{"id":129283,"date":"2013-02-17T02:53:39","date_gmt":"2013-02-17T07:53:39","guid":{"rendered":"https:\/\/www.immortalitymedicine.tv\/no-improper-influence-cirm-defends-no-actual-conflicts-claim\/"},"modified":"2024-08-17T20:31:00","modified_gmt":"2024-08-18T00:31:00","slug":"no-improper-influence-cirm-defends-no-actual-conflicts-claim-3","status":"publish","type":"post","link":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/stem-cell-therapy\/no-improper-influence-cirm-defends-no-actual-conflicts-claim-3.php","title":{"rendered":"No Improper Influence: CIRM Defends &#8216;No Actual Conflicts&#8217; Claim"},"content":{"rendered":"<p><span>Earlier<br>this month the <b>California Stem Cell Report<\/b> &nbsp;<a href=\"http:\/\/californiastemcellreport.blogspot.com\/2013\/02\/debunking-stem-cell-agency-claims-of-no.html\">published an item that said<\/a>:<\/span><\/p><blockquote><p><span>&ldquo;In<br>the wake of recent considerable criticism concerning conflicts of<br>interest at the $3 billion California stem cell agency, its leaders<br>have taken to saying 'no actual conflicts' have been found at the<br>agency.<\/span><\/p><\/blockquote><blockquote><p><span>&ldquo;That<br>assertion is simply not true.&rdquo;<\/span><\/p><\/blockquote><div><span>We<br>asked the stem cell agency if it would like to respond and said that<br>its response would be carried verbatim. The agency's comments are below. Our<br>take on the response follows the CIRM comments, which were authored<br>by <b>Kevin McCormack<\/b>, the agency's senior director for public<br>communications and patient advocate outreach.<\/span><\/div><p><\/p><div><i><span>In<br>David Jensen&rsquo;s recent blog about the stem cell agency he claims to<br>&ldquo;debunk&rdquo; claims that there have been no actual conflicts in<br>CIRM&rsquo;s funding decisions saying &ldquo;the agency has a long history of<br>problems involving conflicts of interest, 'actual' and otherwise.&rdquo;<br>In fact, in the cases cited by Mr. Jensen, show 'otherwise' is the<br>appropriate word here because as we&rsquo;ll show CIRM&rsquo;s conflict<br>procedures worked and the funding decisions were not affected by any<br>improper influence.<br><\/span><\/i><\/div><div><i><span>Let&rsquo;s<br>take it case by case, looking at each instance of a &ldquo;conflict&rdquo;<br>cited by Mr. Jensen.<\/span><\/i><\/div><div><i><span>John<br>Reed<\/span><\/i><\/div><div><i><span>In<br>2007, John Reed, a member of the stem cell agency&rsquo;s Governing<br>Board, contacted staff in his capacity as the president of the<br>Burnham Institute after the Board approved a SEED grant award to a<br>Burnham investigator.  Dr. Reed did not participate in the Board&rsquo;s<br>decision to approve the award and played no role in that decision.<br>All he did was send a letter to CIRM staff after the Board meeting to<br>provide factual information in response to technical questions raised<br>by CIRM staff concerning the investigator&rsquo;s eligibility for an<br>award. Those questions ultimately led staff to reject the grant.<br>Because the Board had already made the decision to award the grant,<br>it did not occur to Dr. Reed that the conflict rules would prevent<br>him from contacting staff to provide relevant information. And why<br>would it? The decision was made so there was nothing to influence.<br>After CIRM staff received Dr. Reed&rsquo;s letter, they informed Dr. Reed<br>that he must refrain from participating in any way in CIRM's<br>consideration of the Burnham grant.  In addition, CIRM staff did not<br>consider the letter in conducting their administrative review of the<br>Burnham grant and their determination that the investigator was not<br>eligible did not change.  The FPPC determined that, although Dr.<br>Reed&rsquo;s conduct raised ethical concerns, he had not violated<br>conflict of interest laws because he attempted to influence a<br>decision that had already been made.  Furthermore, Dr. Reed&rsquo;s<br>conduct did not affect a CIRM funding decision because the grant was<br>rejected by CIRM staff.<\/span><\/i><\/div><div><i><span>New<br>Faculty Awards<\/span><\/i><\/div><div><i><span>When<br>a candidate applies for a CIRM New Faculty Award it is standard<br>practice for them to include a letter of support from the institution<br>where they hope to be working. In December 2007, during a review of<br>applications for New Faculty Awards, CIRM staff discovered that ten<br>applications were accompanied by letters of institutional support<br>signed by members of the Board. This was due to a miscommunication by<br>staff, a poorly drafted memo to Board members leading them to think<br>it was OK to sign the letters of institutional support. The error was<br> discovered before the Board considered any of the applications. CIRM<br>staff determined that the letters could be perceived to create a<br>conflict of interest and so, to avoid even the appearance of a<br>conflict, CIRM staff disqualified the ten applications.  