman of the California stem cell agency,
concerning his $21,630 donation to the agency and subsequent actions
by the agency. Klein's comments May 1 came in response to questions
from the California Stem Cell Report(CSCR) on April 30. The text of
the inquiry from CSCR precedes Klein's response. Here is a link to the story on the matter.

CSCR to Klein:

"I have sent the following to CIRM
asking for their response and am offering the same opportunity to
you. Here is what I sent the agency:
'The documents that I have received so
far show that after Klein gave CIRM $21,000 the agency instructed six
of its science officers to give him special access to their
activities and apparently did not object to additional instructions
from another member of the public, Melissa King, to provide Klein and
her with written summaries about their activities at the ISSCR
convention and “details” about their work at CIRM. Email
addresses of the six were also provided to Klein, who may have
additionally received their cell phone numbers although that is not
entirely clear. The CIRM documents show that the six were told to
engage in one-on-one sessions with Klein, which actually included a
third person, a wealthy Canadian mining company executive. One
document indicates that the science officers should assist in
fundraising for CIRM by identifying areas of “special importance”
to Klein and 'other donors.'
"'Additionally, Alan Trounson, at
Klein's request, invited the mining executive to a closed door
session involving the agency's international partners, a session at
which presumably valuable, little known scientific information would
be discussed and future directions charted. Trounson specifically
told the executive that it was Klein who asked that executive be
invited to the session, adding to Klein's clout in any business or
other dealings that Klein might have with the executive.'

My questions to CIRM deal with the
special treatment that was provided in connection with your donation.
I would ask you if you think that state agencies should provide this
sort of extraordinary treatment for individuals who donate to the
agency. At the very least, doesn't this raise questions about the
integrity of the agency and doubts in the public mind about whether
it can be fair and even-handed in its activities?

Klein's response:

"In April or May of 2012 I committed
to contribute a charitable donation to CIRM to cover the travel costs
for 5-7 additional science officers to attend the International Stem
Cell Conference in Japan.  It is important to CIRM that their
science officers understand the cutting edge research being developed
around the world so that CIRM does not fund redundant research; but,
to the contrary, the science officers understand how to create
networks between California scientists and scientists in other
foreign countries who are doing complementary research that can
potentially accelerate the advancements of therapies for patients. I
do not hold any financial interest in biotech companies. I have
historically been involved in encouraging international collaboration
to advance medical therapies; for patients, every day of delay in the
development of a therapy is a delay they cannot afford. To
conceptually document the value of additional scientists traveling to
these meetings, it was discussed that there should be conceptual,
bullet point summaries about the value for CIRM obtained through the
scientists discussions at the international conference.  The
idea was to create bullet points of information about a few of the
most meaningful scientific concepts and contacts the science officers
benefitted from each day of attendance at the conference. I did not
participate in the selection of the science officers who attended and
I did not play any part in determining what activities they
participated in. There were two fundamental goals to the very short
one-on-one sessions that were arranged at "down time" that
would not conflict with their other activities. The first goal was to
conceptually understand if each of the science officers believed that
the benefit to the agency was sufficient to justify the cost of their
attending, when considering the learning and contacts they had gained
which might accelerate research and therapies for patients. The
second goal was to assist universities and non-profits, principally
in Canada - a research partner of CIRM - in advancing their
contributions from an existing donor or donors.

"The Canadian mining executive had an
important history in contributing to the International Stem Cell
Society and to Canadian non-profit research institutions. This
individual has an expert background in mining and a passionate
personal commitment to medical research; but, he does not engage in
technical discussions of research. On a conceptual basis it was
important for him to understand the spectrum of medical advances
towards therapies. His additional contributions to Canadian
non-profits could assist Canada in collaborating with California on
more international research, with California only funding the
research done in California and the donor helping to fund the
research done in Canada. No specific grant applications were
discussed. Finally, the discussion with the international partners
focuses on the funding process and funding collaboration it does not
discuss any individual grants. The value of international
collaboration and the benefits of collaborating with new
international partners is discussed. Scientific theories and
individual grants are not discussed and new scientific information is
not presented. I attended this session of international partners to
support international collaboration; again, I do not hold any
financial interest in any biotech organizations. Additionally, I do
not have any business or financial relationship with the Canadian
mining executive. The Canadian executive, based upon family and
friends who have had chronic disease, is a significant donor to
non-profit research institutions in Canada. All of my activities, the
donation and the encouragement to develop information to validate the
future benefits of science officers traveling to international stem
cell conferences were focused on benefitting California patients with
chronic illness or injury and the agency formed through Proposition
71."

