$31 Million Stem Cell Training Proposal Defended

Officials at the California state college system have filed a sweeping defense of its appeal for $31 million from CIRM to train thousands of persons to work in the stem cell industry.

The California state university system as well as the California community college system advanced the proposal at the August meeting of the CIRM Oversight Committee, whose members raised a series of questions.

Supporters of the plan compiled a detailed, 24-page response, outlining the need for training a diverse workforce and citing CIRM's own strategic plan in support. The response and the proposal are up for consideration Wednesday at the Oversight Committee meeting in San Diego.

No competing proposals to provide the training are currently before CIRM.

Time to Tap Technology for Outreach

As such things go at the California stem cell agency, it was a fairly technical meeting. No great issues, no wrestling with egg donation matters or criteria for giving away $200 million.

The subject was the application procedures for laboratory construction grants. The audience was the men and women who must fill out the complex documents – "interested parties," as they are called.

But the conference-call session on Sept. 21 has some implications for CIRM and its goals of educating the public about its activities as well as stem cell research in general(mentioned by incoming CIRM president Alan Trounson on Sept. 24).

John M. Simpson(photo above), longtime follower of CIRM affairs and stem cell project director for the Foundation for Taxpayer and Consumers Rights, listened in on the meeting. We asked him for this thoughts on the event. Here is what he said:

"(The) 'interested parties' meeting was a valuable session allowing potential applicants to ask specific questions about the application process. CIRM needs to do whatever it can to engage as many people who are affected by their decisions in the process as possible.

"California is a big state and CIRM needs to use technology to promote involvement. So far as I know this was the first conference call where participants were invited to phone in directly themselves. Usually CIRM teleconferences have required a participant to go to a particular site created for the convenience of an ICOC board member to be involved.

"(The) dial-in from wherever an interested party was located worked great. It was well worth the cost and can serve as a model for future sessions.

"CIRM should put itself on the cutting edge where it claims to be and tap technology to a greater extent. For instance, it should broadcast all ICOC(Oversight Committee) meetings and (other) committee meetings on the Internet. Many city councils around the state have already figured out how to do this. CIRM and the ICOC need to get with the times. They should even consider a page on Facebook and Myspace that links back to CIRM's own website."

We might add that Internet webcasting would also fit in with Trounson's desire to reach out nationally and internationally with the CIRM effort.

Looking For Ways to Avoid the Stem Cell Egg Problem

A $25 million proposal to develop new lines of pluripotent human stem cells, including ones that do not require the use of human embryos or eggs, will come before the Oversight Committee of the California stem cell agency next week in San Diego.

The plan calls for as many as 16 research grants for periods of three years. Funding could come as early as next spring with the release of RFAs as early as this fall.

A CIRM staff report said,

"The ability to derive pluripotent stem cells from new sources will enable scientists to generate disease-specific and genotype-specific cells of many phenotypes. Such cells have great value for drug discovery and understanding specific disease mechanisms. Importantly, methods that will not require the donation or use of either human embryos or eggs will significantly reduce the moral and ethical concerns that surround methods currently in use. Finally, new methods of producing pluripotent stem cells will be particularly important because it may be difficult to obtain excess embryos from many racial groups.

"This RFA will support the generation of new lines of pluripotent human stem cells including:

"• new clinical grade lines of hESCs and other pluripotent human stem cells suitable for future clinical use or other biomedical applications

"• new hESC lines generated using improved methods that may be optimal for differentiation along selective lineages or for studies of disease

"• disease-specific, pluripotent stem cell lines to support the study of the effects of genetic variation on disease development and response to treatment

"• the discovery and implementation of alternative methods for generating pluripotent human cells"

The report also said,

"Awards will be made to support two areas of derivation: the generation of new human lines using excess embryos from in vitro fertilization, and derivations from other sources using new and novel methods."