As a result,<br>the applications were not presented to the Board for its<br>consideration, thereby avoiding any potential for a conflict of<br>interest in a funding decision.<\/span><\/i><\/div><div><i><span>John<br>Sladek<\/span><\/i><\/div><div><i><span> In<br>2011, while preparing the public summary for Basic Biology III<br>applications, CIRM staff discovered that Dr. John Sladek was one of<br>several co-authors on scientific publications with a researcher who<br>was listed as a consultant on a CIRM grant application.  This is a<br>technical violation of the Grants Working Group (&ldquo;GWG&rdquo;) conflict<br>policy, which prohibits a member of the GWG from participating in the<br>review of an application if the member has co-authored papers with a<br>salaried investigator listed on a CIRM application within a three<br>year window.  It should be noted, however, that Dr. Sladek&rsquo;s<br>participation in the review of the application would not have<br>constituted a conflict of interest under state conflict of interest<br>laws because Dr. Sladek did not have a financial interest in the<br>application.  In addition, the amount of funding involved &ndash;<br>approximately $3,000 of salary per year for three years, less than<br>one percent of the total award &ndash; was not material, and Dr. Sladek<br>did not stand to receive any financial benefit from the application.<br>Finally, Dr. Sladek&rsquo;s participation in the review did not affect<br>the outcome because the application was not recommended, or approved,<br>for funding.<br><\/span><\/i><\/div><div><i><span> The<br>three instances cited by Mr. Jensen share two common features.<br>First, CIRM staff identified the potential for a conflict before any<br>funding decision was made.  Second, CIRM&rsquo;s funding decisions were<br>not affected by any improper influence.<\/span><\/i><\/div><div><i><span> Ted<br>Love<\/span><\/i><\/div><div><i><span> Mr.<br>Jensen also cites the service of Dr. Ted Love, a member of the Board<br>who volunteered his time to assist CIRM in offering his scientific<br>and medical expertise, as evidence of a conflict of interest.<br>Although Mr. Jensen insinuates that Dr. Love&rsquo;s service constituted<br>a conflict of interest, he does not cite any facts, except Dr. Love&rsquo;s<br>&ldquo;deep connections to the biomedical industry.&rdquo;  But the fact that<br>Dr. Love has experience in the biotech industry does not constitute a<br>conflict of interest, and as a member of the Board and as a volunteer<br>to CIRM, Dr. Love abided by CIRM&rsquo;s conflict of interest policies.<br><\/span><\/i><\/div><div><i><span>In<br>the past Mr. Jensen has criticized the stem cell agency for its lack<br>of connections and engagement with industry. In this case he<br>criticizes us precisely because of our connection and engagement with<br>someone who has industry experience.<br><\/span><\/i><\/div><div><i><span> Venture<br>Capital Firm<\/span><\/i><\/div><div><i><span>Mr.<br>Jensen also suggests that a conflict of interest arose from the fact<br>that &ldquo;iPierian,Inc., whose major investors [a venture capital firm]<br>contributed nearly $6 million to the ballot measure that created the<br>stem cell agency, has received $7.1 million in awards from the<br>agency.&rdquo;  While it is true that Proposition 71 involved a<br>multi-million dollar campaign, the funding for the campaign came<br>primarily from individuals who had a family member who suffered from<br>a chronic disease or injury, including individuals associated with a<br>venture capital firm.  The firm itself did not contribute to the<br>campaign, nor did the campaign accept contributions from<br>biotechnology or pharmaceutical companies.  Furthermore, the venture<br>capital firm did not invest in a CIRM grantee; rather, it invested in<br>a different company which subsequently merged with yet another<br>company to form an entity that later applied for, and was awarded a<br>CIRM grant.<br><\/span><\/i><\/div><div><i><span>Stem<br>Cells, Inc.<\/span><\/i><\/div><div><i><span>Mr.<br>Jensen cites CIRM&rsquo;s award to Stem Cells, Inc. as another source of<br>a conflict.  In support of this claim, Mr. Jensen&rsquo;s references Bob<br>Klein&rsquo;s support of the award, as well as the fact that Irv<br>Weissman, PhD, appeared in an ad for Proposition 71 in 2004.<br>However, neither Mr. Klein&rsquo;s support for the award nor Dr.<br>Weissman&rsquo;s support for Proposition 71 constitutes a conflict of<br>interest.  First, Mr. Klein, like any member of the public, has the<br>right to express his views to the Board.  