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/SBGFem2qPWo/the-klein-donation-text-of-robert.html

Stem Cell Agency Provides More Cost Detail on Future Plans

The California stem cell agency today clarified the size of the assumed "public investment" in its rough outline of its plan for future activities. 


In response to a query from the California Stem Cell Report, Don Gibbons, a spokesman for the agency, said,

"This hypothetical range of public investment ($50 million to $200 million) is thought of as a one-time investment, with hope of private investments in multiples of that with the fund recharging to some extent based on revenue."

Gibbons also said the agency did not want to indicate what it was prepared to pay for the study.  He said, 

 "We have not wanted to post the budget range because we want honest estimates of what folks think the budget should be rather than having them penciling estimates that max out the budget."


Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/rXqOoGO0Z0k/stem-cell-agency-provides-more-cost.html

California Stem Cell Agency Seeks Lobbyist Bids

The California stem cell agency has put
out a bid for a private lobbyist to watch out for its interests in
Sacramento, perhaps severing a longtime relationship with one of the
Capitol's more prestigious power brokers.
The $3 billion agency has had
a contract since 2005 with Nielsen Merksamer Parrinello Gross &
Leoni LLP
of Sacramento, which reported lobbying revenue last
year of more than $5 million. That made it one of the top revenue producers among California lobbyists.
The agency's contract is tiny, however.
It started at $49,900 for five months in 2005 on a no-bid contract with Nielsen, although the annual figure is now $49,999.  The agency's request this month for bids calls for a boost to $65,000 annually.
Nielsen Merksamer is very active in
health care lobbying. Its biotech/pharmaceutical clients have included Genentech, Merck &
Co
. and Pfizer. The firm also played a role in the drafting of and
campaign for Proposition 71 in 2004. In 2009, at the behest of
Robert Klein, then chairman of the agency, it produced a legal memo
that Klein used to help box in the agency governing board on taking a
position on the Little Hoover Commission report recommending major
changes at the enterprise.
The stem cell agency is one of the few
agencies that hires a private lobbyist, which has raised some
eyebrows. Nearly all agencies handle legislative relations
internally.
Deadline for bids is May 3.

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/0HfVYv0XVQg/california-stem-cell-agency-seeks.html

'Praise' for California Stem Cell Agency from Unlikely Corner

The California stem cell agency this
month received what some might consider a gesture of approval from a
longtime foe – LifeNews.com.

LifeNews is a site devoted to
anti-abortion efforts and information and is sharply opposed to research
involving human embryonic stem cells.
So it was with some surprise that we
read a tacit endorsement of recent CIRM activities in an April 22 piece written by Gene Tame out of Sacramento. It said the most recent
$32 million grant round from CIRM “demonstrates – again – where
the future of stem cell reserch lies.”
Tame wrote,

“CIRM has been steadily moving away
from its original mission to give preferential
treatment
 to funding for human embryonic stem cell research
(hESCR). Instead, after adopting a renewed
emphasis
 on translating research into clinical trials, CIRM
has more and more shifted the bulk of its grants towards funding
research utilizing adult stem cells and other alternatives to hESCR,
such as induced
pluripotent stem cells
 (iPSCs).”

Tame continued,

“(T)he lack, once again, of funding
for hESCR only serves to highlight how old and dated that approach to
finding treatments and cures increasingly seems.”

Tame is correct in his assertion that
the stem cell agency has moved a considerable distance from its
reason for being – research involving human embryonic stem cells.
In 2004, the ballot campaign to create the agency pitched voters hard
on hESC research and made no real mention of adult stem cells.
Instead, it focused on the threat from the Bush Administration with its
restrictions on hESC research, which have been lifted by the Obama
Administration.
.
In 2010, a study by a Georgia Tech
academic, Aaron Levine, reported that through 2009 only 18 percent of California's dollars went for grants that were "clearly" not eligible for federal funding under the Bush restrictions. 
At the date of the study, CIRM had not
publicly disclosed statistics on its funding of hESC research.
Today, however, its web site shows that only about 240 of the 595 awards that it has handed out are going for hESC research. CIRM has not made public the dollar value of
those 240 awards, but it has given away a total of $1.8 billion. (Following publication of this item, the agency told the California Stem Report that it has funded $458 million in hESC research.) 
A footnote: Levine was a member of the
blue-ribbon Institute of Medicine panel that recommended sweeping
changes at CIRM.  

