Text of Klein's Response to Questions Concerning His Advocacy on Rejected Grant Applications


Here is the text of Robert Klein's response today to the California Stem Cell Report concerning his appearance before the governing board of the California stem cell agency July 26, 2012. Klein, former chairman of the agency, real estate investment banker and attorney, promoted two applications seeking $20 million each from the agency. Both applications had been rejected by the agency's reviewers. Here is a link to an item on the subject.

"Dear David,
"You have posed two
questions related to my continuing role as a Patient Advocate in
contributing information to the Board of the California Institute for
Regenerative Medicine
, in an effort to optimize decisions on medical
and scientific grants and loans for research that could mitigate
and/or cure chronic diseases or injuries. 

"Q: Do you have any sort
of financial ties to StemCells Inc. or any of the individuals or
firms that would benefit from approval of those awards by the ICOC(the CIRM governing board)?
"A: I have no financial
interest in StemCells Inc. or any of the individuals or firms that
would benefit from approval of those awards by the ICOC. In fact, I
have no financial interest in any biomedical research company.

"Q: Do you think it is
appropriate for the former chairman of the ICOC to lobby that body on
behalf of awards to specific companies or individuals?
"A: First, it is
fundamental that the terms be defined to properly respond to your
question. A “Patient Advocate” is a member of a patient family or
a medical/scientific care /support group who advocates for medical
and scientific advances that might potentially mitigate and/or cure a
patient’s chronic disease or injury. A “Patient Advocate” is
not paid for his/her advocacy, unless they are staff members of a
non-profit institution dedicated to a specific disease or group of
diseases or injuries. 

"Second, a “lobbyist”
is a paid representative of a company or a for-profit institution(s)
with a financial interest in the outcome of a governmental decision. 

"I am serving as a
Patient Advocate in my presentations to the Board of the California
Institute for Regenerative Medicine. As the former Chairman of the
Board, I have a particular responsibility to contribute my background
knowledge and experience for the Board to consider, along with all
new information, in reaching their best decision. I hope other former
Board members, who possess a wealth of scientific, medical, and
institutional knowledge that can benefit the Board, would consider
the value they can contribute to future decisions. As Board terms
expire, it will be important not to lose that institutional knowledge
and medical/scientific expertise that has been built up over the last
seven plus years of the Agency’s existence. 

"In an outline format,
I would suggest the following areas where the knowledge of former
Board members can be especially valuable in optimizing the input for
Board decisions in the future. 

"A number of Board
members have participated in up to 20 or more Peer Review meetings,
some of which cover multiple days. Current grant or loan requests
represent the result of scientific and medical advancement that has
been intensely vetted in prior peer reviews; the information gained
in those peer reviews should not be lost, when a subsequent grant or
loan request – built on the earlier research outcomes – is
considered. Each peer review session has the benefit of different
specialists and scientists and/or biotech representatives with
unique backgrounds and areas of expertise. The value of the prior
contributions may be pivotal, in considering a later application,
developed from the earlier medical or research advances funded
through CIRM’s grants or loans. The current peer review,
scientific staff presentation, and Board expertise, is not the limit
of the Board’s information, in reaching the best current decision.
To the extent the Board can draw from prior peer reviews (unique
insights), prior scientific staff presentations, and prior Board
expertise, additional information that can enhance a potential
decision, the Board has the opportunity to optimize its decision
making process. This is particularly valuable, when there is a high
standard deviation – a substantial split – in the scoring
positions from the current peer review. 

"Beyond peer review
participation, Board members have intensely engaged in another 35
plus Working Group sessions on Facilities and Standards, in addition
to more than 70 Board meetings and over 125 Subcommittee meetings,
as of August 2012. Retiring Board members possess a treasury of
information on policy development, process, federal and state laws
and regulations, and the regulations of the agency, as well as in
depth information on research facilities and capabilities throughout
California, the nation, and the world. It takes a substantial length
of time for a new Board member to gain a comprehensive knowledge in
all of these areas and each Board member will develop unique
insights, which it would be a tragedy to lose. As Chairman, I
frequently reached back to consult with former Board members on
areas of their special expertise and I would hope that all current
and future Board members utilize the significant asset in developed
knowledge of the prior Board members. To the extent prior members
can be available for public meetings, this would be a substantial
benefit to the agency to broadly inform the Board, the scientific
staff, and the public. 

"The Board has a
unique contribution to make on programmatic resource allocations and
risk management of the research and clinical investments in each
disease area. The opportunities in some disease areas for major
advancement are numerous, whereas there are major diseases and/or
critical research areas where the potential, high-value advancement
options are relatively limited. For Board members who have
participated in over 20 peer reviews and 70 Board meetings, the
programmatic perspective on the opportunities in each disease area
has been highly developed. Concurrently, those Board members or
former Board members have substantial knowledge that is of critical
value in reaching programmatic decisions on the number of
opportunities for advancement in any specific disease area and the
relative risk that needs to be taken to accomplish meaningful
breakthroughs in advancing the research and clinical opportunities
in a disease and/or injury area. 

"I hope these examples
of how former Board members can contribute to the current Board’s
information in reaching decisions on the best medical/scientific
grants and loans are helpful. As I stated earlier, it would be a
tragedy if the expertise of Board members built up over six or more
years is lost. The field is extremely complicated and the Board needs
the opportunity to consider all of the information available. The
Board can choose to accept or reject any past advice or opinions
gained from prior peer review sessions or Board meetings, but the
Board should have access to the full spectrum of information and the
treasury of scientific and medical advice the agency has received
since its inception.

"There are areas that I
have not addresses in this short response, such as the institutional
value of applicants being able to rely upon prior scientific and/or
policy direction, in their current applications. From a historical
perspective, prior Board members and/or the Chairman can have
significant information that is relevant to these evaluations,
especially if the individual Board member served on a special Task
Force , Subcommittee or peer review. These more complicated areas of
individual contribution by former Board members I can address in a
future communication; but, this specific subject – alone – could
comprise several pages and I would like to obtain critical advice and
perspective from other former Board members and the scientific
community before discussing this area in greater detail.
"Bob Klein
"Chair Emeritus
"California Institute
for Regenerative Medicine"

Source:
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$70 Million Research Proposal Up Next Week at California Stem Cell Agency


Directors of the $3 billion California
stem cell agency will hold a special, teleconference meeting next
Tuesday to deal with business that was put off last month, including
a new, $70 million research round.
The meeting is necessary because directors could not finish their business July 26 after they lost the supermajority quorum required to do business. They delayed action on a number of
matters, including the translational research proposal, which is
scheduled to be posted as an RFA next month.
The governing board also had discussed
dealing with changes in its intellectual property rules at next week's meeting, but that proposal is not on Tuesday's agenda. The next meeting of the board is Sept. 5 and 6 in San Francisco. The
agency has confirmed that it will be a two-day session.
At least one new appeal is expected to
come up in September in the $243 million disease team round that
consumed so much time in July.
Next week meeting involves a host of
locations throughout California. The public is entitled to
participate in the session from any of those sites. The specific
addresses can be found on the agenda.

