WELL GOOD AFTERNOON, EVERYONE
VERY EXCITED TO INVITE YOU. AND
WELCOME TO ROOM 4 47. THIS IS
THE FIRST HEARING OF THE
ASSEMBLY SELECT COMMITTEE ON
BIOTECHNOLOGY FOR THE 2023 24
LEGISLATIVE SESSION. VERY
EXCITED TO HAVE BEEN APPOINTED
THE CHAIR OF THE SELECT
COMMITTEE AND WE'VE GOT A FULL
MEMBERSHIP OF 11. MANY ARE
JUGGLING OTHER MEETINGS RIGHT
NOW, AND I WILL BE WILL BE IN
AND OUT OF THIS HEARING. AS YOU
ALL KNOW, CALIFORNIA IS HOME TO
NUMEROUS BIOTECHNOLOGY COMPANIES
, EDUCATIONAL INSTITUTIONS,
RESEARCH FACILITIES AND
DEVELOPMENT. THESE ARE GREAT
JOBS. THESE ARE LIFESAVING
BREAKTHROUGHS, AND WE'RE VERY
PROUD OF THE WORK THAT WE'VE
BEEN ABLE TO INCENTIVIZE AND BE
ABLE TO SUPPORT HERE. MANY OF
OUR BIOTECHNOLOGY ORGANIZATIONS
PROVIDE THE TECHNOLOGIES THAT
ARE GOING TO HELP SOCIETY. AND
INDIVIDUALS HEALTH AND WELL
BEING, FOR EXAMPLE, OUR
COMPANIES HAVE BEEN FOR ON THE
FRONTIER OF ENDING THE
CORONAVIRUS PANDEMIC AND FINDING
A CURE FOR SOME OF THE MOST
DEVASTATING DISEASES. IT'S
IMPERATIVE THAT OUR LEGISLATURE
UNDERSTANDS AND SUPPORTS SOME OF
THE CRUCIAL WORK OF THIS
INDUSTRY. AND SO THE GOAL OF
TODAY'S HEARING IS REALLY JUST
TO HEAR FROM IN INDUSTRY
OFFICIALS AND SOME OF THE
CURRENT STATE AND THE FUTURE OF
BIOTECHNOLOGIES INDUSTRY. THIS
IS A BROAD SETTING CONVERSATION
. THIS IS GOING TO BE A SELECT
COMMITTEE THAT UNDER MY
CHAIRMANSHIP INTENDS TO BE VERY
ACTIVE. BOTH INSIDE THE CAPITOL
AND OUT IN MANY OF THE DIFFERENT
CLUSTER AREAS ACROSS THE STATE.
OVER THE NEXT YEAR AND A HALF.
WE HAVE A LOT TO EXPLORE, BUT
IT'S IMPORTANT THAT WE DO SO
BECAUSE IT'S GOING TO INFORM
MUCH OF THE POLICY AND BUDGET ON
THAT THE LEGISLATURE DOES
THROUGH ITS STANDING COMMITTEES,
AND WE WANT TO MAKE SURE THAT
THIS SELECT COMMITTEE IS
ACTIVELY SYNTHESIZING A LOT OF
THAT INFORMATION AND BEING ABLE
TO FEED THAT UP TO MAKE INFORMED
DECISIONS BECAUSE, OF COURSE,
THIS IS A COMPETITIVE MARKET. WE
REALLY COMPETE GLOBALLY. UM AND
WITH OTHER AREAS OF THE COUNTRY
AS WELL. AND WE WANT TO KEEP
CALIFORNIA. THE FOREFRONT OF THE
LOT OF THE WORK. WE DO, SO WE
ARE GOING TO BE COMMENCING. WE
DO WANT TO REALLY KEEP OURSELVES
TO THE TIME TODAY OF ABOUT 90
MINUTES FOR THIS FIRST HEARING,
BUT NOT LOSE ANY OF THE
IMPORTANT DISCUSSION THAT OUR
PANELISTS ARE GOING TO BRING IN
THAT OUR COMMITTEE MEMBERS ARE
GOING TO BE ABLE TO HAVE A
CHANCE TO COMMENT ON WITH THAT.
AS PART OF OUR WELCOME REMARKS.
I DID WANT TO TURN IT OVER TO
OUR COMMITTEE MEMBERS WHO ARE
HERE I'LL BEGIN WITH THE SUN
MEMBER BORDER FOR ANY OPENING
THOUGHTS. YES I WANT TO THANK
EVERYBODY FOR BEING HERE AND
THANK YOU TO THE CHAIR FOR
CONVENING THIS HEARING. UM IT'S
ALWAYS DIFFICULT TO FIND A TIME
TO DO A SELECT COMMITTEE WHEN
BOTH YOU CAN HAVE PANELISTS THAT
COME AND MEMBERS WHO CAN ATTEND
AS WELL AND OBVIOUSLY
REPRESENTING A LARGE PORTION OF
THE SAN DIEGO COAST.