Lockyer Beats Stem Cell Bond Drum

The California state treasurer's office has generated more publicity for the sale of the state's first-ever stem cell bonds next Thursday with at least one site urging San Franciscans to buy to support a local enterprise.

Tom Dresslar, communications director for Treasurer Bill Lockyer(photo at right), sent out a news advisory Thursday pointing out the sale – a "reminder" from Lockyer. The reminder said,

"California is one week away from making the largest-ever investment in human embryonic stem cell research in the nation and, we believe, the world."

Lockyer also noted,

"The $200 million investment will place California in the forefront of global research using human embryonic stem cells, considered by many experts to hold more potential to help develop treatments and cures for diseases than other types of human or animal stem cells. And it's just a fraction of the $3 billion in bonds authorized by Proposition 71. By contrast, the National Institute of Health since the 2002 fiscal year has funded a total of $131 million in human embryonic stem cell research."

The total bond issue is for $250 million, but about $45-50 million will go to pay transaction costs and to retire the bond anticipation notes that were sold to private philanthropists to help fund the California stem cell agency while it battled legal challenges. CIRM must still repay the state for something like $150 million in loans that helped to provide interim financing. The agency has roughly $1 billion in current bonding capacity that it can use soon. The likelihood is that another big bond sale will come up early next year.

Individual investors have until Oct. 3 to buy the bonds. They get first crack at them because of a new program that Lockyer started this year to make state bonds easily available to the general public. Minimum purchase is $5,000. The bond dividends are federally taxable but exempt from California state taxes. One would think that patient advocate groups might want to spread the word.

The San Francisco Business Times put together a brief piece on Lockyer's reminder. Jim Christie of Reuters also wrote an article. A blog called Sam Spade's San Francisco, the city where CIRM is headquartered, said that the bonds are one of the "best places" for San Franciscans to make an investment.

"The money you invest stays right here in San Francisco and is put to work funding the most cutting-edge medical research on the planet."

Correction

Tom Dresslar of the state treasurer's office points out that the figures for transaction costs are the estimates for actual costs on the Oct. 4 stem cell bond sale -- not bench marks.

The Cost of 'Lubricants' for Stem Cell Financing

So the California stem cell agency wants a little loan? Maybe not so little. Only a piddling $250 million.

Well, to do that sort of business doesn't involve chump change. First there is the interest, let's say about another $250 million, give or take roughly $10 to $20 million plus or minus. The actual interest cost will not be known until Oct. 5, the day after the stem cell bond sale. (For those of you who have been locked into a microscope for decades, a bond is a loan. California says give us $250 million, and we will pay you back later with interest.)

Then there is the lubricant to make the financial wheels turn smoothly. That's roughly another $1.6 million. That may seem like a lot but it is less than what CIRM estimated a little while back in its strategic plan. That document calculated bond issuance costs at roughly 0.08 percent of the bond amount. In other words, about $2 million for a $250 million bond sale.

We asked Tom Dresslar, a spokesman for the state treasurer's office, which handles the bond sales, about the transaction costs of doing such business. He told us that final figures for the stem cell bond sale will not be available until after it takes place, he provided us with estimates of the costs on the October sale.

Here is his breakdown:

"Total -- Approximately $1.6 million

"Bond counsel and co-counsel -- $175,000

"Tax counsel -- $117,000

"Rating agencies -- $142,000

"Underwriting fees -- $818,000

"Various other costs comprise the balance."

Obviously it would be cheaper to fund stem cell research straight from tax revenues, with no borrowing, because there would be no interest or transaction costs. But that would mean navigating – ANNUALLY -- the treacherous shoals of the legislature – not to mention the governor's office. And the research would have to compete against demands for money for schools, police, firefighters and much, much more. It doesn't take a political wizard to figure out who wins in that contest.

(Editor's note: An earlier version of this item described the transaction costs as benchmarks for a $250 million bond sale. They are actually estimates of the costs on the stem cell bond sale.

