San Diego Makes Stem Cells a Rallying Cry for New Era in Life Sciences

It has been seven years since the Bush Administration restricted federal funding on human embryonic stem cells, and four years since California voters responded by passing Proposition 71. The initiative jump-started stem cell research here by providing $3 billion in state funding for “regenerative medicine” over the next decade.

Since then, the term “stem cells” has become a rallying cry in San Diego for a new wave of industrial development in the life sciences.

So as several hundred biomedical researchers and others gathered Friday for San Diego’s third annual “Stem Cell Meeting on the Mesa,” a sense of expectation, anticipation, and even germination filled the air. “We’re talking about the dawn of a new era in how we replace hearts and kidneys, muscle and liver,” says Babak Esmaeli-Azad, president of privately held DNAmicroarray in San Diego.

While it is not yet clear exactly how stem cell research can be commercialized, Esmaeli-Azad and others already have moved to provide research tools—the so-called shovels and blue jeans—to the scientists panning for gold.

DNAmicroarray provides proprietary systems for controlling the differentiation of human stem cells. But Esmaeli-Azad says he also has personally invested $2 million on internal stem cell research for potential therapies.

“We did not do any stem cell business three years ago,” Esmaeli-Azad says. But now, with a new U.S. president preparing to take office and state funding flowing from Prop 71 through the California Institute for Regenerative Medicine, Esmaeli-Azad says he expects some big changes in the field. “So I am here as a very interested and excited stem cell researcher, but also as a very cautious businessman,” Esmaeli-Azad said.

The one-day forum at the Salk Institute was coordinated by the Sanford Consortium for Regenerative Medicine, an umbrella organization that includes stem cell researchers from Salk, the Burnham Institute for Medical Research, The Scripps Research Institute and UC San Diego. The consortium happily renamed itself in September, after announcing a $30 million donation from South Dakota philanthropist T. Denny Sanford. Sanford’s funding has been combined with a $43 million grant in Prop 71 funding to build a four-story facility on North Torrey Pines Mesa for research in regenerative medicine. The new research center is expected to open by 2010, with groundbreaking set to begin this January.

Funding from Prop 71 also is expected to be available to biotech startups in the form of loans early next year to support the commercialization of stem cell research, said Floyd Bloom, a neuroscientist and professor emeritus at The Scripps Research Institute. “Venture capital at the moment doesn’t happen to believe that stem cells are going to be a viable business, so we think the loan program will really help move the commercialization process along,” said Bloom, who sits on a citizens committee overseeing the allocation of Prop 71 funds.

Sponsors of the conference range from established behemoths such as Invitrogen, the Carlsbad maker of laboratory research tools, to San Diego startup Histogen and Boston, MA-based Stemgent, which have also targeted stem cell researchers.

Histogen, founded last year, provides a human extra-cellular matrix that can be used to grow stem cell lines. Stemgent, founded earlier this year, has almost 40 employees in Boston and San Diego developing specialized antibody panels, cytokine kits, and other research tools.

Duane Roth, the chief executive of Connect (and a San Diego Xconomist), says this year’s Stem Cell Meeting on the Mesa was organized to focus on research in four specific areas: heart disease, neurodegenerative disease, diabetes, and cancer.

A keynote presentation by Harvard’s Kenneth Chien, for example, outlined recent progress in identifying the primogenitor heart cells and the myriad ways in which they differentiate into different types of heart cells. He also showed how it may someday be possible to use stem cells to grow new heart tissue on a thin film membrane that could be used as a graft to repair damaged heart tissue.

Like many others, Roth is encouraged by San Diego’s progress so far. As he put it, “We’re a lot farther along than we thought we’d be.”

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.