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/hxYse4K5TpU/praise-for-california-stem-cell-agency.html

California Stem Cell Agency Budget Up 4.6 Percent, Topping $17 Million

During the past couple of years, the California stem cell agency has vastly improved the way it
budgets the relatively tiny amount it spends on operational expenses.

At one point a few years back, its
operational budget was often all but incoherent to the public and to
at least some members of its governing board. (See here, here and
here.) But times have changed. The process for its operational
budget, which amounts to about $17 million for the 2013-14 fiscal
year, is now more transparent and better organized.
The long overdue improvements can be
credited to the hiring of Matt Plunkett in December 2011 as its first
chief financial officer in its eight-year history, as well as the
efforts of CIRM directors Michael Goldberg and Marcy Feit. Goldberg,
a venture capitalist, is chairman of the board's Finance Subcommittee
and Feit, CEO of Valley Healthcare in Pleasanton, Ca., is vice chair. Plunkett, however,
left the agency suddenly last summer and the agency has no plans to
replace him. CIRM Chairman J.T. Thomas says Plunkett put new
financial systems in place that can be operated without a CFO.
Interested readers can get a glimpse of
what is upcoming for CIRM spending beginning in July in documents prepared for the Monday meeting of the governing board's Finance
Subcommittee meeting. The agenda, however, lacks a much-needed
explanation and justification for the spending. All that is presented
now for the public are raw numbers and a PowerPoint presentation,
which is no substitute for a nuanced, written overview.
Nonetheless, here are the basics. The
budget proposed for 2013-14 stands at $17.4 million, up 4.6 percent, according to California Stem Cell Report calculations, or $771,000 from forecast expenditures for the current year. The
budget represents the cost of overseeing $1.8 billion in grants and
loans and preparing new proposals and reviews of applications for
hundreds of millions of dollars in additional awards.
The largest budget component is for
personnel – $12.1 million, up from $10.7 million. Second largest
is outside contracting at $2 million, down from $2.9 million for the
current year, continuing a trend away from outside contracts, which
once were burgeoning.
One interesting area includes “reviews,
meetings and workshops,”- which are expected to cost $1.8 million
this year. Next year, they are budgeted for $2 million. Some might
look askance at those sorts of expenditures for “meetings.”
However, that includes the fees and expenses for scientific reviewers
for multi-day meetings in the San Francisco area, which is a high
cost area, and other large gatherings. However, the figure does not
include travel for reviewers, who come from out of the state and even
from overseas.
Examples of the meeting costs include a
three-day grant review session last September at the Claremont Hotel
in Oakland that cost $44,019. A two-day meeting at the same hotel for
the 29-member CIRM governing board cost $34,424. (These figures and others involving outside contracts can be found on the agenda of the
board's Governance Subcommittee meeting April 10.)
The agency also dissected the budget
from different perspectives on expenditures. The spending plan
includes $2.0 million for the office of Chairman Thomas and $1.6
million for the office of President Alan Trounson. Comparable
figures for actual spending this fiscal year were not provided,
however, by CIRM for the Finance Subcommittee meeting. The size of
the chairman's budget reflects the controversial dual executive nature of management at CIRM, which has come under repeated
criticism, including from the recent blue-ribbon report by the
Institute of Medicine
.. However, the arrangement is locked into state
law as the result of the ballot measure, Proposition 71, that created
the stem cell agency in 2004.
Legal expenses are budgeted at $2.2
million with public relations and communications running slightly
more than $1 million. The scientific office, as one might expect,
consumes much larger amounts, with basic research, translational
research, grants review and grants administration budgeted at $4.7
million. The development side of the scientific office, which
focuses on pre–clinical and clinical research, is slated for $3.4
million. The agency did not offer comparable figures for the current
year.
Under Proposition 71, the agency can
legally spend only 6 percent of its $3 billion in bond funding for operational
expenses. At one time the agency had a 50-person staff cap, but that
was altered several years ago by the legislature. The most recent
figures show it has 54 employees. However, this month's budget
documents did not list the number of staff for this year or next.
The stem cell agency also reported that
it expects to spend an additional $1 million a year for rent
beginning in 2015, when a free rent deal provided through the city of
San Francisco expires. The city put together a $18 million package to
attract the CIRM headquarters in a bidding war with other California
cities. The agency has never produced a public accounting of whether
it has received full value on the package.
The proposed budget is likely to be
approved by the Finance panel next week without significant changes
and then by the full board late in May.
The public can participate in the
Finance meeting at two locations in San Francisco one each in Irvine,
Pleasanton, La Jolla and Berkeley. Specific locations can be found onthe agenda.