BIOTECHNOLOGY IS NOT ONLY
IMPORTANT TO OUR ECONOMY, BUT
IT'S IMPORTANT TO THE HEALTH AND
WELL BEING, OF ALL CALIFORNIANS
AND ALL AMERICANS AND ALL PEOPLE
IN THE WORLD, AND I THINK ONE
THING WE'VE SEEN IN THE YOU KNOW
WITH THE PANDEMIC IS HOW WELL
THE BIOTECHNOLOGY AND LIFE
SCIENCES INDUSTRY CAN WORK
TOGETHER TO REALLY HELP SOLVE
THE CRISIS. AND AS WE COME OUT
OF THIS PANDEMIC, IT'S REALLY
IMPORTANT THAT WE DON'T FORGET
THAT LESSON. AND SO I'M REALLY
LOOKING FORWARD TO TODAY'S
PANELISTS. UNFORTUNATELY HEALTH
COMMITTEES SO I WILL HAVE TO
BOUNCE BETWEEN DIFFERENT PLACES
BUT REALLY APPRECIATE THE CHAIR
FOR PULLING US ALL TOGETHER HERE
TODAY. SOME OF THEM HAPPENED.
I'LL JUST SAY DITTO AND LET'S
GET ON WITH THE SHOW. AS YOU
KNOW, BIOTECHS BIG IN MY
DISTRICT. THANK YOU FOR
CONVENING US. AND, UM I'M READY
TO LISTEN. YOU HAVE VERY
IMPORTANT WORK THAT YOU DO. SO
COME ON FORWARD. THANK YOU. AND
WITH THAT WE WILL COME ON
FORWARD. I'D LIKE TO INVITE OUR
FIRST THREE PANELISTS. WE HAVE
GREAT FAIL. THE DIRECTOR OF THE
BIO MEDICAL MANUFACTURING
NETWORK. UM ABIGAIL LORD, THE
DIRECTOR OF POLICY AND RESEARCH
WITH PHARMA AND VERONICA
SANDOVAL, DR SANDOVAL, THE
PRINCIPLE FOR PATIENT INCLUSION
AND HEALTH EQUITY, WHICH
GENENTECH? THE PURPOSE OF THE
FIRST PANEL IS TO REALLY PROVIDE
AN OVERVIEW OF THE LIFE SCIENCES
INDUSTRY AND SOME OF THE
OPPORTUNITIES AND THREATS THAT
WE SEE TODAY AND ON THE HORIZON
AND AGAIN. THIS CONVERSATION
HERE TODAY IS MEANT TO BE VERY
BROAD SETTING AND WILL INFORM A
LOT OF OUR SUBSEQUENT MEETINGS
THAT WE HAVE IN THE SELECT
COMMITTEE ON BOTH IN AND OUT OF
THE CAPITAL ON WORKFORCE
DEVELOPMENT ON THE ISSUES THAT
WE THINK ABOUT WHEN IT COMES TO
OUR MANUFACTURING TAX CREDIT.
WE'RE GOING TO COVER A LOT OF
GROUND. BUT APPRECIATE YOU BEING
HERE AND MR FILE, I'M GOING TO
BEGIN WITH YOU. RIGHT THANK YOU.
THANK YOU FOR INVITING US. TODAY
I JUST WANT TO SHARE THREE
POINTS ABOUT THE INDUSTRY THAT
WILL GIVE AN OVERVIEW FOR THE
STATE OF CALIFORNIA. AND MY
ORGANIZATION, THE BIOMEDICAL
MANUFACTURING NETWORK IS A
LITTLE DIFFERENT THAN THE OTHER
ORGANIZATIONS IN THE IN THE
STATE. THEY HAVE SOME GREAT
REPORTS THAT SHOW BILLIONS OF
DOLLARS AND MILLIONS OF JOBS. MY
ORGANIZATION. TRACKS THE
INDIVIDUAL COMPANIES. AND SO FOR
THE PAST 10 YEARS WE'VE
IDENTIFIED WHERE ALL THE
COMPANIES ARE LOCATED. THEIR CEO
S THEIR HEAD COUNTS WHERE THEY
ARE IN CLINICAL TRIALS. SO THE
NEXT SLIDE, PLEASE. AND SO WHAT
YOU SEE HERE IS OVER 5000 PINS
ON A MAP. AND I'M AN ENGINEER BY
DAY, BUT A GEOGRAPHER BY NIGHT,
AND SO I FOUND IT FASCINATING TO
TRACK THESE ALL OF THESE. AND SO
NEXT TIME, PLEASE. AND SO WHAT?