Investing in Stem Cell Bonds

Re our earlier piece on buying California's stem cell bonds, Tom Dresslar, spokesman for the state treasurer's office, points out that the minimum buy-in is $5,000. Don't forget you need permission from the treasurer's office if you want to buy more than $1 million. And as always, do your investment homework before you buy anything.

More Openness Emerging at CIRM?

The California stem cell agency has long concealed the identities of applicants for millions of dollars in grants even when the applicants are such public entities as the University of California.

But there are signs of changing sentiment on CIRM's Oversight Committee. At the board's August meeting, some members indicated that they favored disclosing the names of institutional applicants for $222 million in lab grants and at least some portion of their applications.

For example, Oversight Committee member Francisco Prieto, a Sacramento physician, asked his fellow committee members,

"Why could we not release the names of the applying institutions and the outlines of the proposals without actually opening up the actual review? I understand that in the review of the RFAs and within the meetings that there are comments made about strengths and weaknesses of individual investigators and teams and things that could affect people's careers, but the institutions and the outlines don't have any personal interest. "

In response, Chairman Robert Klein said the matter would be brought up at next week's Oversight Committee meeting in San Diego. He said,

"I personally think that we have an opportunity here to have some more disclosure, that while protecting confidential information, proprietary information, personnel information of people that are being hired, etc."

Later David Kessler, an Oversight Committee member and dean of the UC San Francisco School of Medicine, indicated he was sympathetic to providing the names and some information concerning the institutions' applications.

Kessler made his comments after John M. Simpson, stem cell project director of the watch dog group, the Foundation for Taxpayer and Consumers Rights, noted that lab grant process has two steps. The first is a closed- door scientific review of applications from institutions, whose names are also secret. The second is public review of the actual construction proposal with the names disclosed.

Simpson said the board was

"...setting up a procedure by which, as I see it right now, you cannot risk the embarrassment of a university because it can't do science, but you can embarrass them because they don't know how to build a building. That just doesn't make sense. It doesn't serve the scientists, nor the architects, especially the public at large."

Last month, the California Stem Cell Report called on CIRM directors to make more information public concerning the identity and proposals of applicants for the lab grants.

Stem Cell Snippets: Hanky-Panky to Jobs for Those Love Long Hours

Enviros Against Stem Cell Lab/Classroom Building -- An activist group and the city of Santa Cruz have blocked construction of an $80 million facility at UC Santa Cruz that would house stem cell research activities. A judge halted the project for environmental reasons. The four-story facility would include stem cell labs and service nearly 1,400-science students.

Scientific Integrity – The California stem cell agency has based many of its policies and rules on assumptions of nearly universal scientific integrity. Glenn McGee(see photo), writing in The Scientist and on the blog of the American Journal of Bioethics, indirectly questions those assumptions. He cites studies that show widespread hanky-panky in the authorship of peer-reviewed pieces, particularly in cases where senior researchers claim authorship even when they are marginally involved. McGee also has suggestions for reform. Interestingly, the entry point for his article is a matter that figured in the controversy over approval of a California stem cell agency grant to a subsidiary of the CHA Health Systems of South Korea.

Yolo Stem Cell Land Deal – Land developer Angelo Tsakopolous has shelved his land development deal that would have also established a stem cell research center in Northern California near UC Davis and Sacramento. Jeff Raimundo, a spokesman for Tsakopolous, told the California Stem Cell Report that the controversial proposal has been put off. California stem cell Chairman Robert Klein lobbied local government officials on behalf of the proposal, but they shied away from the effort. The concept of the plan was also supported by the International Stem Society for Stem Cell Research. Tsakopolous is a persistent man, however, and his proposal could well surface again in one form or another.

Stem Cell Lab Grants – On Oct. 2, the California stem cell agency will consider rules concerning administration of $222 million in grants for stem cell lab construction. The Facilities Working Group will take up the proposal prior to consideration by the CIRM Oversight Committee the next day.