Source:
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CSCR Reading List: A Look at the Grant Appeal Process at the California Stem Cell Agency


Here is a list of articles from the California Stem Cell Report as well as CIRM documents dealing with the grant appeal process at the California stem cell agency. The list was prepared on Aug. 16, 2012. To read the entire articles, click on the links.

Articles from the California Stem Cell Report

Aug. 7, 2012
A tiny opening exists for scientists
who failed to win approval last month of their bids for $20 million
research awards from the California stem cell agency.
July 26, 2012
Directors of the California stem cell
agency today approved $151 million in research awards aimed at
commercializing stem cell research and pushing therapies into
clinical treatment....Five of the applications involving appeals were
sent back by the board for more review. (See herehere and here.)
They will be considered again in early September or October.
July 24, 2012
The California stem cell agency's
latest grant round – which is budgeted for $243 million – has
drawn an extraordinary and record outpouring of appeals from more
than half of the scientists rejected by the grant reviewers. Nine of
the 15 applicants who were turned down have filed appeals to the
governing board for its meeting
Thursday
 in Burlingame. No other CIRM grant round
has drawn as high a percentage of appeals, formally known as
extraordinary petitions. (See here
for a story on the previous record 
for percentage of
appeals.)
Aug. 10, 2010

Emotionalism and Potential Favoritism Cited as Need for Changes in CIRM Grant Appeals
Passion and favoritism, democracy and gamesmanship – all are part of the ongoing discussion among directors of the $3 billion California stem cell agency as they try to fix what some of them call a “broken” grant appeal process.

July 19, 2010
UC Davis Scientist Praises CIRM Appeals Change
A stem cell researcher at UC Davis today said a change in the CIRM grant appeals procedure makes “a lot of sense.” Writing on his blog in regard to "extraordinary petitions," Paul Knoepfler said, “I think the proposed change makes a lot of sense and would greatly improve the process. Sometimes the reasons in the petitions are clearly not meritorious and as it now stands, they end up wasting CIRM's time. The last time CIRM received 9 petitions as well, which represented a remarkably large fraction of the total applications. A stricter process would discourage the submission of large numbers of petitions, an important issue given that the number of petitions received by CIRM continues to grow.”

CIRM Finally Discloses Grant Appeal Proposals
The California stem cell agency early today belatedly posted a two-page memo on proposed changes in how it will deal with appeals by scientists whose grant applications have been rejected by reviewers.

July 18, 2010
Sticky, Troubling Appeals by Rejected Researchers Targeted by Stem Cell Agency
A key step in the process for awarding billions of dollars in research grants is “broken,” according to many directors of the California stem cell agency, and major changes are looming that will affect hundreds of scientists.

June 22, 2010
Immunology Grants: CIRM Gives $25 Million to 19 Researchers
Directors of the California stem cell agency today approved $25 million for immunology research, overturning four negative decisions by its grant reviewers. Directors faced a record nine public petitions to reverse its reviewers. After some grumbling, the directors, who see only a summary of the application and reviewer comments, okayed the four.

June 19, 2010
More Grant Appeals Filed: Yamanaka Invoked
The California stem cell agency has set another benchmark, although this is one that it may not want to trot out at international stem cell gatherings. Eight scientists whose applications were rejected for funding by the CIRM grants working group and scientific reviewers are seeking to overturn those decisions at the agency's board meeting in San Diego on Tuesday. It is the largest number of “extraordinary petitions” ever filed and amounts to more than one out of every four applications that were turned down. The total number of applications received was 44. Fifteen were approved. Some of the researchers are likely to appear at the board meeting and make a personal pitch.

May 18, 2010
Competing for California Stem Cell Cash: Rules of the Game Coming Under Scrutiny
Every California stem cell scientist and researcher looking to join the field – be they from academia or business – should pay very close attention to a meeting next week of a key group of directors of the $3 billion California stem cell agency. They plan to discuss possible changes in how scientists compete for stem cell cash, which is no small matter since CIRM has another $2 billion to hand out over the next several years.

CIRM documents

Pre-application review – CIRM report (Jan. 2010) on the process

Extraordinary petition policy – Version as of 5/25/10

Appeal policy – Version as of 5/25/2010

Transcript of July 20, 2010, meeting of CIRM directors Science Subcommittee. Discussion of petitions begins on page 40.

Transcript of the June 22, 2010, CIRM directors meeting. Discussions of extraordinary petitions begin on pages 24 and 67.

Transcript of 5/25/10 Science Subcommittee meeting dealing with appeals issue. Discussion begins on page 99.

Source:
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Some breast cancer tumors may not originate from stem cells?

Surprise breast cancer source by Jennifer Welsh,TheScientist.com, September 2, 2010. First paragraph:

Some breast cancer tumors may not originate from stem cells as previously believed, according to a study published in the September 3rd issue of Cell Stem Cell. The discovery is an important step in the development of treatments for these cancers.

This news story is based on the publication: BRCA1 Basal-like Breast Cancers Originate from Luminal Epithelial Progenitors and Not from Basal Stem Cells by Gemma Molyneux and 11 co-authors, including Matthew J Smalley, Cell Stem Cell 2010(Sep 3); 7(3): 403-417. OA article [Full text] [PubMed citation].

A commentary: Cancer Cell of Origin: Spotlight on Luminal Progenitors by Christine L Chaffer and Robert A Weinberg, Cell Stem Cell 2010(Sep 3); 7(3): 271-272. [PubMed citation].

International Stem Cell Corporation Announces Start of Marketing Collaboration with John Mauldin for Skin Care Products

OCEANSIDE, Calif.--(BUSINESS WIRE)--International Stem Cell Corporation (OTCBB:ISCO),http://www.internationalstemcell.com, announced today that it had launched the first phase of its previously announced joint marketing campaign with John Mauldin, the founder and Chairman of Millennium Wave Investments, to market Lifeline Skin Care’s (LSC) new topical skin care products to more than one million of Mauldin’s subscribers. This launch follows ISCO’s earlier successful release to its own investor base and to the general public through its website,http://www.lifelineskincare.com.

