Creativity, commitment and capital

Back in November of 2004, Californians went to the polls and overwhelmingly approved Proposition 71, the state’s stem cell initiative. Almost immediately, minority opponents began filing a lengthy stream of lawsuits designed to obstruct the voters’ mandate. One by one, those lawsuits have either been dismissed or failed at trial. Appeals of those rulings, re-filings of dismissed cases and new litigation have clogged efforts to fund the $3 billion for research, to be generated from the sale of bonds. The voters’ mandate became mired in a litigious morass.

The implementation of California’s initiative has been delayed by almost two years now - two years in which we could have moved closer to unlocking the potential power of embryonic stem cells to heal and cure. But time is unforgiving. Once lost it cannot be recovered. And it appeared that litigation would continue for at least another year or two. Those committed to the cause knew that something had to be done to mitigate the delay tactics.

Overcoming the delay tactics required a combination of creativity, commitment and, of course, capital. The California Institute for Regenerative Medicine (CIRM) had a stroke of genius. They devised a financial mechanism to acquire the funds now. They issued notes - they really took out loans - but with a unique twist: If for some reason the issuance of the bonds was successfully blocked in court, the loans would convert to donations and would never have to be repaid. Of course, if the opposition eventually lost interest or exhausted all legal options, then the bonds would be issued and the first funds would be used to repay the loans, known as Bond Anticipation Notes or “BAN’s.” All they needed was a group of “investors” with enough commitment to embryonic stem cell research to loan millions of dollars, and to do so without collateral and with absolutely no guarantee of ever being repaid.

And who would make loans with such ridiculous terms? Without collateral? Without any guarantee of repayment? You’d be surprised how quickly good people stepped forward. Here’s the initial list:

That makes a first round total $14 million and more is on the way. According to Robert N. Klein, chairman of the Independent Citizens’ Oversight Committee (ICOC), the CIRM governing board, “CIRM is currently processing another $32 million of commitments with foundations to lift the institute beyond the reach of the current litigation and to begin an additional round of funding for scientific and medical research.”

This measure, both historic and heroic, was announced in San Francisco just yesterday to a crowd frenzied by the great news. And how will the first funding be used? Our friend and colleague stem cell advocate, Don Reed, as proud and giddy as a new father, answered with a single joyful sentence: “For training grants that will pay for the first systematically trained wave of stem cell scientists in the world!”

Don, you see, is vitally committed to California’s stem cell initiative, as referenced in previous editorials. Though the ICOC approved training grant applications back in September of 2005, none could be awarded due to the litigation mentioned earlier. But now the tide has turned.

Three distinct award categories will bankroll 169 trainees in programs dispersed among both small and large institutions throughout California:

Comprehensive training programs will educate scholars at the pre-doctoral, post-doctoral and clinical levels. A Type I institutional grant will support up to 16 CIRM Scholars and operate with a budget up to $1.25 million annually.

Intermediate training programs will offer training at two of the three levels of education mentioned above. Type II grants support up to ten CIRM Scholars at a single institution with a budget up to $800,000.

Specialized training programs will fund up to six CIRM Scholars at up to $500,000 total.

Customized to leverage the unique strengths of individual California research institutions, the CIRM Training Programs will educate fellows from a variety of scientific backgrounds including computation and molecular biology, nanotechnology and clinical medicine.

All programs are required to provide at least one course in stem cell biology and disease as well as a course in the social, legal and ethical implications of stem cell research. The initial funding has been allocated as follows:

California’s pioneering spirit appears alive and well in stem cell research. CIRM’s fortitude and commitment to success is a testament to what can be accomplished when cause, competence and compassion converge. Moreover, their relentless efforts serve to establish the path to seek treatments and cures for insidious diseases and injuries that ravage humanity. Diseases, of course, that know no state borders.

Californians’ efforts this week can manifest to profoundly improve the lives of patients everywhere. So no matter where we happen to be located, we owe special recognition, acknowledgement and gratitude to Californians, not only for their creativity, commitment and capital, but perhaps most importantly, for their leadership.

On behalf of grateful supporters of stem cell research everywhere, we at the Stem Cell Page humbly say:

Thank you, California, for lighting the path for the rest of us.

Institution	Pre-Doctoral	Post-Doctoral	Clinical	1st Year Budget
Burnham Institute	0	6	0	$445,500
California Institute of Technology	0	10	0	690,608
Children’s Hospital Los Angeles	0	7	3	784,006
Scripps Research Institute	3	3	0	347,160
Stanford University	6	5	5	1,221,694
The J. Gladstone Institutes	0	7	3	799,080
The Salk Institute for Biological Studies	0	6	0	481,010
University of California, Berkeley	6	4	2	815,990
University of California, Davis	4	4	4	896,082
University of California, Irvine	8	4	0	674,482
University of California, Los Angeles	5	5	6	1,231,802
University of California, San Diego	6	4	6	1,203,207
University of California, San Francisco	6	6	4	1,152,431
University of California, Santa Barbara	2	4	0	393,091
University of California, Santa Cruz	3	3	0	374,730
University of Southern California	5	2	2	601,379
TOTAL	54	80	35	$12,112,252