I'LL SHOW YOU IS I'M GOING TO
SHOW YOU THE THREE MAIN REGIONS
WHERE THESE THIS INDUSTRY IS
CONCENTRATED, AND LIKE I SAID
OVER 5000 PINS AND OUR GRANT
MONEY HAS COME FROM THE
DEPARTMENT OF THE U. S
DEPARTMENT OF COMMERCE. AND THEY
SAID, GO OUT AND HELP COMPANIES
AND SO WE'VE HELPED OVER 1000
COMPANIES IN THE PAST 10 YEARS.
AND SO I GOT REALLY GOOD ADVICE
IN THE BEGINNING, THEY SAID,
FIND THE COMPANIES KNOW WHERE
THEY ARE. EVERYONE HAS MACRO AND
AGGREGATE DATA, BUT NO ONE HAS
INDIVIDUAL COMPANY DATA. AND SO
I INVITE YOU AND THIS IS PUBLIC
INFORMATION. I'LL SHARE THIS
WITH YOUR COMMITTEE AND GOING
FORWARD. IF YOU WANT TO KNOW
WHERE THE COMPANIES ARE AND WHAT
THEY'RE DOING IN EACH OF THE
COMPANIES, SO THAT'S THAT'S
POINT NUMBER ONE POINT NUMBER
TWO. THIS IS LOS ANGELES. UH AND
I WANTED TO MAKE A SECOND POINT
. AND THAT IS WHEN MANY PEOPLE
THINK ABOUT BIOTECH OR
BIOMEDICAL, THEY OFTEN THINK
ABOUT JUST ONE INDIVIDUAL SECTOR
. AND SO THE SECOND POINT I WANT
TO MAKE IS THAT I TRACK EIGHT
DIFFERENT SECTORS AND THEY'RE
ALL QUITE DIFFERENT AS FAR AS
WORKFORCE AS FAR AS THE WAY THEY
INNOVATE THE FOREST THE MONEY
THEY RAISE, AND SO WE LOOK AT
BIOTECH, WHICH IS LIFE
MATERIALS. FORMED INTO EGG TECH
OR MEDICINE OR MATERIALS. WE
LOOK AT PHARMA. WE LOOK AT
MEDICAL DEVICES AND EQUIPMENT.
WE LOOK AT SOME REAL EMERGING
ONES LIKE GENOMICS AND DIGITAL
HEALTHCARE, AND WE LOOK AT
CONTRACT RESEARCH ORGANIZATIONS
AND CONTRACT MANUFACTURERS AND
SO EIGHT DIFFERENT SECTORS AND I
MAKE THESE PRESENTATIONS TO
DIFFERENT TYPES OF GROUPS AND
WHENEVER I MAKE THEM TOO SCHOOL
GROUPS EITHER UNDERGRAD OR GRAD
STUDENTS OR HIGH SCHOOL STUDENTS
. I SAY NO, THE SECTOR BECAUSE
THEY'RE QUITE DIFFERENT, SO
MEDICAL ADVICE AND EQUIPMENT.
YOU'RE ASSEMBLING THINGS. YOU'RE
PUTTING THINGS TOO SMALL THINGS
TOGETHER IN A CLEAN ROOM.
BIOTECH IS VERY LAB BASED LIKE
WE SEE DIGITAL HEALTHCARE AND
GENOMICS MIGHT AS WELL BE ATTACK
EXCEPT THAT IT'S FOCUSED ON LIFE
SCIENCE AND SO QUITE DIFFERENT
SECTORS, SO THAT'S POINT NUMBER
TWO IN THE STATES MADE UP IN
DIFFERENT SECTORS. NEXT SLIDE,
PLEASE. AND THEN THE NEXT ONE AS
WELL. OKAY, SO IN THESE THREE
REGIONS ABOUT 85% OF THE
COMPANIES ARE LOCATED. ALRIGHT
AND I TRACKED SOMETHING A LITTLE
DIFFERENT THAN OTHER COMPANIES,
TOO. OTHER OTHER ORGANIZATIONS
THEY TRACK. CVS S AND SUPPLIERS
OF LAB SUPPLIES AND THINGS LIKE
THAT. THESE ARE SPECIFICALLY THE
COMPANIES MAKING PRODUCTS AND
DEVELOPING AND DEVELOPING THE
RESEARCH. SO THAT'S WHY THE
NUMBERS MAY SEEM LOWER THAN SOME
OF THE NUMBERS YOU MAY HAVE
SEEN. BUT THESE ARE THE ACTUAL
COMPANIES DOING THE SCIENCE
ALRIGHT AND BIOTECH MAKES UP
ABOUT 40. OKAY MEDICAL DEVICES
AND EQUIPMENT MAKE UP ANOTHER
40% AND THEN THAT REMAINING 20%
IS DIGITAL HEALTHCARE AND
GENOMICS AND CONTRACT RESEARCH
AND RESEARCH ORGANIZATIONS. AND
SO IT'S REALLY VERY ACROSS THIS
AND SO LET ME DIG INTO THE THIRD
POINT, AND THIS IS THE REALLY
INTERESTING POINT. NEXT SLIDE.