“Having seen a strong demand from our investors and followers, we have been working diligently to increase both our marketing and production capabilities. John Mauldin’s participation will support the continuation of our rapid progress”

Mauldin, a best-selling writer, author of a monthly investment newsletter, and recognized marketing expert, provides LSC with the skills and a platform to enable LSC to continue expanding its sales while keeping marketing cost per customer lower than would be possible with a traditional media campaign.

Lifeline Skin Care’s exclusive patent pending skin rejuvenation serums contain extracts from ISCO’s proprietary “parthenogenetic” stem cells created from unfertilized eggs. The stem cell extract was discovered during ISCO’s therapeutic research that revealed the extract’s potential applications in skin cell rejuvenation. Independent third party testing indicates that both the day and the night serums now being offered have significant positive effects on the look and feel of the skin.

“Having seen a strong demand from our investors and followers, we have been working diligently to increase both our marketing and production capabilities. John Mauldin’s participation will support the continuation of our rapid progress,” says Dr. Ruslan Semechkin, CEO of Lifeline Skin Care.

John Mauldin adds, “I’m pleased to be involved with LSC and to help these truly revolutionary skin care products reach a broader audience. This new collaboration gives me the ability to offer these unique LSC products to my loyal client base.”

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB)

International Stem Cell Corporation is a California-based biotechnology company focused on therapeutic and research products. ISCO's core technology, parthenogenesis, results in creation of pluripotent human stem cells from unfertilized oocytes (eggs). These proprietary cells avoid ethical issues associated with use or destruction of viable human embryos and, unlike most other major stem cell types, can be immune matched and be a source of therapeutic cells with minimal rejection after transplantation into hundreds of millions of individuals of differing racial groups. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary, Lifeline Cell Technology, and has developed and is now marketing a line of skin care products via its subsidiary, Lifeline Skin Care. ISCO is advancing novel human stem cell-based therapies where cells have been proven to be efficacious but traditional small molecule and protein therapeutics have not. More information is available on ISCO's website,http://www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

FORWARD-LOOKING STATEMENTS

Statements pertaining to anticipated developments, product introduction plans and related support, the potential benefits of planned products, anticipated sales growth for recently introduced products, and other opportunities for the company and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products and the management of collaborations, regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update forward-looking statements.

Key Words: Stem cells, parthenogenesis, biotechnology, skin care, anti-aging

International Stem Cell Corporation to Present Ethical and Technical Qualities of Human Parthenogenetic Stem Cells at the Center for Ethics in Science

International Stem Cell Corporation (OTCBB:ISCO), http://www.internationalstemcell.com, will lead a free public discussion highlighting the ethical considerations and medical advantages surrounding the derivation of human stem cells from unfertilized human eggs using ISCO's patented technology known as parthenogenesis. The discussion, sponsored by The Center for Ethics in Science and Technology, will take place on Wednesday, January 5th from 5:30-7:00 pm at the Reuben H. Fleet Science Center Community Forum, 1875 El Prado, San Diego, CA. Jeffrey Janus, Senior VP, will be the featured speaker in a program moderated by Michael Kalichman, Ph.D., Director of the Research Ethics Program at UC San Diego and co-founder and director of the Center of Ethics in Science and Technology.

ISCO's patented method of parthenogenesis results in pluripotent human stem cell lines having the positive characteristics of embryonic stem cells without the damage or destruction of a viable human embryo.

In preparation for the discussion, Dr. Kalichman and Mr. Janus will be interviewed on Monday, January 3, on XETV channel 6 at 7:25 am, and on the radio show "These Days" broadcast on KPBS, 89.5 FM at 9:20 am.

Registration for the free event can be made at http://www.ethicscenter.net.

In addition to the ethical advantages of not requiring the destruction of a viable human embryo, parthenogenetic stem cells possess unique qualities allowing them to be immune matched to millions of persons, giving them the potential to be used in many future stem cell based therapeutic applications. ISCO has derived ten parthenogenetic stem cell lines in Russia using Western-style informed consent processes, and is now setting up processes in the United States. However, the ethical and regulatory requirements involved in obtaining unfertilized human eggs in the U.S. present challenges to ISCO and other researchers working in stem cell field. ISCO's hope is to conform to these complicated regulatory and ethical frameworks so clinical-grade human parthenogenetic stem cells may be derived in the U.S. and used to create a bank of parthenogenetic stem cells that may be used by millions of persons of different sexes and racial groups.

According to Dr. Kalichman, "Success in scientific development often depends on both public understanding of science and on understanding by scientists of public concerns. The participation of ISCO in the proposed public forums is praiseworthy as a way to meet both of these goals."

"In addition to the ethical considerations, human parthenogenetic stem cells offer a potentially superior solution to stem-cell based therapies because they allow immune-matching that may alleviate immune rejection problems that are likely to hamper other stem cell therapies. This is especially important when the patients have a genetically-based disease, and cannot use their own stem cells," says Jeffrey Janus. "ISCO is one of the few therapeutic research organizations pursing the utilization of these unique cells because of not only the ethical advantages, but also because of these important medical considerations."

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB):

International Stem Cell Corporation is a California-based biotechnology company focused on the therapeutic applications of human parthenogenetic stem cells and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. This offers the potential to create the first true stem cell bank, UniStemCell™, while avoiding the ethical issue of using fertilized eggs. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at ISCO's website, http://www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

FORWARD-LOOKING STATEMENTS

Statements pertaining to anticipated technological developments and therapeutic applications, and other opportunities for the company and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products, uncertainty in the results of clinical trials or regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update these forward-looking statements.

Key Words: Stem Cells, Biotechnology
, Parthenogenesis

International Stem Cell Corporation
Kenneth C. Aldrich, Chairman
760-940-6383
kaldrich@intlstemcell.com
or
Jeffrey Janus, Senior Vice President
760-940-6383
jjanus@intlstemcell.com

Stem Cell Blowback from Proposition 71


Proposition 71 last week once again
stood in the way of action by the $3 billion California stem cell
agency.

