New Gold Rush as California Invests $800 Million in Stem Cell Lab Construction

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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--Just over 160 years ago, the discovery of gold in California set off the California Gold Rush. Hundreds of thousands of people flocked to the state, arriving by stagecoach, horseback and sailing ships. Known as the "forty-niners," many of those early pioneers faced down seemingly insurmountable odds to claim their fortunes. Now fast forward to the present day, and once again the hardy denizens of the state have proven that nothing can stand in their way. Although the Bush administration cut federal funding for the majority of stem cell research in 2001, the Golden State's resounding answer is nearly $800 million earmarked for investment for new stem cell lab construction projects. The dual hope is that along with scores of medical breakthroughs, the sheer size of such a massive gathering of targeted science in one state will attract and spur new commercial business development.

Click on the image at right for list of stem cell lab projects in California.

The genesis of California's ambitious stem cell construction initiative began with the passage in November 2004 of Proposition 71, which allocated $3 billion for stem cell research at both state universities and nonprofit research institutions. Shortly thereafter, the California Institute for Regenerative Medicine (CIRM) was founded as an overseer and to disperse the funds, of which $271 million was designated for new lab construction. Earlier this year, following a detailed application and review process, 11 institutions in the state received funding for the construction of new research labs. A condition of the grant is that each recipient must raise at least 20% of their grant in matching funds. The current total investment value (TIV) of the 11 projects is $796 million, resulting in a project average TIV of $72 million.

Although California is not the only state in the Union with state-supported stem cell research, it is by far the most aggressive and organized in its quest. All of the projects are on a fast track as the state has mandated that the labs be completed by 2010. Many have already signed up teams of architects, contractors and engineers, while others are in contract negations (Project data source: Pharmaceutical Tracker).

Stanford University and its School of Medicine received $43.6 million -- the largest grant awarded -- from the CIRM and are using it to construct the $200 million Stanford Institutes of Medicine 1 (SIM1) Stem Cell Building. Designed by Zimmer Gunsul Frasca Architects LLP (ZGF) (Portland, Oregon), the building's construction is being handled by the Whiting-Turner Contracting Company (Pleasanton, California). SIM1 will provide 200,000 gross square feet for the Stanford Institute for Stem Cell Biology and Regenerative Medicine, the Stanford Cancer Center and the Neuroscience Institute at Stanford. The University of California Berkeley received $20 million, which will be used as part of a $78 million investment in stem cell lab construction. The stem cell lab facility, another ZGF design, will be built into two floors of the five-story, 200,000-square-foot Li Ka-Shing Center for Bio & Health Sciences, a project with a TIV of $160 million. The San Francisco office of McCarthy Building Companies is handling construction.

Like the "forty-niners", the participants and proponents of the program are seen by some as dreamers with little in the way of reality to base their actions on. The elusive goal of curing the currently incurable can appear as far-fetched as striking a rich vein of gold. The state may well be on to something. There were plenty in the first gold rush that made their fortunes from the shiny nuggets, but the real money came from the supporting industries, as demands for food, housing and supplies propelled the new state's economy. On many levels, the entire stem cell issue is a minefield with arguments invoking faith, morals and science. Will the companies come as the cures unfold? It is truly impossible to determine the actual return on investment at this point. But, no matter one's feeling about the issue, research is an absolute when seeking a cure to any ailment. With so many keen minds gathered in an array of laboratories outfitted with the latest equipment engaged in previously unparalleled interdisciplinary research efforts encompassing many fields, it is not such a stretch to imagine a few shouts of "Eureka!" in the future.

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