SO WHAT WE DID WAS WE CALCULATED
WERE CALLED LOCATION, QUOTIENTS
. AND WHAT THIS LOOKS AT IS, IT
LOOKS AT CERTAIN GEOGRAPHY IS
WITHIN THE STATE. THAT HAVE A
CONCENTRATION OF BIOMEDICAL
COMPANIES. SO WE'RE LOOKING FOR
WHETHER THIS INDUSTRY IS SPREAD
EVENLY ACROSS THE STATE, OR
WHETHER THERE'S SOME SPECIFIC
HOTSPOTS. AND SO HEATMAP IS
PERFECT FOR THIS. AND SO WE
CALCULATE THESE LOCATION
QUOTIENTS AND AS A RESULT, THEN
WE CAME UP WITH NINE REGIONS
WITHIN THE STATE. RIGHT. YOU CAN
GO TO THE NEXT 12 NEXT. NEXT
ONE. RIGHT HERE. OKAY SO I'LL GO
THROUGH QUICKLY THROUGH THESE
NINE REGIONS. I'VE DUBBED THE
TERM MICROCLIMATES. WE ALL USE
MICROCLIMATES HERE FOR WEATHER.
BUT THESE ARE MICRO CLEMENTS OF
INNOVATION, AND EACH ONE IS
QUITE DIFFERENT. SO THIS IS
BERKELEY. THERE'S ABOUT 165
COMPANIES THERE. THEY'RE ABOUT A
QUARTER OF THE SIZE OF AVERAGE,
AND OVER HALF OF THEM ARE
GETTING SOME TYPE OF GOVERNMENT
NON DILUTIVE FUNDING, AND THEY
ALSO TURNOVER AT ABOUT TWICE THE
RATE OF COMPANIES IN THE REST OF
THE STATE. SO THIS IS A VERY
LOTS OF NEW IDEAS, LOTS OF TRIAL
AND ERROR. LOTS OF LOTS OF
FAILURE, BUT ALSO SOME LEARNING
FROM THAT FAILURE AS WELL. SMALL
COMPANIES REALLY LOCATED AROUND
èC, BERKELEY AND THE LABS THERE
, SO THAT'S A REAL KIND OF
MICROCLIMATE OF RESEARCH AND
DEVELOPMENT. NEXT SLIDE, PLEASE.
THEN MOVE ON TO SILICON VALLEY.
SILICON VALLEY IS A DIFFERENT
PERSONALITY SO EACH ONE OF THESE
MICROCLIMATES HAS A PERSONALITY
AGAIN BACK TO WHEN I PRESENT THE
STUDENTS. I SAY NO, YOUR
PERSONALITY. DO YOU WANT TO BE
PART OF THIS, YOU KNOW,
INNOVATIVE, EARLY STAGE LOTS OF
TURNOVER TYPE ENVIRONMENT OR
SILICON VALLEY IS A PLACE WHERE
BELIEVE IT OR NOT, THERE ARE
OVER 300 COMPANIES IN SILICON
VALLEY. HARVARD BUSINESS REVIEW
BACK IN, 2012 SAID. YOU KNOW
WHAT THE BIOTECH INDUSTRY NEEDS
ITS OWN SILICON VALLEY, WHILE
SURPRISED THEY HAVE THEIR OWN
SILICON VALLEY AND ITS SILICON
VALLEY AND THE REASON THAT THEY
HAVE IT IS BECAUSE THERE ARE ALL
OF THESE OTHER CUTTING EDGE
TECHNOLOGIES THAT ARE LOCATED
NEARBY. AND SO WE'RE GONNA
INNOVATIVE COMPANY YOU NEED TO
BE CLOSE TO SENSORS AND CLOSE TO
SOFTWARE AND CLOSE TO ELECTRONIC
BECAUSE YOU'RE INTEGRATING THESE
OTHER ASPECTS AS LONG WITH
CUTTING AS LONG AS WELL AS WITH
CUTTING EDGE FINANCE AS WELL
WITH THE VENTURE CAPITAL
COMMUNITY NEARBY. SO THIS
MICROCLIMATE IS A FASCINATING
KIND OF VALUE CHAIN INTEGRATION
. NEXT IS IRVINE, IRVINE HAS
AMAZING SUPPLY NETWORKS. THEY'VE
GOT MACHINISTS. THEY'VE GOT
CONTRACT MANUFACTURERS. THEY'VE
GOT ENGINEERING FIRMS AND
THEY'RE VERY STRONG AND MEDICAL
DEVICES AND EQUIPMENT. KNOWING
THESE GEOGRAPHY CZAR REALLY
IMPORTANT BECAUSE IT'S A MEDICAL
DEVICE AND EQUIPMENT THAT HIRE
PEOPLE FOR MIDDLE SKILL JOBS.