This time it was a bit of minutia
embedded in state law that prevented the agency's governing board
from going forward. The result is that the board will have to hold
another meeting in August to approve matters that need to be acted on
in a timely fashion.
The minutia involves the supermajority
quorum requirement for the board, the percentage of board members
needed to conduct business legally. Proposition 71, the 10,000-word
ballot initiative that created the agency in 2004, stipulates that 65
percent of the 29 members of the board be present for action.
Here is what happened: Late last
Thursday afternoon, CIRM directors were moving fast after a long day
of dealing with $151 million in research awards. But as they
attempted to act on proposed changes in the agency's important
intellectual property rules, one of the board members left the
meeting, presumably to catch a flight. The result was that the
meeting quickly ended after it was decided to deal with the IP
proposal and another matter during a telephonic meeting this month.
The quorum problem has plagued the CIRM
board since its inception, although the situation has eased since
J.T. Thomas
, a Los Angeles bond financier, was elected chairman in
2011. A few years back, the board also changed its rules to allow a
limited number of board members to participate in meetings by
telephone, reducing the pressure on board members to physically
attend meetings.
The obvious solution would be to change
the quorum to 50 percent, a reasonable standard. However, the board
is legally barred from doing that. To make the change would require a super, supermajority vote, 70 percent of
each house of the state legislature and the signature of the
governor. That is another bit that is embedded in state law, courtesy of Proposition 71. To attempt to win a  70 percent legislative vote would involve a political process
that could be contentious and also involve some horse-trading that
the stem cell agency would not like to see.
Why does the 65-percent quorum
requirement exist? Normally, one would think such internal matters
are best left to the governing board itself. It is difficult to know
why former CIRM Chairman Bob Klein and his associates wrote that
requirement into law. But it does allow a minority to have effective
veto power over many actions by the governing board.
Of course, there is another way to look
at the problem: CIRM board members could change their flights and
stick around until all the business is done. But that would ignore
the reality that all of them are extremely busy people and have
schedules that are more than full.
All of this goes to one of the major policy issues in California -- ballot box budgeting and the use of initiatives that are inflexible and all but impossible to change, even when the state is in the midst of a financial crisis in which the poor, the elderly and school children are the victims. One California economist has called the situation "our special hell."

Source:
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Researcher Alert: Opportunity for Fresh Appeal in $243 Million Disease Team Round


A tiny opening exists for scientists
who failed to win approval last month of their bids for $20 million
research awards from the California stem cell agency.

On July 26, the agency's governing
board okayed $151 million for eight scientists during a day filled
with emotional testimony from patients, as well as appeals by
researchers seeking reconsideration of rejection by grant reviewers
at the California Institute for Regenerative Medicine. The board also
asked reviewers to take a fresh look at five applications in its signature disease team round.
However, the board failed to act on
eight applications, meaning that they are still pending. Normally the
board will approve -- as a group -- one set of applications. Then, at
the same meeting, it will vote to reject another set of applications.
On July 26, however, the hard-pressed directors late in the
afternoon lost the supermajority quorum (65 percent) required to do
business and adjourned without acting on all the applications.
This situation rarely occurs on award
rounds. In our recollection, it has happened only once before
although there may have been other occasions.
That leaves an opening for more
researchers to ask the board to act favorably at its Sept. 5-6 meeting in San Francisco on applications rejected by reviewers. Money
is available. The July 26 round was budgeted for $243 million.
At the meeting last month, discussion
by directors provided several clues to appropriate avenues for
reconsideration. They were interested in appeals, formally called
extraordinary petitions, that brought genuinely new information to
the table. Serious errors in the reviews – something more than
differences of opinion – were of interest. Wide variance in the
spread of scientific scores on specific applications, including the
preliminary scores, also triggered directors' interest.
Researchers considering appeals would
be well-advised to listen to the audiocast of the meeting to hear the
discussion of appeals. The transcript of the meeting also should be
posted soon on the CIRM website, probably this week. The transcript
can be found via this page when it is posted. The audiocast
instructions can be found on the July 26 meeting agenda.
(The best available information on the
CIRM web site shows a Sept. 5-6 governing board meeting. However,
that schedule also shows other two day meetings earlier this year,
which actually have turned out to be only one day.)

Source:
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Text of CIRM Response on the Weakening of Financial Disclosure Requirements


On April 24, the California Stem Cell
Report
asked the state stem cell agency about its proposed changes
in its requirements for financial disclosures from its officials.
Here are the key elements from that query with the stem cell agency's
response following.
The agency was invited to respond to
the following: "The new code appears
to give discretion to the employee to determine what enterprise is
'the type to receive grants or other monies' from CIRM. Additionally,
it would not appear to require disclosure of an investment with or
income from, for example, Kleiner Perkins, which is a major investor
in iPierian, which holds $7 million in CIRM grants and could well be
a future applicant...(T)he weakening of the code comes at a time when
the agency is moving to cozy up to industry and looking to raise
funds to continue its existence, all of which raises even greater
conflict of interest issues than earlier in CIRM's existence."
Here is the text of the response April
25 from Kevin McCormack, CIRM's new senior director for public
communications and patient advocate outreach.

"In answer to your question, we
are proposing changes to the Conflict of Interest Code based upon
recommendations from the California Fair Political Practices
Commission (FPPC). The Political Reform Act requires state
agencies like CIRM to review their Conflict of Interest Codes every
two years.  The FPPC, which is charged with enforcing the
Political Reform Act, is responsible for reviewing and approving
CIRM's Conflict of Interest Code.  In preparation for this
review, CIRM's counsel met with the FPPC staff who suggested the
proposed amendments which are the subject of the upcoming Governance
Subcommittee meeting.  The proposed amendments to CIRM's
Conflict of Interest Code are consistent with the FPPC's position
that agencies should tailor their disclosure categories to type of
work performed by the agency.  For example, CalPERS's
conflict of interest code requires CalPERS officials to disclose
investments in, and income from, entities that are of the type with
which CalPERS contracts and entities in which funds administered by
CalPERS could be invested.  Likewise, the State Board of
Education requires its members to disclose investments, business
positions, and income from a publisher, manufacturer, or vendor of
instructional materials, or services offered to educational
institutions in the State of California and investments, positions of
management and income from any private school in the State of
California.  Similar to these codes, the FPPC proposed that
CIRM's Code be tailored to the nature of CIRM's work.  Thus,
the FPPC proposed that CIRM require its board members and high-level
employees to disclose investments in, and income from, entities that
are of the type with which CIRM would contract or from which CIRM
could procure goods or services as well as investments in, and income
from, biotech and pharmaceutical companies.  Because these
are the types of entities that are likely to create potential
conflicts of interest, we believe the disclosure categories are
appropriate.  It is important to remember, however, that
this is a preliminary proposal.  CIRM will seek input from
the Governance Subcommittee, the Board, and members of the public
before seeking approval of the amendments."

Source:
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California Stem Cell Agency Wants to Weaken Financial Disclosure for Execs and Board


The $3 billion California stem cell agency, which is moving to engage the biotech industry ever more closely, is proposing a major weakening of the financial disclosure requirements for its board of directors and executives.

The move comes as the agency is also seeking to raise cash from the private sector to continue the state research effort's existence.  CIRM's dimming of transparency runs counter to government trends nationally for more disclosure rather than less, including regulations enacted last year by the NIH.

The proposed changes will be considered next Thursday by the CIRM directors' Governance Subcommittee, which will have public teleconference sites in San Francisco and Irvine and two each in Los Angeles and La Jolla.