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/4WgoKJd8w08/california-stem-cell-agency-budget-up.html

Deadline This October: California Stem Cell Agency Seeking Detailed Public-Private Plan for its Future

The $3 billion California stem cell
agency, which is currently scheduled to go out of business in a few
years, hopes to come up with a detailed plan by this fall for a novel
public-private arrangement that would extend its life.

The rough outlines of the proposal
assume $50 to $200 million in “public investment,” although it is
not clear whether that would be a one-time figure or an annual amount
from presumably the state budget or perhaps another state bond
measure. The concept includes additional private funding of a
yet-to-be-determined nature. (The agency later said that the public investment figures would be a one-time event.)
The broad sketch of the agency's latest
thinking about how to regenerate itself was found in an RFP posted four days ago on its website.
CIRM is seeking a consultant who would
flesh out the general concepts that it has offered. Work would
begin in mid June and be completed in four months, close to the ninth
anniversary of the agency, formally known as the California
Institute for Regenerative Medicine.
The RFP did not contain a figure
for the cost of the study, but said that the price would be part of
the criteria for evaluating bids.
CIRM was created in November 2004 when
California voters approved Proposition 71, a ballot initiative. Since
then it has awarded $1.8 billion to 595 recipients. It is funded by
money borrowed by the state (bonds), but cash for new grants is
scheduled to run out in 2017. Interests costs on the bonds raise the
total cost of the agency to roughly $6 billion.
CIRM said in the RFP that the plan for
its future should provide

“...an in-depth analysis of various
public-private funding models with potential to attract private
sector investment to, and facilitate further development of the most
promising CIRM-supported research projects; and recommend a single
preferred approach for achieving this goal, complete with details
relating to the recommended structure and an operational plan.”

The RFP also contained a just-released,
$31,750 study by CBT Advisors of Cambridge, Mass, that examined
mechanisms for financing translational research, which is the key
focus nowadays at the stem cell agency. Such research is aimed at
pushing laboratory findings into the marketplace.
Among other things, the CBT report,
whose lead author was Steve Dickman, said,

“The nature of CIRM as a state agency
is perhaps the biggest weak point (and) has to be addressed politically
and cleared up as soon as possible or raising money will be
unnecessarily challenging.”

The CBT study did not address how that
might be done, which could be a considerable task. Proposition 71
modified the state constitution and state law and can be altered only
by a super, super majority vote of the legislature or by another
ballot initiative.
California is the first state to
provide billions for stem cell research by using borrowed money. It
also is unique in California state government in that its funding
flows directly to the agency and cannot be altered by the governor or
the legislature.
Translating all that into some sort of
public-private arrangement would be novel among state government
departments and could well require legislative or voter approval.
The California Stem Cell Report has
queried the agency concerning the frequency of the assumed “public
investment” and CIRM's budget for the RFP. We will report that
information when we receive it.  (The agency later declined to disclose what it was prepared to pay for the study.)

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/bdJQjlhAoPM/deadline-this-october-california-stem.html

StemCells, Inc., Nails Down Controversial, $19 Million Award from California Stem Cell Agency

The stock price of StemCells, Inc.,
price today jumped as much as 9 percent after the company disclosed
it had finally concluded an agreement with the California stem cell
agency for a $19.3 million forgivable loan for research twice rejected by the agency's scientific reviewers..