NAS Stem Cell Meeting in California – Coming up Oct. 8-9 in Irvine, Ca., is a National Academy of Sciences conference called "Therapeutic Cloning: Where Do We Go From Here?" A host of top flight scientists are listed as speakers. The session will address such questions as sources of eggs and alternative methods of creating pluripotent cells.

Looking for Work? -- If you are interested in working across the street from the home field of the San Francisco Giants baseball team, CIRM is looking for a few good men and women. Jobs available at the agency include associate legal counsel, grants management specialist, paralegal and scientific officers.. Long hours are guaranteed. (CIRM headquarters is near the Giants field.)

Trounson Expands on His International Perspective

The new president of the California stem cell agency, Alan Trounson, is expressing a strong interest in engaging scientists elsewhere in the world and nation in the state's $3 billion research program, although he said such an effort may require funding from outside the agency.

In response to questions from the California Stem Cell Report, the Australian scientist (see photo) elaborated via email on his statements at the time of his selection as the head of the world's largest single funding source for human embryonic stem cell research.

Trounson had said his new assignment at CIRM provided an opportunity to engage internationally with other groups to avoid duplication of effort and speed development of cures. However, state law concerning CIRM requires virtually all of its efforts to be focused within California, requirements that earlier this year surfaced in connection with approval of a $2.6 million research grant to a non-profit, Los Angeles subsidiary of a South Korean organization, CHA Health Systems.

The CHA grant is still apparently under an administrative compliance review along with many others approved at the same time in March. The grant was not mentioned in the questions we submitted to Trounson nor did he speak specifically to it. We asked him only to elaborate on his statement concerning efforts with other nations and states. Trounson said,

"I would like to engage research groups working in other states and particular countries in collaborations with Californian scientists and clinicians. This might be achieved by having jointly funded workshops, study programs, scientific exchanges, research projects and clinical trials. I need to find out whether CIRM funds can be used in this way or whether we need to find other mechanisms to do this. The aim is to avoid duplication and accelerate the application of discoveries into the clinic - this is the primary outcome sought and needed by Californians."

Other questions and Trounson's responses:

CSCR: What are the three greatest challenges facing you at CIRM?

Trounson:
"1. Integrating the pipeline of stem cell discovery, translation and application in the clinic
"2. Demonstration of therapeutic benefit in a variety of applications
"3. Achieving a full comprehension by education, of the nature and potential benefits of stem cells throughout the whole community."

CSCR: Working in California state government also means dealing with open records and open meeting laws which sometimes have given pause to others new to such requirements. What is your comfort level with such laws?

Trounson: "Transparency is a simpler form of conducting an activity such as that involving the CIRM, where the entire community has an interest. I welcome the open format."

CSCR: Other observations you feel are important?

"I need time to focus on and analyze the efficiency of delivery of the CIRM strategy and to format priorities for the CIRM building on the very sound base achieved by the founders."

Attention Stem 'Cellists:' Buy Your Bonds Now

Supporters of human embryonic stem cell research have a chance to put their money where their rhetoric is early next month and help fund California's ambitious effort at pushing the field forward.

On Oct. 4, the state of California has scheduled its first ever bond sale for the California stem cell agency – a $250 million proposition that individual investors would have been hard-pressed to take part in, at least until this year.

State Treasurer Bill Lockyer, however, has set up a procedure to let smaller, individual investors buy California state bonds in the amounts that mom-and-pop investors are comfortable with. Typically in the past, institutional investors would buy huge chunks of state bonds, and the treasurer would not bother with what he regarded as nickel-and-dime sales, known officially as "retail" accounts.

Buying the bonds does take a little homework, however. You must set up a brokerage account, if you do not already have one. You should also check with your broker soon to be sure he or she sure is on board and can send in the orders well ahead of Oct. 4. There are restrictions: You generally can't buy more than $1 million worth of the bonds without seeking permission from the state. You can read all the details and deadlines here.

