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Highlights need for effective conflicts policy, public interest group says

Seven members of the governing board of California's new stem cell research program have significant business connections with companies connected to stem cell research. According to research released today by the Center for Genetics and Society, these relationships include substantial equity investments and board memberships, and may pose personal financial conflicts of interest.

"Managing $3 billion in taxpayer money is an enormous responsibility, and it should not be done by those who have a personal financial stake in how it is used," said Marcy Darnovsky, associate executive director of the Center. "The board must adopt strong, enforceable provisions against personal conflicts of interest to retain the confidence of the voters."

The governing board of the California Institute for Regenerative Medicine will meet tomorrow in Los Angeles. On the agenda is consideration of conflict of interest policies for the board, the Independent Citizens' Oversight Committee.

"The proposed conflicts policy sounds good on first reading, but all it really requires is disclosure and self-recusal," asserted Jesse Reynolds, program director at the Center. "Because of mutual understandings among board members based on longstanding relationships and financial interests, real oversight would be almost impossible. That's why we support divestment, not disclosure."

According to the Center's research, ICOC vice-chair Edward Penhoet and members David Baltimore, Tina Nova, Gayle Wilson, Keith Black, John Reed, and Brian Henderson have investments and/or leadership positions in companies which are or have been involved in stem cell research. For example, Baltimore is on the board of directors of Amgen, and owns between $100,000 and $1 million dollars of its stock. A recent Forbes.com article titled "Amgen Profits From Stem Cell IPO" details a strategic relationship between Amgen and ViaCell, a stem cell company.

"Personal interests in stem cell research are just part of the problem. All investments by board members in biomedical companies raise concerns," Darnovsky asserted. "The Institute is permitted to fund any biomedical research."

Recent conflict of interest scandals have rocked the Food and Drug Administration and the National Institutes of Health. The latter has now adopted tough policies. The Center has argued that the board should adopt similar policies, which generally prohibit its leadership from having any biomedical investments from which they may benefit. California Senators Deborah Ortiz and George Runner have introduced a reform package that, among other things, would establish a "commensurate" policy at the Institute.

The Institute was created last November when voters passed Proposition 71, which authorizes $3 billion in bonds for grants to support stem cell and other biomedical research. The Center for Genetics and Society supports embryonic stem cell research and its public funding, but opposed Proposition 71.

Details of the Center's initial research can be found at:
http://www.genetics-and-society.org/policies/california/conflicts.html

Contact: 
Marcy Darnovsky
510-625-0819 x305

Jesse Reynolds
510-625-0819 ext 308