The stem cell agency governing board seven months ago approved the loan to the Newark, Ca., firm. But the
cash was withheld until the financially strapped company could
demonstrate that it could match the size of the loan, as promised in
its application.
The StemCells, Inc., (SCI) application
was nixed two times in 2012 by the agency's scientific reviewers who gave it a
score of 61. In a controversial move, the 29-member board approved the award in early September on a 7-5 vote after former agency
chairman Robert Klein intervened publicly on behalf of the firm. It was the first time that Klein had lobbied the board publicly on behalf of an application. It was also the first time that the board
approved an application that was rejected twice by its reviewers, a
panel of internationally recognized stem cell scientists.
In a press release, Martin McGlynn,
CEO of StemCells, Inc., said,

"With CIRM's support, we are now
able to lay the groundwork that could result in the world's first
neural stem cell trial in Alzheimer's patients."

Both the company and the $3 billion
state research agency were tight-lipped about the nature of the
matching funds from the company, which reported losses of $28.5
million in 2012 on revenues of $1.4 million.
In a brief response to questions from the
California Stem Cell Report, McGlynn said, 

 “At this time, we
do not intend to elaborate any further on the contents of our press
releases or public filings pertaining to the SVB (Silicon Valley Bank) or CIRM(the stem cell agency) loans.”

Earlier this week, the company reported receiving a $10 million loan from Silicon Valley Bank. Both McGlynn
and the stem cell agency did not answer a question about whether
those funds are being used to back the award from California
taxpayers.
The agency confirmed that the firm was
providing $19.3 million in matching resources. But Kevin McCormack,
senior director of public communications, did not provide any
specifics on the nature of the match. He only said,

“The matching  requires
them to demonstrate they have enough funds necessary to
fund SCI’s share going forward as well as their own
operations and other commitments.”

The award was originally for $20
million. We have queried the agency about the smaller figure
announced today.
The company's stock price rose as high as $1.87 earlier today after closing at $1.71 yesterday. It stood at
$1.77 at the time of this writing. Its 52 week high is $2.67, and its
52 week low is $0.59. The loan from Silicon Valley Bank gives the
bank warrants to purchase 293,531 shares of the company at $1.70 over
the next 10 years.
The 10-year loan from CIRM is low risk for the
company, which said its “obligation to repay the loan will be
contingent upon the success” of the research. If a product is
developed, it will take years before it could hit the market.
The award to StemCells, Inc., put
the stem cell agency in a touchy situation involving the company's decision last month to reject an additional $20 million award from
the agency.( It was the first time a recipient has rejected an award.) Neither the company nor the agency would give a reason for
the rejection of the loan for a spinal injury project . However, the
award also required a $20 million match, which undoubtedly tested the company's resources.
The spinal injury application was
scored at 79 by agency reviewers and was routinely approved by the
board. With its withdrawal by the company, the agency, which prides
itself on funding only the best science, was left supporting research
(StemCells, Inc.'s Alzheimer's project) judged significantly inferior
by reviewers with its score of 61.
In response to a question about that
situation, CIRM's McCormack said,

“Our goal is to always fund the best,
most promising science. This is not the first time that our board has
voted to fund a project that the Grants Review Group had not
recommended (this has happened in around 2% of cases) The board did
so for a number of reasons, not the least of which is that this was
the first disease team application that had a goal of  moving a
promising stem cell therapy for Alzheimer's towards clinical
trials.”

The round in question, however, had another application dealing with Alzheimer's which was scored at 63,
two points higher than the one from StemCells, Inc. Reviewers also did not recommend funding that application.
The action last September by the
agency board came only after it publicly said the funds would not be
distributed until the StemCells, Inc., could show it could provide
the match, still another first for the agency.
The award triggered a column in
the Los Angeles Times by Pulitzer Prize winning writer Michael
Hiltzik
, who said in October that  the
process was “redolent of cronyism.”
 He said a “charmed
relationship” existed among StemCells, Inc., its “powerful
friends” and the stem cell agency.
StemCells, Inc., was founded by
Stanford researcher Irv Weissman, who was a major fundraiser for
Proposition 71, which created the stem cell agency in 2004. Klein
headed the ballot campaign, which spent more than $30 million to win
voter approval. Weissman sits on board of directors of StemCells,
Inc., and holds 124,608 shares in the firm, including 8,630 he reported this month receiving.

Source:
http://feedproxy.google.com/~r/blogspot/uqpFc/~3/34J6wy7wpLY/stemcells-inc-nails-down-controversial.html