The state&rsquo;s revolving<br>door laws do not apply to a former member of the Board who, like Mr.<br>Klein, is not compensated for making an appearance.  As for Dr.<br>Weissman&rsquo;s support for Proposition 71, nothing in state law<br>prohibits a member of the public from seeking CIRM funding even<br>though he supported the measure during the campaign.  In fact, it<br>would be reasonable to expect that most stem cell scientists in<br>California (and elsewhere) supported Proposition 71.  Disqualifying<br>individuals from receiving funding because they supported the law<br>would leave few, if any, eligible applicants.<\/span><\/i><\/div><div><i><span>Allegation<br>of Conflict at Board Meeting<\/span><\/i><\/div><div><i><span>As<br>further evidence of an &ldquo;actual conflict&rdquo;, Mr. Jensen cites<br>another instance in 2008 in which a representative of a for-profit<br>applicant publicly complained at a Board meeting that a member of the<br>GWG had a conflict of interest &ldquo;from a business perspective.&rdquo;  As<br>provided for by CIRM&rsquo;s regulations, the applicant had filed an<br>appeal, claiming that the reviewer had a conflict of interest because<br>he had a financial relationship with another company that was not an<br>applicant for CIRM funding.  CIRM&rsquo;s legal counsel reviewed the<br>appeal and determined that there was no conflict of interest under<br>CIRM&rsquo;s policy.<\/span><\/i><\/div><div><i><span>Saira<br>Ramasastry and Laurence Elias<\/span><\/i><\/div><div><i><span> Mr.<br>Jensen cites two instances in which CIRM&rsquo;s hired consultants in<br>support of his claim that CIRM has &ldquo;actual conflicts of interest.&rdquo;<br> In 2010, CIRM retained a partner at Life Sciences Advisory, LLC,<br>Saira Ramasastry, to assist CIRM&rsquo;s External Advisory Panel, which<br>completed its work in December 2010.  In 2012, Sangamo BioSciences,<br>Inc., nominated Ms. Ramasastry to serve on its Board of Directors.<br>Although Ms. Ramasastry continued to provide some consulting services<br>to CIRM through fiscal year 2011-12, none of her work for CIRM<br>involved Sangamo or any CIRM program in which it was involved.  Ms.<br>Ramasastry&rsquo;s services on behalf of CIRM did not create any conflict<br>of interest.  The same is true of the second instance cited by Mr.<br>Jensen.  In 2010, CIRM hired Dr. Laurence Elias, a former Geron<br>employee and an accomplished clinical development professional, to<br>provide CIRM with technical and regulatory input to ensure that the<br>clinical elements of an RFA were technically complete and accurate.<br>The concept for RFA had already been approved and as such Dr. Elias<br>was not in any position to influence the overall scope or structure,<br>nor did he have any role in evaluating applications.  CIRM staff and<br>Dr. Elias complied with all conflict of interest requirements.<br>Neither contract led to an &ldquo;actual conflict of interest&rdquo;.<\/span><\/i><\/div><div><i><span> Diane<br>Winokur<\/span><\/i><\/div><div><i><span> Mr.<br>Jensen&rsquo;s laundry list of &ldquo;conflicts&rdquo; also includes a reference<br>to the recent appointment of Diane Winokur to serve on CIRM&rsquo;s<br>Board.  Mr. Jensen quotes a representative of the ALS Association who<br>said that Ms. Winokur will be &ldquo;a tremendous asset in moving the ALS<br>research field forward through CIRM funding.\"  Of all the<br>insinuations made in his blog this is perhaps the cheapest shot,<br>taking aim at a woman who has dedicated her life to fighting a deadly<br>disease, one that claimed the lives of her two sons. Mr. Jensen knows<br>very well that the ALS Association does not speak for Ms. Winokur or<br>CIRM and while we expect that Ms. Winokur will bring her expertise as<br>an advocate for people suffering from ALS to the Board, she, like all<br>members of CIRM&rsquo;s Board, represents all Californians, not just<br>those suffering from a particular disease.  Ms. Winokur&rsquo;s<br>appointment does not create a conflict of interest.<\/span><\/i><\/div><div><i><span> Press<br>Releases<\/span><\/i><\/div><div><i><span> Finally,<br>Mr. Jensen cites a Board debate from 2006 involving a requirement in<br>CIRM&rsquo;s intellectual property regulations regarding press releases.<br>Under Health and Safety Code section 125290.30(g)(1)(C), the<br>discussion of standards does not create a conflict of interest, and<br>the Board&rsquo;s debate was enriched by the participation of members who<br>brought their expertise and experience to bear.<\/span><\/i><\/div><div><i><span>Mr.<br>Jensen says that one of the reasons why the IOM did not report any<br>instances of conflict of interest in its report is that it did not<br>look for any conflicts of &ldquo;inappropriate behavior,&rdquo; But Mr.