OKAY THE BIOTECH COMPANIES IN
SOUTH SAN FRANCISCO LOVE SOUTH
SAN FRANCISCO, BUT IT'S VERY
DIFFERENT IN A DIFFERENT
WORKFORCE PROFILE. SO PLACES
LIKE IRVINE PLACES LIKE FREMONT
PLACES LIKE CARLSBAD. THEY
EMPLOY FOLKS IN THE MIDDLE SKILL
JOBS THAT YOU ONLY NEED A HIGH
SCHOOL DEGREE OR TWO YEAR
DEGREE. THAT'S AN IMPORTANT KIND
OF GEOGRAPHY AND ECONOMIC
DEVELOPMENT TO KNOW. NEXT ONE,
PLEASE. LOS ANGELES. THIS TALENT
POOL RIGHT HERE IS AMAZING. UCL
A CALTECH CITY OF HOPE, ALL THAT
KIND OF THIS THIS THIS CRESCENT
THAT GOES FROM SANTA MONICA ALL
THE WAY UP THROUGH PASADENA IS A
FASCINATING DISPLAY OF MAINLY
BIOTECH AND PHARMA COMPANIES.
EARLY STAGE AGAIN. LOTS OF
SPINOUTS. BUT REALLY FEEDING ON
THE TALENT POOL THERE. OKAY
AGAIN, ANOTHER MICROCLIMATE WITH
A DIFFERENT PERSONALITY OF
SORTS. NEXT ONE, PLEASE. LIKE I
SAID, FREMONT SCALE UP WHEN
COMPANIES NEED TO SCALE UP AND
YOU CAN JUST FLIP TO THE NEXT
ONE, TOO, AS WELL. THANK YOU.
CARLSBAD AND FREMONT ARE
FASCINATING BECAUSE THIS IS
WHERE COMPANIES GO TO GROW UP.
ESPECIALLY MEDICAL ADVICE
EQUIPMENT, BUT ALSO BY A BIO
PHARMA COMPANIES SELLING GENE
THERAPIES YOU'RE GOING TO HEAR
ABOUT SELLING GENE THERAPY.
LATER, COMPANIES MOVED FROM
SOUTH SAN FRANCISCO TO PLACES
LIKE NEWARK, FREMONT, HAYWARD
WHEN IT'S TIME TO START BUILDING
AND SCALING UP AND HAVING MORE
SPACE AND ALSO BEING CLOSE BY TO
SUPPLIERS AND CONTRACT
MANUFACTURERS AND CONTRACT
RESEARCH ORGANIZATIONS. SO IT'S
A BIT OF A FOUNDRY ALMOST SO AS
COMPANIES EVOLVE AND GROW UP,
THEY FIND NEW GEOGRAPHY IS TO
MOVE TO AND ACTUALLY EXPAND, SO
IT'S AN IMPORTANT THAT'S ONE OF
THE THINGS THAT REALLY
DISTINGUISHES CALIFORNIA FROM
THE REST OF THE WORLD ACTUALLY,
IS BECAUSE WE HAVE THESE
DIFFERENT MICROCLIMATES THAT FIT
DIFFERENT PARTS OF THE EVOLUTION
OF A COMPANY. OKAY AND SO THEY
COMPANIES CAN STAY HERE THROUGH
THEIR ENTIRE LIFE CYCLE IN THE
IN THE LIFE SCIENCE INDUSTRY.
