Stem cell agency says meet the new boss, same as the old boss

Jonathan Thomas, the man just named as the new CEO of the $12 billion California stem cell agency, could borrow an old line from Mark Twain. Reports of his “demise” were greatly exaggerated.

Seventeen months ago, Thomas said goodbye to the $12 billion California stem cell agency after serving for more than a decade as chair of its governing board. During that period, he saw two CEOs depart from the program, one of the largest regenerative medicine funding efforts in the world.

But just last week, the 35-member governing board that Thomas once chaired named him as its latest CEO and president. Thomas told the board that the opportunity to work once again to develop treatments for afflictions ranging from cancer to incontinence was a “wonderful, wonderful gift”

Thomas’ appointment comes at a watershed moment in the 19-year history of the California Institute for Regenerative Medicine (CIRM), as the agency is officially known. The stem cell and gene therapy program is in the midst of the first major, public examination of its priorities since its first strategic plan 18 years ago, two years after it was created by a ballot initiative.

The new priorities are likely to play a major role in whether the agency lives or dies. Funding for some areas of research could also shrivel or vanish as CIRM seeks to maximize its impact. Concerned advocates for rare disease research have already submitted a petition for billions in support that carried the signatures of 1,005 persons.

CIRM occupies a rare position in the pantheon of California state departments. The ballot measure that created it also carries its death sentence. “Our funding is finite,” CIRM tells supporters in its priority review documents. The initiative behind CIRM, which totals 17,000 words, provides no funding beyond its remaining $3.9 billion, all of which comes from money borrowed via state bonds. The initiative also complicates CIRM’s possible spending, but it runs about $540 million annually.

If CIRM supporters want to maximize the likelihood of approval of more billions, another ballot measure could come as early as 2028, the next presidential election. Huge bond measures have a better record of success during presidential elections. Even so, winning approval could be a heavy lift. In 2020, CIRM narrowly survived with only 51 percent of voters okaying its refinancing. More than eight million persons voted to let CIRM perish.

“As goes California, so goes the nation, and our new leader will seize the chance to impact the lives of diverse patients and communities far beyond the geographical boundaries of the state.”

One reason is that CIRM’s story is little known in California. News coverage of the enterprise is nearly non-existent. The same conditions existed 13 years ago, when Thomas became chair of CIRM’s governing board. He declared that CIRM was in a “communications war” and needed to mount a “robust” PR campaign to “get its message out.”

Thomas and CIRM supporters believe that the agency has a good story to tell (106 clinical trials, nine Alpha stem cell clinics, and preliminary positive progress in a few gene therapy trials). However, CIRM has failed to fulfill voter expectations that nearly miraculous stem cell cures were right around the corner. Despite the hype of the 2004 ballot campaign that created the agency, CIRM has yet to fund a stem cell therapy that is available to the general public.

With an annual salary of $586,070, Thomas, who was termed out as chair of the agency, is the first non-scientific/non-medical professional to head CIRM as CEO. But his 11 years as chair of the board and familiarity with business could benefit CIRM as it increasingly works with stem cell and gene therapy companies to commercialize research.

Thomas’ path from chair to CEO was not conventional. Thomas returned to the agency in December 2023 as interim CEO after its former president and CEO Maria Millan resigned abruptly last November. She gave no reason for her departure. Some board members commented later that morale problems existed at the agency, among other issues.

CIRM directors brought Thomas on board to steady CIRM temporarily as it embarked on a search for a “permanent” CEO.

“Our next leader will have the opportunity of a lifetime,” said a recruiting brochure. “As goes California, so goes the nation, and our new leader will seize the chance to impact the lives of diverse patients and communities far beyond the geographical boundaries of the state.”

More than 160 people applied for the position. Last week, the three finalists were interviewed behind closed doors, with Thomas emerging as the winner.

Thomas, who is known as JT, had a 26-year career in investment banking. He was a co-founding partner at Saybrook Capital, an investment banking and private equity firm, where he led an early round of financing for Advanced Cell Technology (now Astellas Pharma).

(He disposed of his holdings in the company shortly after being chosen as chair. Astellas has not received any funding from CIRM.)

Thomas holds a B.A. and law degree from Yale and a Ph.D. from Oxford. His dissertation was on the role of disease and medicine in the British expansion into tropical East Africa.

“CIRM’s leadership has the utmost confidence in JT’s ability to lead our agency as we refocus our efforts on the most impactful strategies…,“said the current board chair, Vito Imbasciani, in a news release.

CIRM’s “refocus” was triggered last September when the directors’ Science Subcommittee heard a presentation from its co-chair Mark Fischer-Colbrie.

He raised a number of questions including whether CIRM should fund research only in areas that have “the best potential to do the most good to the most people in the shortest amount of time.”

CIRM is at an “inflection point,” Thomas told directors earlier this year. He accelerated the priority review process, declaring it will determine “how we send our money through the rest of the life” of CIRM.

How long that life will be depends in good measure on CIRM’s priority review and whether its results resonate with California voters.

Jensen is a retired newsman and has covered CIRM for 19 years on his newsletter, the California Stem Cell Report. He authored the book, “California’s Great Stem Cell Experiment,” in 2020.