State bonds pay a dividend that will be determined later, but they can be described as undoubtedly a safer investment than putting money into a stem cell or biotech company. After all, California's millions of taxpayers stand behind the bonds.

And you might even get a certificate suitable for framing that you could post on your front door.

Ensuring a Stem Cell Future: CIRM's Proposed Biotech Loan Program

The California stem cell agency is preparing to take the first step towards setting up a loan program that would help to extend its life well beyond 10 years and solve some of the sticky problems associated with sharing the potential wealth created by its grants.

The Oversight Committee for the $3 billion agency will meet Oct. 3 in San Diego to consider creation of a task force to develop a "biotech loan program." No details for the effort were available today on the CIRM web site, but the task force is likely to be similar to an intellectual property task force that drew up the standards for sharing potential gains from inventions that result from CIRM grants.

We have discussed the concept of a loan program on a couple of occasions with the chairman of CIRM, Robert Klein(photo above). He told us that it would be one way to assure that funding continues for stem cell research for some time. The effort would do so by generating income from interest charged on the loans. Klein noted that it is imperative to begin the program soon in order to generate cash that could presumably be reinvested in additional loans and, we speculate, in other financial instruments.

Intellectual property issues have bedeviled the grant program, generating controversy over the size of the state's potential royalties from stem cell inventions. Sharing-the-wealth questions are among the concerns that have surfaced in the California Legislature, and they are likely to surface again. Another contentious area revolves around sharing results of research with other scientists at low or no cost, a shibboleth of science. Profit-oriented researchers regard such requirements with skepticism.

A loan program could erase many of these IP issues because the return to the state would come from repayment of the loan – not royalties -- although other conditions obviously could be attached to lending.

A loan program also is linked to what is widely and wrongly believed to be the 10-year life span of the California stem cell program. No "sunset" provision exists in Prop. 71, although the 2004 debate about the ballot measure constantly referenced a 10-year period. The agency is limited to the issuance of $3 billion in bonds at a rate not to exceed $350 million a year, although it can carry over amounts not issued from year to year. In addition, CIRM enjoys a special status among state agencies. It can accept private funds, much as a nonprofit charity does, including those from fundraisers. The only other state department that we know of that has a similar capability is the Fair Political Practices Commission, another agency created by a ballot measure. There could be others, however. One possibility concerning financing for CIRM beyond 10 years could involve earmarking donations to the agency for loans to industry.

A loan program also carries with it a series of other interesting questions such as:

How does the agency establish the credit-worthiness and perform due diligence on applicants? It has no expertise in this area. Presumably it would rely on outside contractors.

But where does it find even an oversight staff for a lending and investment program that could run into hundreds of millions of dollars? The agency is limited by law to 50 employees. It currently has 26. Even at 50, some Oversight Committee members believe it will be understaffed for its existing programs. Contracting out such critical functions also involves difficult conflict-of interest questions, since outside firms do not have to file public statements of their economic interests.

How does CIRM deal with defaults? Does it take a share of the company in return, which may be worth nothing or even less than nothing(i.e. loaded with unpayable debt)? Does it sue for payment? The biotech industry currently consists primarily of companies that are hard-pressed to maintain their own financial viability.

Presumably those questions and many more will be addressed by the new biotech task force.

Klein has had experience in creating and running state lending programs. He served for six years as a member of the board of the multi-billion dollar California Housing Financing Agency. Klein says he authored the legislation creating the agency when he was an aide in the legislature. Klein notes his own business, a real estate investment banking firm, has never obtained any financing from the housing agency.

Because of his background, Klein is likely to be even more immersed in the loan program than he is in other agency matters, and will probably seek additional personal staff from the 50 allotted to the agency.

To learn about other matters on the Oct. 3 Oversight Committee agenda, see the item below.

CIRM October Meeting: Disease Teams, Biotech Loan Program and New Stem Cell Lines

Directors of the California stem cell agency always seem to have more than they can do in their meetings, and October's seems to be no exception.