NEXT PLEASE. SOUTH SAN FRANCISCO
? YES THIS IS THE BIRTHPLACE OF
THE BIOTECH INDUSTRY WEIGH OVER
300 COMPANIES THERE, BUT I
COINED A TERM CALLED PROXIMITY
PIPELINE BECAUSE ABOUT 20 YEARS
AGO, THE BIG COMPANY SAID, YOU
KNOW, IT'S REALLY EXPENSIVE TO
INTERNALIZE ALL OUR R AND D.
LET'S GET A LOT OF SMALL
COMPANIES NEARBY. IN INCUBATORS
AND LET'S HAVE SOME INVESTMENT
DEALS WITH SOME OF THEM AND
LET'S WATCH THEM CAREFULLY. AND
WHEN THINGS GO WELL, WE ACQUIRE
THEM OR TAKE A BIGGER STAKE IN
HIM. AND SO SOUTH SAN FRANCISCO
IS A GREAT EXAMPLE OF THIS
PIPELINE, PROXIMITY PIPELINE
CONCEPT, AND IT'S ALMOST
EXCLUSIVELY BY BIOTECH AND
PHARMA IN SOUTH SAN FRANCISCO.
OKAY, NEXT, PLEASE. AND SAN
FRANCISCO WHO KNEW I RECENTLY
PRESENTED TO THE MAYOR, AND SHE
HAD NO IDEA THAT THERE ARE OVER
300 BIOMEDICAL COMPANIES IN SAN
FRANCISCO, SAN FRANCISCO GETS
BEAT UP A LOT. HOW ABOUT A NEW
STORY? I TOLD HER. HOW ABOUT A
STORY ABOUT EMERGING DIGITAL
HEALTHCARE AND GENOMICS
COMPANIES IN SAN FRANCISCO CLOSE
TO 300 OF THEM THERE? YES THEY
SEEM LIKE TECH COMPANIES. YES,
THEY FIT INTO BIG, TALL
BUILDINGS, AND THEY HAVE THREE
OR FOUR EMPLOYEES ONLY SOMETIMES
, BUT THIS IS REALLY A BOOM IN
AN UNKIND OF UNPUBLICIZED STORY
THAT SAN FRANCISCO IS REALLY
BIOMEDICAL HUB AS WELL. OKAY
NEXT, PLEASE. AND OF COURSE,
DIEGO. CAN'T MISS SAN DIEGO. SAN
DIEGO IS A BIO PHARMA
POWERHOUSE. THERE ARE ALMOST
1000 COMPANIES JUST IN SAN DIEGO
IN THIS INDUSTRY. YES IT'S A BIG
GEOGRAPHY, BUT IT'S A FANTASTIC
LOCATION THAT RIVALS CAMBRIDGE,
BOSTON, SPECIFICALLY IN IN
BIOPHARMA, JUST BY THEMSELVES.
THE STATE DEMOLISHES
MASSACHUSETTS. OKAY NO QUESTION
ABOUT THAT AND THE REST OF THE
WORLD. BUT SAN DIEGO ALONE CAN
TAKE ON CAMBRIDGE, BOSTON,
PARTICULARLY IN BIO PHARMA.
PRETTY FOCUSED ON BIOPHARMA.
SOME GENOMICS, SOME DIGITAL
HEALTHCARE, NOT THE HARDWARE AND
DEVICES AND EQUIPMENT THAT YOU
FIND IN IRVINE AND END UP IN THE
BAY AREA, BUT AGAIN, ANOTHER
MICROCLIMATE. SO LAST SLIDE,
PLEASE. SO NUMBER ONE LOTS OF
PINS. I'M HAPPY TO SHARE THE
PINS WITH YOU AND THE DATABASE
BEHIND ALL THE PINS. NUMBER ONE
NUMBER TWO LOTS OF DIVERSITY
WITH IT WHEN PEOPLE SAY
BIOMEDICAL OR LIFE SCIENCE LOTS
AND LOTS OF DIVERSITY OF THE
TYPES OF COMPANIES IN THE
SECTORS WITHIN THAT, AND EACH
ONE HAS A PERSONALITY. AND THEN
THE THIRD POINT OBVIOUSLY, IS
THAT THE GEOGRAPHY IS THE
MICROCLIMATES. EACH OF THE
GEOGRAPHY IS AROUND THE STATE,
THESE NINE THAT I HAVE SINGLED
OUT HAVE DIFFERENT PERSONALITIES
DIFFERENT DIFFERENT NEEDS BUT
ALSO DIFFERENT BENEFITS FOR THE
STATE AS WELL. SO THANK YOU VERY
MUCH. GREAT THANK YOU. DR TOWER.
REALLY FASCINATING OVERVIEW.
