From CEO to Financial: Risks in California's Multibillion-Dollar Stem Cell/Genetic Research Program

CIRM identifies uncertainties involved in its efforts

Word cloud graphic derived from CIRM risk report

High-level management changes, a poor financial environment for biomedical start-up businesses and high interest rates are all current risks for the $12 billion California stem cell and gene therapy program. 

The California Institute for Regenerative Medicine (CIRM) self-identified them in a report to the legislature and the state Department of Finance. A state law aimed at reducing fraud, errors, waste and abuse of government funds requires the biennial Leadership Accountability Report. 

The latest report, dated Dec. 27, 2023, identified four risks: 

• “New chair and vice chair of the board,” which can lead to “changes in strategy and policy” that “could confuse and affect CIRM employees”

• “CIRM president and CEO resigned in November of 2023,” which “will impact leadership of the employees in the short term and future strategic planning”

• “Economic environment has made fund-raising harder for life science start-up companies,” which has generated more applications for awards and pressure on CIRM staff that is capped by state law

• “Higher interest rate affects bonds under Proposition 14,” reducing funds available to CIRM, which currently has to bear the interest costs.

How successfully CIRM addresses these issues and more will affect researchers and patients hoping for revolutionary stem cell and gene therapies.