Creation of a new $122 million disease team effort and a biotech loan program (see above) that could give CIRM life in perpetuity are among the matters to be discussed in San Diego at the Oct. 3 meeting of the Oversight Committee. That is not to mention rules for the $222 million lab grant program and consideration of a concept for grants for development of new cell lines.

Also on the agenda is creation of a Finance Subcommittee, which is likely to generate more work for Oversight Committee members, and may be linked to developing ways for funding CIRM after it runs out of its $3 billion in state bonds. The $30 million training proposal from California's state and community colleges is also up for discussion.

No details of any of the new proposals are yet available. Presumably more information will be forthcoming well in advance of the meeting so that the important constituencies affected by the matters will have time to respond. The agenda itself was not yet posted on the CIRM web site at the time of this writing, but presumably will be on line on Monday.

'Little Rooms, Big Dreams'

Patient advocate Don Reed has written an interesting mini-profile of Stanford stem cell researcher Renee Reijo-Pera, chronicling her journey from secretarial chores and "not-so-good" college grades to her current position.

Reijo-Pera (see photo) was one of six children and the first in her family to graduate from college, Reed reported on his blog, stemcellbattles.com. She studied business administration in college until her junior year, when she switched to sciences following an exposure to a human biology course aimed at non-science majors.

She cited the influence of a particular instructor as providing the impetus, which makes one wonder about the emphasis on research to the neglect of teaching at many universities. All it takes is a handful of folks like Reijo-Pera to make a bigger difference than a wheelbarrow of research papers involving relative trivia, although I may be overstating the case a bit.

Reed was leaving his interview with Reijo-Pera when he commented on the small size of the rooms in her research complex.

"Little rooms, big dreams," she replied.

You can find Reed's piece at stemcellbattles.com. Look for the Sept. 21 item in the archives if it doesn't pop up immediately.

More on Alan 'Big Fish' Trounson: Spin Doctors 'Wrong'

Here is how Constance Holden of ScienceNow put it:

"California has landed one of the biggest fish in the Pacific to head its stem cell venture."

She continued:

"'Things are booming in California right now,' says former CIRM President Zach Hall, who notes that Trounson's varied experience makes him "almost uniquely qualified for the job."

Holden wrote:

"Those who know Trounson say his personal skills should smooth the way for cooperation with CIRM's high-profile board chair Robert Klein, who has more than once ruffled colleagues with his propensity to take unilateral actions. "Alan is charming, ... a lovely human being," says stem cell researcher Evan Snyder of the Burnham Institute for Medical Research in San Diego, California. Researcher John Gearhart of Johns Hopkins Medical Institutions in Baltimore, Maryland, says he is 'politically savvy,' in addition to having a 'very broad base of knowledge.'

"Trounson is one of several major stem cell scientists whom Australia has lost to the United States lately, including Martin Pera, now at the University of Southern California in Los Angeles, and Paul Simmons, now at the University of Texas, Houston. Trounson himself has made it clear he regards the CIRM presidency as the capstone of his career. "This is the biggest job in stem cells in the world," he told the Australian paper The Sunday Age."

David Serrano Sewell, a member of the CIRM Oversight Committee, told the California Stem Cell Report, in response to a query:

"Alan is a unique person, he has the administrative and person skills needed for this job. And, he's a top sciencetist. We are lucky to have him. Second, the spin doctors could not resist from speculating that the governance structure and Bob were some road block to selecting a President. Wrong. ... They were hoping for this to be the case, and it was not. We found someone who is truly amazing. Enough said.

Market Conditions Delay Sale of Stem Cell Bonds

The sale of $250 million in California state bonds to finance human embryonic stem cell research has been postponed from Sept. 27 to Oct. 4 to see if market conditions improve, providing a "better deal" for the state's taxpayers.

At this point, the delay looks like a pretty good move given the Federal Reserve Board's reduction in interest rates.

The California Stem Cell Report Tuesday learned of the bond sale delay and queried the state treasurer's office, which handles the sale, about the reason.