Currently CIRM board members and top executives must disclose all their investments and income – in a general way – along with California real property that they hold. Under the changes, disclosures would instead be required only "if the business entity or source of income is of the type to receive grants or other monies from or through the California Institute for Regenerative Medicine." CIRM offered no explanation of what it means by "of the type to receive" funds from the agency.

The proposal further narrows disclosure in connection with income or investments in enterprises that provide facilities or services used by CIRM. With the removal of the requirement for reporting all investments, CIRM's changes also specified disclosure of income and investments connected to business entities (nonprofits are not mentioned) that are engaged in biomedical research or the manufacture of biomedical pharmaceuticals.

The new code would appear to give CIRM directors and executives wide personal latitude in determining what should be disclosed. The current language simply states that "all" investments, etc., must be disclosed. That language originated in the 1974 ballot initiative that created the state disclosure requirements. The initiative's intent was to give the public and interested parties access to key information that would allow them to determine what forces are at work in government and whether conflicts of interests exist – as opposed to simply trusting the assertions of officials without additional substantiation.

The new code also appears to relieve CIRM officials of reporting investment in or income from venture capital or other firms that may be engaged in financing biotech or stem cell enterprises, since the firms do not receive cash from CIRM or engage in biomedical research.

While the code appears to provide more reporting freedom for board members and executives, it also may indirectly impose a burden on them to determine whether any of their investments may involve biomedical research or enterprises that could possibly receive funds from CIRM at some point

Earlier this week, the California Stem Cell Report asked the stem cell agency about such issues. Kevin McCormack, CIRM's new senior director of public communications and patient advocate outreach, replied that the changes were "proposed" by the state Fair Political Practices Commission, which oversees state disclosure laws.

He said the FPPC says agencies "should tailor their disclosure categories to type of work performed by the agency."

McCormack cited as examples the State Board of Education and the state retirement system.

As for the specific changes in CIRM's code, McCormack said,

"Because these are the types of entities that are likely to create potential conflicts of interest, we believe the disclosure categories are appropriate."

McCormack did not comment on whether the proposed code would give board members more reporting latitude or whether it relieve them of reporting investments tied to the financing of biotech or stem cell firms. (The text of his response can be found here.)

The California Stem Cell Report is querying the FPPC concerning its policy regarding disclosure codes. CIRM's new code is expected to go before the the full CIRM board in late May. The changes are subject to review by the FPPC and then must formally go through the state administrative law process during which the public can comment and the code modified before final adoption.

Our take? The proposed changes are not in the best interests of CIRM or the people of California. The absence of transparency and disclosure only breeds suspicious speculation of the worst sort. The agency is already burdened by conflicts of interest that are built in by the ballot measure that created it in 2004. Nearly all of the $1.3 billion that CIRM has handed out has gone to institutions linked to CIRM directors. Weakening disclosure at a time when the biotech industry will become more closely tied to CIRM inevitably raises questions about financial linkages – present and future – between CIRM directors and executives and industry. For the past seven years, CIRM directors and staff have been able to comply with
more complete disclosure. They should continue to do so for the life of the agency, which will expire in less than a decade unless it finds additional sources of cash.

Source:
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The Afterlife of the California Stem Cell Agency: Venture Philanthropy and Big Pharma


The $3 billion California stem cell agency, which is facing its possible demise in five years, is exploring an afterlife that dips into "venture philanthropy" on a national level as well as investment ties with Big Pharma.

The Golden State's unprecedented research program laid out those possibilities in a "transition plan" sent this week to Gov. Jerry Brown and the state legislature. The plan was required under a law passed two years ago. The agency's future direction was also aired at a meeting last month in Los Angeles.

The California Institute for Regenerative Medicine(CIRM) will run out of funds for new grants in 2017. Its only real source of funding is cash that the state borrows (bonds). CIRM says that only $864 million remains for new research awards, and some of its recent grant rounds exceed $200 million. The current position of the agency is that it is "premature" to consider asking voters in financially strapped California to approve another multi-billion dollar bond measure.

The venture philanthropy effort involves creation of a nonprofit organization. CIRM Chairman Jonathan Thomas said in January that he is "test-driving (the proposal) with some high net worth donors we know to be interested in the stem cell space." Thomas was addressing the Citizens Financial Accountability and Oversight Committee, the only state entity specified charged with overseeing the agency and its directors. He said,

"We're busily putting together in conjunction with a national organization called the Alliance for Regenerative Medicine the plans for a nonprofit venture philanthropy fund."

He said it would "would accept applications for awards from researchers and companies all over the country, not just those funded by CIRM, but those funded by NIH or the New York Stem Cell Foundation or the state of Maryland or whatever."

The Alliance for Regenerative Medicine is an industry-dominated lobbying group, based in Washington, D.C.  The group's executive director and co-founder is Michael Werner, a longtime pharma and health industry lobbyist, who is also a partner in the influential Washington law firm of Holland and Knight.

The "biopharma investment fund" proposed by CIRM is less well developed. CIRM said it plans to explore opportunities with companies to fund stem cell research in California. The transition document uses as an example an $85 million deal between Pfizer and UC San Francisco, which gives the company special access to biomedical research.

The transition plan also touches on other issues such as winding down grants after its new grant money runs out, along with protecting intellectual property.

The plan could be considered a marketing tool for the agency's afterlife efforts. The document devotes a good portion of its nine pages to recounting the history of CIRM and touting its accomplishments.

Thomas used the occasion of the submission of the plan as a springboard for a piece yesterday on the CIRM research blog.He concluded his item by quoting from the plan itself. CIRM's achievements during the past seven years, he wrote, "will allow California to continue world (stem cell) leadership in the coming decades."

Source:
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CEO of Biotime's Comments on Stem Cell Agency and Development of Therapies


Michael West, CEO of Biotime, Inc.of Alameda, Ca., has published the text of his prepared remarks to the Institute of Medicine panel examining the performance of the $3 billion California stem cell agency.

Here is one excerpt from the statement by West, who was also CEO at Advanced Cell Technology and founded Geron.

"To put it simply, stem cell research by itself will not lead to cures. Research and DEVELOPMENT leads to cures. In my opinion, if CIRM fails to deliver on its goal to deliver cures, it will not be a result of internal governance issues. Instead, it will be a result of inefficient capital allocation. A graphic way of visualizing my point is to say that CIRM has historically funded primarily research, and little product development, i.e. large “R” little “d”. Approximately 5% of CIRM’s expenditures have been allocated to biotechnology and health science entities whose expertise is product development, and 95% has been allocated to nonprofit institutions in the state for basic research. Human therapeutic product development in the United States requires a very intense and expensive process for approval that is primarily focused on development side of the equation. In this respect, therapeutic approvals differ significantly from the discovery and development of silicon-based technologies that have been so successfully commercialized in California."

