FIRM WILL SEEK FUNDING FROM STEM-CELL INSTITUTE
The San Jose Mercury News
A fundraising foundation has received a $3,000 donation for California’s stem-cell institute from an executive of a Bay Area stem-cell company, drawing criticism from a consumer activist for a potential conflict of interest.
The small company, Burlingame-based VistaGen Therapeutics, plans to seek research money from the institute. The donation came from VistaGen’s chief executive, Ralph Snodgrass, as part of a fundraising event held in May by the San Francisco Foundation on behalf of the stem-cell institute, known as the California Institute for Regenerative Medicine.
Officials with the stem-cell institute insist there was nothing wrong with the gift.
The institute, created when voters approved Proposition 71 in 2004, is authorized to spend $3 billion on stem-cell research. But lawsuits have blocked it from using that money, forcing it to obtain private donations to keep operating.
Snodgrass, whose company is trying to grow genetically modified stem cells to help identify promising drugs for diabetes and other ailments, said the donation was his own money, not VistaGen’s. Although he hopes to obtain a research grant from the institute, he says he saw nothing questionable about the contribution.
“It was a personal gift from me; it had nothing to do with our company,” he said. “I’ve been a strong supporter of stem-cell research.” He added that he didn’t believe his gift would influence the institute if he asks the agency for a grant.
The institute’s board is considering whether to adopt a policy that forbids cash gifts from “an institution, entity or individual” that has applied for an institute’s grant or intends to do so.
Even so, institute officials said they saw nothing wrong with Snodgrass’ donation, because he gave it to the San Francisco Foundation, which is giving it to the institute.
“There is no conflict here,” said the institute’s spokeswoman, Nicole Pagano. “The good people of San Francisco organized an event to help the (institute) survive the litigation.”
She added, “A non-profit makes a gift to a public agency, which is perfectly within state law. Proposition 71 expressly allows for this.”
Pagano, who said she didn’t know how much money overall was raised at the event, added that the institute has established policies to ensure its research grants will be given only for sound scientific reasons.
But John Simpson of the Foundation for Taxpayer and Consumer Rights said he found the contribution troubling.
“It doesn’t seem to me to be an appropriate thing to be giving money,” he said, “if you are going to be asking for grants.”
Simpson said it’s unclear whether others who might seek institute grants also contributed to the fundraiser. He noted that the institute has released a list of contributors to the fundraising event, but it doesn’t say how much was given or provide additional information about the donors’ occupations or business connections.
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Contact the author Steve Johnson at: [email protected] or (408) 920-5043.