Spokesman Tom Dressler replied, "We made a determination that if we hung in for another week, market conditions would give us as better deal for taxpayers."

What that means is that the bonds would require a lower interest rate to be sold to investors. And since the state must pay the interest, that translates to lower costs to taxpayers.

Also on Tuesday, Fitch Ratings announced that it rated the bonds at "A+," which is below the top rating and the result of the state's continuing state financial problems.

Fitch said the rating reflected the state's "broad, diverse and wealthy economy, moderate debt burden, and notable progress made to date reducing the structural imbalance remaining from the fiscal crisis earlier in this decade and beginning to rebuild its financial position. These strengths are offset by still significant near-term imbalances, the state's continued reliance on volatile capital gains revenues, including from the slowing residential real estate market, decelerating revenue growth and ongoing spending pressures in education, corrections and infrastructure."

Trounson, Air Bridges and Hot Water

Coverage and commentary continued to roll out today on the appointment of Alan Trounson as the new president of the agency that is the world's single largest source of funding for human embryonic stem cell research.

In the United States, one commentator who has been a strong critic of the California stem cell agency said Trounson "certainly brings a lot to the table." In Australia, California stem cell Chairman Robert Klein was quoted as saying he envisions "an air bridge from Australia to California."

First the commentary from Jesse Reynolds of the Center for Genetics and Society in Oakland, Ca. Reynolds wrote on the center's blog, Biopolitical Times:

"(Trounson is) an accomplished scientist, businessman, and advocate - a diverse set of skills which will be critical for such a challenging post. Of course, the most important skill - the ability to juggle the numerous strong personalities and interests on the agency's board - is less visible from a CV."

Reynolds touched on the flap a few years ago involving Trounson and the rat video.

"As an advocate, Trounson got himself into hot water five years ago by misrepresenting the progress of embryonic stem cell research before the Australian Parliament. He showed MPs a video of a paralyzed rat that regained mobility after an injection of what he claimed were human embryonic stem cells. In fact, it had been treated with germ cells taken from a human embryo after 5 to 9 weeks of development. This caught the attention of the Prime Minister, who called Trounson's statements "very untidy" and ordered a review of a US$ 24 million grant.

Of all his public activities, I find Trounson's position on cloning-based stem cell research to the most interesting. He has repeatedly made skeptical statements (Reynolds has links to those) on the potential for the theoretical technique to produce cures, regularly citing its inefficiency and impracticality, particularly the need for many human eggs. Trounson has even called it a 'a non-event.'

But when actual limits on the practice are at stake, Trounson has changed his tune. During debates at the United Nations on a global ban on human cloning, he said that "the benefits of therapeutic cloning are really quite enormous." And when Australia was reviewing its three-year moratorium on research cloning, Trounson said, "This is really something that we can't ignore.... I think it's terribly important to make disease-specific stem cells. A lot of people think that we will see things happening to those cells that we wouldn't be able to predict if we're looking at patients with the full expression of the disease."

In Australia, Leigh Dayton, in a story on the Australian News Network, a web site involving a number of Australian newpspapers, had an interview with Klein,

"'I see an air bridge from Australia to California,' said Bob Klein, the driving force behind the establishment of the California Institute for Regenerative Medicine, the agency with the job of doling out up to $300 million a year for stem cell research. 'Hopefully, this will be the start of a tremendous international relationship.'

"Mr. Klein and Professor Trounson predicted their partnership would speed up the delivery of therapies from the laboratory to the clinic.

"'I see (his appointment) as a tremendous opportunity to be in the front line of a major revolution in medicine,' Professor Trounson said. 'This is the epicentre for stem cell research and therapies.'"

Fresh Comment

Marie Godfrey has posted a comment on the "Wired, Sheehy" item below.