Here is a link to the full text of what West posted on the Biotime web site.

Source:
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California Stem Cell Agency Launches $30 Million Plan to Lure Industry


Just one week after the $3 billion California stem cell agency was sharply criticized for its failure to adequately support biotech firms, the agency formally kicked off a $30 million effort to engage industry more closely.

The initiative, in the works since the middle of last year, was heralded as the beginning of a "new era" for CIRM, which is moving to transform into cures the stem cell research it has funded over the last seven years. The agency has scheduled a webinar for April 25 for prospective applicants.

CIRM's press release, crafted by the agency's new PR/communications director, Kevin McCormack, yesterday quoted CIRM President Alan Trounson as saying,

"This initiative is a major new development in the progress towards providing new medical treatments for patients by engaging the most effective global industry partners."

Elona Baum, the agency's s general counsel and vice president of business development, said the program "represents a new era for CIRM."

Under the RFA, the agency will award up to $10 million each for three grants or loans. The program, however, is not limited to businesses. Non-profits may apply as well. Representatives from industry have complained about a strong tilt on the part of CIRM towards academic and non-profit research enterprises. The CIRM board is dominated by representatives from those two sectors.

The program grew out of recommendations in November 2010 from an "external review" panel put together by CIRM that said the agency needed to do better with business. The refrain was heard again directly from stem cell firms at last week's hearing by the Institute of Medicine on the stem cell agency's performance. According to CIRM's figures, businesses have received $54 million in grants and loans since 2005, the first year the CIRM board approved grants, out of a total of $1.3 billion.

Only one news outlet has written a story so far about the posting of the RFA and the press release, as far as can be determined.

Ron Leuty of the San Francisco Business Times said,

"The most likely candidates to attract industry funding would be CIRM’s 'disease team' grant winners, who face a deadline of 2014 to bring a project to the point of first-in-human clinical trials. CIRM has weighed options for pushing those projects — there are 13 of them now — deeper into the FDA approval process."

CIRM said in the RFA material,

"The intent of the initiative is to create incentives and processes that will: (i) enhance the likelihood that CIRM funded projects will obtain funding for Phase III clinical trials (e.g. follow-on financing), (ii) provide a source of co-funding in the earlier stages of clinical development, and (iii) enable CIRM funded projects to access expertise within pharmaceutical and large biotechnology partners in the areas of discovery, preclinical, regulatory, clinical trial design and manufacturing process development.

"This initiative requires applicants to show evidence of either having the financial capacity to move the project through development or of being able to attract the capital to do so. This may be evidenced by, for example, (i) significant investment by venture capital firms, large biotechnology or pharmaceutical companies and/or disease foundations; or (ii) a licensing and development agreement with a large biotechnology or pharmaceutical company or a commitment to enter into such an agreement executed prior to the disbursement of CIRM funding.

"The objective of the first call under this initiative, the Strategic Partnership I Awards, is to achieve, in 4 years or less, the completion of a clinical trial under an Investigational New Drug (IND) application filed with the Food and Drug Administration (FDA)."

CIRM has scheduled a webinar on the RFA for prospective applicants for next Wednesday, April 25. It is asking for registration and questions in advance.



(Editor's note: An earlier version of this article did not contain the sentence about businesses receiving $54 million out of $1.3 billion awarded by CIRM.)

Source:
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International Stem Cell Corporation Updates on Marketing Strategy of Its Subsidiary Lifeline Skin Care

International Stem Cell Corporation (OTCBB:ISCO) http://www.internationalstemcell.com, a California-based biotechnology company focused on therapeutic and research products, announced today the selection of the Richards Partners as agency of record for its wholly owned subsidiary Lifeline Skin Care, Inc. ("Lifeline"). Lifeline offers luxury anti-aging skin care products based on its proprietary stem cell technology. Based in Dallas, the Richards Partners is the nation's largest independent branding agency.

Lifeline's skin care products were developed by a team of ISCO research scientists in collaboration with world-renowned cosmetic experts, and offer a comprehensive approach to skin care using patent pending moisture serums for day and night use. Made with human parthenogenetic stem cell extracts, the serums deliver anti-aging benefits, resulting in healthier and younger-looking skin. These products were launched in November 2010 and are available for purchase through the http://www.lifelineskincare.com website and selected luxury spas across the United States.

Adding Richards Partners to the Lifeline Skin CareTM team is part of Lifeline's plan to build on its initial successful product launch last year, and the Web based sales that have followed, by initiating a series of new marketing campaigns to further develop the Lifeline Skin CareTMbrand identity. These new marketing initiatives include traditional print and news media campaigns, as well as a new digital strategy focused on Internet and social media. "We are looking forward to working closely with the Richards Partners and leveraging their expertise in these areas to enhance the profile of Lifeline Skin CareTM and its revolutionary new skin care products," says Lifeline CEO Ruslan Semechkin, PhD. "Building a globally recognizable brand is a long-term process and this is an important step towards creating Lifeline's name. We believe this is a good time to begin these campaigns and continue our sales momentum resulting from our successful initial launch," Dr. Semechkin continued.

As previously announced the Mauldin Group, Lifeline's marketing partner, will be managing the day to day relationship with the Richards Partners and planning additional direct marketing initiatives similar to the successful initial launch in 2010. Tiffani Mauldin-Frederick, marketing partner of Lifeline Skin CareTM, says, "We're excited about working together with Richards Partners. We believe the collaboration will provide additional momentum and increase brand recognition for Lifeline Skin CareTM and help educate the public about the revolutionary science behind these products."

ABOUT INTERNATIONAL STEM CELL CORPORATION (ISCO.OB)

International Stem Cell Corporation is a California-based biotechnology company focused on the therapeutic applications of human parthenogenetic stem cells and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing sexes, ages and racial groups. This offers the potential to create the first true stem cell bank, UniStemCell™, while avoiding the ethical issue of using fertilized eggs. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at ISCO's website, http://www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications please click on the following link:http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

FORWARD-LOOKING STATEMENTS

Statements pertaining to anticipated developments, product introduction plans and related support, the potential benefits of products, and other opportunities for the company and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products and the management of collaborations, regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update forward-looking statements.