DEFINITELY PROBABLY A LOT OF
REQUESTS WILL BE COMING IN FOR A
LOT MORE INFORMATION THAT IS
INTEGRATED IN THE SLIDES WERE
GOING TO GO AHEAD TO OUR OTHER
TWO PANELISTS AS WELL AND MAYBE
HAVE QUESTIONS FOR THE ENTIRE
PANEL. NEXT I'D LIKE TO INVITE
ABIGAIL LARA, THE DIRECTOR OF
POLICY OF RESEARCH. POLICY AND
RESEARCH WITH FORMAT. THANK YOU.
GOOD AFTERNOON. MY NAME IS
ABIGAIL LAUR. AND I WANT TO
THANK THE SELECTION COMMITTEE
FOR HAVING ME HERE TODAY TO TALK
ABOUT THE IMPACTS OF POLICY,
PARTICULARLY THIS NEW FEDERAL
POLICY, THE INFLATION REDUCTION
ACT IRA AND DEMONSTRATE THE
NEGATIVE CONSEQUENCES THAT THIS
POLICY CAN HAVE ON INNOVATION
AND PATIENTS. IT PROVIDES A
USEFUL LENS THROUGH WHICH TO
EXAMINE HOW PRICE CONTROL
POLICIES. UM CAN IMPACT
INNOVATION, THE ECONOMY AND I
APPRECIATE BEING ABLE TO EXPLORE
THIS WITH YOU TODAY. PHARMA
REPRESENTS THE COUNTRY'S LEADING
BIO PHARMACEUTICAL RESEARCH
COMPANIES WHO ARE DEVOTED TO
DISCOVERING AND DEVELOPING NEW
MEDICINES TO HELP PATIENTS LIVE
LONGER, HEALTHIER AND MORE
PRODUCTIVE LIVES. THE BIO
PHARMACEUTICAL SECTOR IS ONE OF
THE MOST RESEARCH INTENSIVE
INDUSTRIES IN THE US SINCE 2000
. FORMER MEMBER COMPANIES HAVE
INVESTED MORE THAN HALF A
TRILLION DOLLAR IN THE SEARCH
FOR NEW TREATMENTS AND CURES.
AND INTO 2021. THE INDUSTRY'S R
AND D INVESTMENTS TOTALED $102.3
BILLION, THE HIGHEST INVESTMENT
ON RECORD. AND CUMULATIVE
MEDICAL ADVANCES ARE LEADING TO
BETTER HEALTH OUTCOMES FOR
PATIENTS DEMONSTRATING THAT THIS
POLICY ENVIRONMENT THAT WE HAVE
AND POLICY INITIATIVES THAT HAVE
LONG SUPPORTED THE R AND D
ECOSYSTEM HAVE BEEN WORKING TO
INCENTIVIZE INNOVATION AND 2020
TO THE U. S. FOOD AND DRUG
ADMINISTRATION APPROVED 45 NEW
MEDICINES WERE OVER. 50% OF
THOSE MEDICINES WERE FIRST IN
CLASS MEANING THAT THEY EMPLOYED
A NEW MECHANISM OF ACTION
DIFFERENT THAN EXISTING
THERAPIES. FURTHER NEW THERAPIES
ARE TRANSFORMING OUR APPROACH TO
TREAT CANCER, FOR EXAMPLE, AND
DRIVING REDUCTIVE DRAMATIC
REDUCTIONS IN MORTALITY AND
INCREASING SURVIVAL. UM BETWEEN
4016 ALONE, NEW CANCER DRUG
APPROVALS WERE ASSOCIATED WITH
1.3 MILLION PREVENTED CANCER
DEATHS. AND MANY MORE ADVANCES
LIKE THIS ARE IN DEVELOPMENT.