Wired Story on Trounson; Sheehy Comments

Wired.com carried a story today by this writer on the appointment of Alan Trounson as the new president of the California stem cell agency. It included a portion of a response that we received from Jeff Sheehy, a member of the CIRM Oversight Committee, in response to questions concerning the presidential search process, whether many members of the ICOC had met face-to-face with Trounson and whether Trounson had been among the candidates from the very beginning.

Here is the complete response from Sheehy:

"Not sure if you mean the very, very beginning--I wasn't on Presidential search sub-com at that point, so I don't know the candidates who were in that mix. Many members of the ICOC have met him face to face, both through this process and also through other occasions, ie, as a fellow scientist at conferences or some other occasion/s in the past. Bob has met him, again, I don't have all of the details---though personally, I believe that his recent trip to the ISSCR conference in Australia played an essential and probably decisive role in this stellar recruitment. As for the process, I had felt that it would not be possible to find a candidate that fulfilled everyone's expectations. After the first interview, I was frankly stunned and delighted to realize that Dr. Trounson would either meet or exceed almost every expectation that we individually had for a candidate for this position--a world renowned stem cell researcher, significant management/administrative experience, significant private sector experience, significant translational experience, a clear well-articulated scientific vision, demonstrated leadership experience, experience with the public, media and political leaders, ability to position CIRM to realize its potential as a global engine for stem cell research and to develop and sustain the relationships with other nations' stem cell efforts in order to avoid wasteful duplication of effort and create (my least favorite word, but I don't have another) synergies between these efforts and CIRM's, and no issues around maintaining a lab. I'm sure I'm missing a couple of other points, but I think you get the gist. In short, we are fortunate to have him lead CIRM and I firmly believe that under his leadership, we will succeed in making a difference in the lives of patients and as Terri Somers put it in the SD Union Trib, it is a "coup" for California."

Reaction to Trounson: CIRM Management Issues to His Love of Learning

The appointment of Alan Trounson to head California's $3 billion stem cell agency is triggering more reaction today, ranging from curiosity about his Australian origins to the continuing structural and management issues at the fledgling institute.

Here are some samples:

David Hamilton, writing on VentureBeat.com, discussed the management problems. He said,

"...(T)he challenges CIRM still faces are significant, and it doesn’t help that Trounson apparently won’t even start his new job until the end of the year — and even then will likely work part-time while he winds down his involvement with his Monash laboratory. With all due respect to acting president Richard Murphy, it’s still likely to be a while before CIRM gets the steady hand on the tiller it appears to need so badly.

Monya Baker, news editor of NatureReports Stem Cells, wrote on The Niche, the stem cell blog of Nature magazine,

"One strength that has not been highlighted is Trounson’s potential to link US scientists with those in the Asia-Pacific region. He has been very active in efforts to found an Asian-Pacific Stem Cell Network, and quite vocal about the advantages that that region has for stem cell research. When meeting with leading stem-cell scientists from around the region in June, Trounson was emphatic in discussing the need for political champions.

"Trounson also has experience working successfully in a highly politicized environment. Though largely unnoticed in the US, Australian politicians and scientists launched a successful campaign to make somatic cell nuclear transfer legal."

Patient advocate Don Reed brought his unique perspective to the news in his Sept. 16 item on www.stemcellbattles.com, including how the announcement looked from a teleconference perspective. Reed noted that Trounson disclosed, in response to a question, that his Australian ancestors arrived there as a result of the British judicial system. Trounson said "he was descended from a convict, who had been jailed because of two overdue library books—and that he had inherited his ancestor’s love of learning.(see editor's note below)"

Larry Ebert, writing on his Ipbiz blog, has a discussion of patent and WARF issues related to Trounson.

(Editor's Note: John M. Simpson of the Foundation for Taxpayer and Consumers Rights, asked the light-hearted question about Trounson"s ancestor. After this item was first posted on this blog, Simpson said that Trounson said that his ancestor stole the books. Simpson said that Trounson also reported that "his ancestor had been 'trying to better himself'
and hoped that his genetic material had continued through to him...")