<br>Jensen was present in the public hearing at UC Irvine in April of<br>2012 when the IOM panel asked Stuart Drown, Executive Director of the<br>Little Hoover Commission that also looked into allegations of<br>conflict of interest at CIRM, if he could cite any actual instances.<br>Mr. Drown said he could not. Nor did Mr. Jensen offer any when it was<br>his turn to talk.<\/span><\/i><\/div><p><\/p><div><span><br><\/span><br><span>The view from the California Stem Cell Report:<\/span><\/div><div><span>Generally<br>speaking, CIRM's response about &ldquo;actual&rdquo; conflicts of interests<br>is a reiteration of what the California Stem Cell Report carried at<br>the time of each incident and does not add much new to the discussion<br>of the issues. All of the agency's earlier responses could be found in<br>the links in the &ldquo;debunking&rdquo; piece. Additionally the agency<br>confuses what are clearly actual conflicts with other instances that<br>could involve either actual or perceived conflicts, which the IOM<br>noted can be as deadly as the real thing.&nbsp;However,<br>in the most egregious cases involving Reed and later the five medical<br>school deans, the agency would like the public to believe that these<br>were not serious matters because the staff detected and caught the<br>conflicts before the grants were made.<br><\/span><\/div><div><span>That<br>is like saying a burglar who was caught in the act before he escaped<br>with his booty committed no offense.<br><\/span><\/div><div><span>The<br>acts were committed by members of the CIRM board, and they were<br>violations of conflict of interest standards. In the case of<br>the five deans, that is why the agency voided 10 applications<br>totaling $31 million from their five institutions. If there had been<br>no actual conflict of interest, that would not have been necessary.<br><\/span><\/div><div><span>As<br>for blaming the staff for &ldquo;miscommunications,&rdquo; the applications<br>that the five deans signed were quite clear and offered them the<br>option of having another person at their institution sign the grant<br>proposal. Other deans on the board did not sign applications in the<br>same round. Those applications were then handled in the normal<br>fashion. One might ask how in the world could the head of a medical<br>school who was also serving on the CIRM board NOT recognize a<br>conflict of interest when asked to sign a request for cash from the<br>board on which he served?<br><\/span><\/div><div><span>Regarding<br>John Reed and his conflict of interest violation, both he and then<br>CIRM Chairman <b>Robert Klein <\/b>have acknowledged Reed's actions<br>were wrong. Klein, an attorney who directed the writing of the<br>10,000-word measure that created CIRM, advised Reed to contact CIRM<br>staff to lobby on behalf of a grant that was approved by the board<br>but was about to be denied by staff.(See <a href=\"http:\/\/www.sfgate.com\/bayarea\/article\/State-stem-cell-board-member-asked-to-quit-over-3234433.php\">here<\/a>, <a href=\"http:\/\/www.consumerwatchdog.org\/newsrelease\/stem-cell-chairman-robert-klein-and-oversight-board-member-john-reed-must-resign-because\">here<\/a> and <a href=\"http:\/\/californiastemcellreport.blogspot.com\/2007\/11\/conflicts-and-klein-fallout-from-bad.html\">here<\/a>.)<\/span><\/div><div><span>CIRM's<br>response contends that Reed's 6 &frac12; page letter was nothing more than<br>&ldquo;factual&rdquo; information dealing with technical matters. That is<br>hardly the case. In fact, Reed <a href=\"http:\/\/www.the-scientist.com\/?articles.view\/articleNo\/25782\/title\/Conflicts-at-Calif--stem-cell-agency\/\">explicitly &ldquo;emphasized&rdquo; (Reed's word)<\/a> that failing to comply with his letter would damage the future<br>of the stem cell agency. Denial of the grant, he said, &ldquo;will surely<br>discourage clinical researchers from participating in the CIRM<br>mission to advance stem cell therapies.&rdquo; &nbsp;&nbsp;<\/span><\/div><div><span>Reed's<br>action was inappropriate,  and the California Fair Political<br>Practices Commission warned Reed about his actions. The journal <b>Nature<\/b> <a href=\"http:\/\/blogs.nature.com\/theniche\/2009\/01\/cirm_board_member_gets_ethics.html\">reported<\/a>,<p><\/p><\/span><\/div><div><blockquote><p><span>&ldquo;California&rsquo;s<br>Fair Political Practices Commission (FPCC) decided that <b>Burnham<br>Institute<\/b> President violated conflict-of-interest rules by writing a<br>letter to the <b>California Institute of Regenerative Medicine<\/b> appealing<br>a decision that an affiliate of his institute was ineligible for<br>funding.&rdquo;<\/span><\/p><\/blockquote><\/div><div><span>The<br>California Stem Cell Report's &ldquo;debunking&rdquo; piece went beyond \"actual\" conflicts to describe other instances where conflicts emerged.