Key Words: Stem cells, parthenogenesis, biotechnology, skin care, anti-aging

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20110419005649r1&sid=14230&distro=ftp

International Stem Cell Corporation
Kenneth C. Aldrich, Chairman
1-760-940-6383
kaldrich@intlstemcell.com

or
Lifeline Skin Care, Inc.
Ruslan Semechkin, PhD, President & CEO
Vice President, ISCO
ras@intlstemcell.com

International Stem Cell Corporation Completes First Series of Pre-Clinical Testing of Hepatocytes Derived from Human Parthenogenetic Stem Cells

Data from successful animal study using liver cells derived from human parthenogenetic stem cells to be presented at two upcoming scientific conferences

Company also announces collaboration with Cedars-Sinai Medical Center for liver disease research, and completion of research on cytochrome P450 activity

International Stem Cell Corporation (OTCBB:ISCO) (ISCO) announces successful completion of the first series of preclinical testing of hepatocytes derived in the lab from human parthenogenetic stem cells (hpSC). In the transplantation mouse model, inoculated cells were capable of engrafting and surviving in specific niches within the liver, and were further developing into cells with essential hepatocyte-like features. Moreover, the transplanted cells could be identified in recipient tissue for a prolonged period of time.

The findings of these studies will be presented at the annual meeting of American Society of Gene & Cell Therapy, May 18-21 in Seattle, and at the International Society for Stem Cell Research annual conference, June 15-18 in Toronto.

"These results mark the achievement of a key milestone in our preclinical research," said Andrey Semechkin, Ph.D., ISCO's Chief Executive Officer. "Specifically, we have perfected the technique to transplant hepatocytes, an extremely fragile cell type, into the liver of animals, which is an easily injured organ. This preclinical research helps us develop our collaborations with clinics."

Nikolay Turovets, Ph.D., ISCO's Director of Research and Therapeutic Development commented "The next phase of research is to conduct experiments to demonstrate the ability of the transplanted cells to perform the vital functions of normal hepatocytes and, accordingly, their ability to modify disease by restoring the missing function of a patient's diseased liver."

The Company also announces the signing of a joint collaboration agreement with Cedars-Sinai Medical Center in Los Angeles to conduct research to develop therapies for liver diseases, in particular urea cycle disorders. Jeffrey Fair, MD., a liver transplant surgeon and Director of Translational Research for the Cedars-Sinai Comprehensive Transplant Center and Department of Surgery, will lead the Cedars-Sinai research team.

Dr. Fair said, "Urea cycle disorders are genetic deficiencies of liver function, which mostly affect newborns and oftentimes cause catastrophic neurological injury. It has been shown that transplantation of donor hepatocytes can save patient lives. Therefore, derivation of hepatocytes from hpSCs that can be immune-matched to the patient is a very pressing goal."

The Company also announces the completion of research focused on the investigation of cytochrome P450 activity and corresponding genes in hepatocytes derived from hpSC. According to the results, the differentiation technology developed by ISCO allows the creation of hepatocytes in the fetal stage of development. This research may contribute to the design of a product for future drug testing and discovery.

About International Stem Cell Corporation

International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells and the development and commercialization of cell-based research and cosmetic products. ISCO's core technology, parthenogenesis, results in the creation of pluripotent human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical issues associated with the use or destruction of viable human embryos. ISCO scientists have created the first parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing genders, ages and racial background. This offers the potential to create the first true stem cell bank, UniStemCell™. ISCO also produces and markets specialized cells and growth media for therapeutic research worldwide through its subsidiary Lifeline Cell Technology, and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at http://www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications, please click on the following link:http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

Forward-looking Statements

Statements pertaining to anticipated developments, research and development goals and related potential therapeutic treatments, the potential benefits of products, and other opportunities for the company and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products and the management of collaborations, regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update forward-looking statements.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20110426005697r1&sid=14230&distro=ftp

International Stem Cell Corporation
Kenneth C Aldrich, Chairman
760-940-6383
kaldrich@intlstemcell.com

or
Nikolay Turovets, Ph.D.
Director, Research and Therapeutic Development
nturovets@intlstemcell.com

A Primer on the Use of Stem Cells in Ophthalmology by Irving J. Arons

An extremely comprehensive article about stem cell programs in opthalmology by Irving J. Arons

A Primer on the Use of Stem Cells in Ophthalmology
by Irving J. Arons

I recently came across an interesting news release from International Stem Cell Corporation (ISCO) announcing that it had formed a new business unit, Cytovis, to focus on stem cell programs in ophthalmology, including CytoCor for the cornea and CytoRet for the retina.

That got me thinking about how little I knew about what was going on in stem cell research in ophthalmology, despite having written about two developments in the field, the London Project to Cure Blindness and the University of California Irvine (UCI) program to develop an artificial retina based on stem cell research.

I decided to become better informed by taking a closer look at what was happening in this field, and presenting that story.

Introduction
Commenting on a EuroRetina Meeting held earlier in 2008, John Morrow of Newport Biotech Consultants noted, as reported by Ophthalmology Times Europe in September 2008, “Stem Cells are looked upon as either an ethical train wreck or the gateway to the alleviation of human illness, depending on which side of the political spectrum one resides. This unfortunate notoriety has resulted in unprecedented coverage in the media, but this has not done much to advance the cause of this technology. Yet recent ophthalmologic research suggests that the medical applications of stem cells hold notable promise for the treatment of ocular degenerative conditions and that realization of this potential may come about in the near future.”

I think Dr. Morrow’s thoughts eloquently sum up the subject. Stem cell research is politically charged but holds tremendous promise for the future, especially in ophthalmology.

What are Stem Cells?
Every organ and tissue in our bodies is made up of specialized cells that originally come from a pool of stem cells in the very early embryo (“embryonic stem cells”). Throughout our lives we rely to a much more limited degree on rare deposits of stem cells in certain areas of the body (“adult stem cells”) to regenerate organs and tissues that are injured or lost, such as our skin, our hair, our blood and the lining of our gut.

Stem cells are like a blank microchip that can be programmed to perform particular tasks. Under proper conditions, stem cells develop or “differentiate” into specialized cells that carry out a specific function, such as in the skin, muscle, liver, or in the eye. Additionally, stem cells can grow extensively without differentiating and give rise to more stem cells...

To read the full article, please visit - http://irvaronsjournal.blogspot.com/2010/09/primer-on-use-of-stem-cells-in.html

Kenneth Aldrich, Chairman and Co-Founder of International Stem Cell Corporation will be making two public appearances this week on behalf of ISCO.

On Monday, September 13, 2010, Mr. Aldrich will be speaking as part of a panel at the Stem Cells USA & Regenerative Medicine Congress in Philadelphia, discussing the topic, "Autologous vs. Allogeneic Business Models".
On Wednesday, September 15, 2010 at 9:35AM EDT, Mr. Aldrich will present at the Rodman and Renshaw Annual Global Investment Conference in New York. The webcast can be viewed live at: http://www.wsw.com/webcast/rrshq18/isco.ob. The presentation will be archived and viewable at the same link for 90 days. After the Rodman and Renshaw Conference, a link to the presentation will also be posted to the ISCO website, http://www.internationalstemcell.com.