<br>Readers can go back to the original links for all the details, but<br>the cases of StemCells, Inc., and iPierian, Inc., are worth reviewing<br>again. Both cases  involve fund-raising efforts that ran into<br>millions of dollars for the ballot measure campaign that created<br>CIRM. The campaign was run by Bob Klein who later became the agency's<br>first chairman, serving for six years and becoming something of a<br>hallowed figure in stem cell circles. One of the principal jobs of a<br>campaign manager is to raise the millions needed to run a successful<br>statewide election campaign in California.  It is common for members<br>of the public to believe that major campaign contributors are<br>rewarded later for their contributions. Whether that was the case in<br>these instances, the reader must decide for himself or herself. But<br>the appearance is less than salubrious for an agency that claims to<br>have never seen an actual conflict of interest as it has handed out<br>$32,000 an hour, 24 hours a day, seven days a week during the last six<br>years.<br><\/span><\/div><div><span>The<br>facts are that about 90 percent of the $1.7 billion awarded by the<br>CIRM board has gone to institutions tied to present and past members<br>of its governing board. The agency, however, does  work hard to be<br>sure legal conflicts do not arise during board action on grant<br>applications, using a voting procedure that is so convoluted that the<br>actual vote on nearly all applications is not even announced at board<br>meetings. Sometimes the procedure means that only a handful of<br>governing board members can participate in debate or vote. In the<br>case of the five medical school deans, as the board struggled to deal<br>with the fallout in 2007, <a href=\"http:\/\/www.wired.com\/medtech\/stemcells\/news\/2007\/12\/cirm_conflicts\">only eight of the 29 members of the board could participate <\/a>in the discussion because the rest had conflicts.<\/span><\/div><div><span>As<br>for CIRM's comments about &ldquo;insinuations&rdquo; and &ldquo;cheap shots&rdquo; by<br>the California Stem Cell Report, we naturally differ with that<br>characterization. The case in point involved what the chief scientist<br>for a patient advocate group said she expected as the result of a<br>recent appointment to the board. The scientist's remarks were offered<br>as example of the type of expectation and entitlement that can arise when governing<br>board members must be picked from specific constituencies, as is the<br>case with all 29 CIRM board members.<\/span><br><span><br><\/span><br><span>And as for my testimony at the IOM hearing last April, <a href=\"http:\/\/www.iom.edu\/~\/media\/Files\/Activity%20Files\/Research\/CIRMReview\/April-Meeting\/Jensen%20410%20testimony.pdf\">here is a link to my statement, which includes a discussion of conflicts of interest. &nbsp;<\/a><\/span><\/div><div><\/div><p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.immortalitymedicine.tv\/wp-content\/plugins\/wp-o-matic\/cache\/65d0d_zwk3dz23Ewc\" height=\"1\" width=\"1\" style=\"padding-left:10px; padding-right: 10px;\">Source:<br><a href=\"http:\/\/feedproxy.google.com\/~r\/blogspot\/uqpFc\/~3\/zwk3dz23Ewc\/no-improper-influence-cirm-defends-no.html\">http:\/\/feedproxy.google.com\/~r\/blogspot\/uqpFc\/~3\/zwk3dz23Ewc\/no-improper-influence-cirm-defends-no.html<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Earlierthis month the California Stem Cell Report &nbsp;published an item that said:&ldquo;Inthe wake of recent considerable criticism concerning conflicts ofinterest at the $3 billion California stem cell agency, its leadershave taken to saying 'no actual conflicts' have been found at &hellip; <a href=\"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/stem-cell-therapy\/no-improper-influence-cirm-defends-no-actual-conflicts-claim-3.php\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":64,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"limit_modified_date":"","last_modified_date":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[25,1246878],"tags":[],"class_list":["post-129283","post","type-post","status-publish","format-standard","hentry","category-stem-cell-therapy","category-stem-cells"],"modified_by":null,"_links":{"self":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts\/129283"}],"collection":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/comments?post=129283"}],"version-history":[{"count":0,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts\/129283\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/media?parent=129283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/categories?post=129283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/tags?post=129283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}