Notes from The Chairman Concerning ISCO Price Fluctuations

As a matter of policy, we at ISCO refrain from commenting on movements in the price of our stock. However, events yesterday were so unusual and have resulted in so many questions, that I think it is our duty to our shareholders to tell you what we know.

As best we can determine, Patrick Cox, who has been and continues to be a strong supporter of our company, was required yesterday by his publisher to cease coverage of our stock and issue a sell recommendation because he has an equity interest in a company with which we do business that could have been perceived as a conflict of interest. That has resulted in numerous negative comments on investor message boards that referred to the sell recommendation without giving the background or a full explanation. As a result, I felt it was important that we put the day's events into proper context. The following are what I believe to be the relevant excerpts from Patrick's article:

As you know, I've been a huge promoter of International Stem Cell Corp.'s (OTCBB: ISCO) parthenogenic stem cell technology. I've not only told you about the company, but I appeared on John Mauldin's podcast show with ISCO board chairman Ken Aldrich about six months ago. Aldrich and Mauldin subsequently became friends and found that their organizations were a perfect fit for marketing ISCO's cosmeceutical skin care product.

John Mauldin asked me to be a part of that organization. We looked hard at Agora Financial's policies as well as applicable SEC regulations and concluded that there would be no conflict of interest because the position gave me no direct interest in ISCO or its stock price....

My publisher, however, has grown increasingly uncomfortable with this arrangement. The reason is not that Agora Financial believes that there would be an actual conflict of interest. Rather, it is that it might be perceived as one by some, in particular SEC lawyers....

My publisher's trading policy's aim, however, is to keep me purely objective and disinterested. This policy is debatable, but I respect it. My only option, therefore, is to issue a sell order or face the wrath of a disappointed spouse.

You can probably guess what that means. I'm going to have to issue a sell order.

Patrick followed that with a supplement, in which he said, in part,

Just to re-iterate, now that I've seen the price action from this afternoon's sell alert, I'm not parting with the shares of International Stem Cell Corp. (OTCBB: ISCO) because I believe they are a bad investment (my feelings, as you probably know, are quite the opposite)...ISCO still has the transformational potential that I've told you about. The only real change is that I won't be able to update you from here on out -- due to an over abundance of caution from my publisher.

Obviously, we can't know for certain if these articles caused the price movement yesterday, but we believe they were a major factor. Moreover, the comments and the response of investors to them are beyond our control, but we do want to reassure all interested parties that there is no information of which we are aware to justify the price fluctuation that occurred yesterday.

I hope this will prove helpful.

Sincerely,

Ken Aldrich

Chairman

FORWARD-LOOKING STATEMENTS:

Statements pertaining to anticipated developments, the potential benefits of collaborations, affiliations, and other opportunities for the company and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates,") should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of potential products and the management of collaborations, regulatory approvals, need and ability to obtain future capital, application of capital resources among competing uses, and maintenance of intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements and as such should be evaluated together with the many uncertainties that affect the company's business, particularly those mentioned in the cautionary statements found in the company's Securities and Exchange Commission filings. The company disclaims any intent or obligation to update forward-looking statements.

More about salinomycin

New mission for salinomycin in cancer by Cord Naujokat, SciTopics, July 15, 2010. Excerpt (in the "continue reading" section):

In addition, a very recent study demonstrates that salinomycin overcomes ATP-binding cassette (ABC) transporter-mediated multidrug and apoptosis resistance in human leukemia stem cell-like cells (3).

Reference #3: Salinomycin overcomes ABC transporter-mediated multidrug and apoptosis resistance in human leukemia stem cell-like KG-1a cells, by Dominik Fuchs and 4 co-authors, including Cord Naujokat, Biochem Biophys Res Commun 2010(Apr 16);394(4): 1098-104 [Epub 2010(Mar 27)][PubMed citation].

Comments: Near the end of this article about salinomycin is the comment that "the investigation of its safety, toxicity, pharmacology and anticancer activity in humans will be a challenge." The author then mentions a preliminary study of "a small cohort of patients with metastatic breast cancer or metastatic head and neck cancers". The results of this preliminary study of the toxicity of salinomycin are summarized. They have not yet been published in the peer-reviewed literature, although a manuscript has been submitted [see reference #4 in the article]. The implication of these preliminary results is that there may be a "therapeutic window" for salinomycin, that is, a drug dosage that yields clinically significant benefits in the absence of excessive toxicity.

For a previous commentary on salinomycin, see: Cancer stem cell breakthrough by Kat Arney, Science Update blog, Cancer Research UK, August 14, 2009. Excerpt:

We need to stress that these were laboratory experiments, and there is no evidence yet that salinomycin can treat cancer in humans. Salinomycin is currently used as an antibiotic for chickens and cows, and it can be toxic or even fatal to humans, causing serious muscle and heart problems.

If there is a "therapeutic window" for salinomycin, it could be a small one, and is likely to vary from one tumor to another.

For a previous post to this blog about salinomycin, see: Identification of selective inhibitors of breast CSCs in mice, August 14, 2009.

Disagreement about melanoma CSCs

The Evolving Science of Cancer Stem Cells by Carmen Phillips, NCI Cancer Bulletin 2010(Jul 27); 7(15). Excerpt:

Researchers from Stanford University earlier this month reported in Nature that they had found a marker, CD271, that identified a somewhat unique population of cells that could produce melanoma in highly immunocompromised mice; anywhere from 2.5 percent to 41 percent of cells in their human tumor samples expressed the marker. In additional experiments using similar mice on which human skin was engrafted, only tumor cells with the marker could produce tumors and metastases in the mice. (In his lab, Dr. Morrison noted, the same marker did not differentiate tumor-forming from nontumor-forming cells.)

The publication about CD271 is: Human melanoma-initiating cells express neural crest nerve growth factor receptor CD271 by Alexander D Boiko and 11 colleagues, Nature 2010(Jul 1); 466(7302): 133-7. [PubMed citation].

Comments: The sentence: "In his lab, Dr. Morrison noted, the same marker did not differentiate tumor-forming from nontumor-forming cells" is noteworthy. Why the difference in results for CD271?

The publication by Boiko and co-authors was cited in a previous post to this blog, "Melanoma-initiating cells identified", dated July 1, 2010.

See also an earlier post to this blog, "Tumorigenic cells not rare in human melanoma", dated December 3, 2008.