ALL THE INNOVATION YOU'LL HEAR
ABOUT TODAY. THE THINGS TALKED
ABOUT IN THE SECOND PANEL ARE
SEEN LATER ON THE FACILITY TOUR
IS AT RISK UNDER POLICIES LIKE
PRICE CONTROLS. THERE ARE
CURRENTLY 8000 MEDICINES IN
DEVELOPMENT GLOBALLY TO HELP ME
PATIENT THE NEEDS OF PATIENTS
THAT DON'T CURRENTLY HAVE A
TREATMENT OPTION. UNFORTUNATELY
ALL OF THIS PROJECT PROGRESS IS
AT RISK BECAUSE OF POLICIES LIKE
NATIONAL AND STATE PRICE
CONTROLS. WE WENT OLD SCHOOL
TODAY. SO IN ONE OF YOUR
PACKETS, YOU WILL HAVE A SLIDE
THAT DEMONSTRATES OUR DRUG
DEVELOPMENT SYSTEM. IT'S A
LENGTHY, COSTLY ON ITS UNCERTAIN
AND IT REQUIRES A POLICY
ENVIRONMENT. UM THAT
INCENTIVIZES INNOVATION TO
SUCCEED AS YOU'LL SEE FROM THIS
EXHIBIT, THERE'S MULTIPLE STAGES
OF DRUG DEVELOPMENT. IT CAN TAKE
10 TO 15 YEARS TO DEVELOP AND AN
AVERAGE OF $2.6 BILLION AND ONLY
12% OF THESE INVESTIGATIONAL
MEDICINES THAT REACH CLINICAL
TRIALS RECEIVE APPROVAL FROM THE
FDA. NOW AFTER FDA APPROVAL ON
THE FAR LEFT HAND SIDE, YOU'LL
SEE THIS PHASE OF THE
DEVELOPMENT FACE FOR POST
APPROVAL RESEARCH. THIS PHASE OF
DRUG DEVELOPMENT IS VITAL TO THE
DEVELOPMENT OF NEW USES FOR
EXISTING MEDICINES, ESPECIALLY
IN CANCER. NEW RESEARCH SHOWS
THAT OF DRUGS THAT RECEIVED FDA
APPROVAL BETWEEN THE BEGINNING
OF 2006 IN THE END OF 2013. OVER
60% OF THOSE SMALL MOLECULE
CANCELED CANCER MEDICINES
RECEIVED AT LEAST ONE POST
APPROVAL INDICATION AND 20%
RECEIVED THREE OR MORE POST
APPROVAL INDICATIONS
DEMONSTRATING THE IMPORTANCE OF
CONTINUED RESEARCH ON ALREADY
APPROVED MEDICINES. PRICE
CONTROL POLICY SPECIFICALLY
DISRUPT THIS SYSTEM, A POST
APPROVAL RESEARCH THAT THESE
PATIENTS DEPEND ON IN THE UNITED
STATES. THERE HAVE HISTORICALLY
BEEN LEGAL AND REGULATORY
FRAMEWORKS THAT RECOGNIZE THE
NEED TO MAINTAIN INCENTIVES FOR
BRINGING NEW TREATMENTS TO
PATIENTS WHILE ALSO ENCOURAGING
THE INTRODUCTION OF BIOSIMILAR
IN GENERIC VERSIONS OF BRANDED
MEDICINES. THIS IS ONE OF THE
REASONS ARE COMPETITIVE, MARKET
BASED SYSTEM HAS SUCCEEDED IN
HOLDING DOWN PRESCRIPTION
MEDICINE PRICES AND SPENDING ALL
ENABLING THE US TO MAINTAIN
GLOBAL LEADERSHIP IN BIO
PHARMACEUTICAL INNOVATION.
GENERICS AND BIOSIMILARS HAVE
SUCCESSFULLY OFFSET SPENDING ON
NEW BRAND MEDICINES IN THE
UNITED STATES TO DATE, ALLOWING
FOR PRESCRIPTION MEDICINES TO
ACCOUNT FOR JUST 14% OF TOTAL
HEALTH CARE SPENDING OVER THE
LAST DECADE, EVEN WHILE MANY
BREAKTHROUGH TREATMENTS HAVE
CONTINUED TO ENTER THE MARKET TO
HELP PATIENTS BUT THE IMPOSITION
OF POLICIES THAT HARM INNOVATION
LIKE GOVERNMENT SET PRICES
SEVERELY. UM DISRUPTS THIS
BALANCED FRAMEWORK, UNDERMINING
THE ABILITY TO INCENTIVIZE BOTH
COMPETITION AND CONTROLLED COSTS
AND INNOVATIONS. NOW WHEN
COUNTRIES HAVE POLICIES THAT,
LIKE THE GOVERNMENT ACT AS A
GATEKEEPER BETWEEN PATIENTS AND
NEW TREATMENTS, IT'S THE
PATIENTS WHO SUFFER. RECENT
RESEARCH SHOWS THAT A RECORD
NUMBER OF NEW MEDICINES HAVE
LAUNCHED GLOBALLY BUT DUE TO
GAPS IN LOCAL COVERAGE PLANS
PATIENTS IN MOST COUNTRIES,
INCLUDING MANY DEVELOPED
COUNTRIES CAN ACCESS ONLY A
SMALL SHARE OF THESE NEW
MEDICINES. FOR EXAMPLE, ON
AVERAGE PATIENTS IN OECD
COUNTRIES CAN HAVE ACCESS TO
ONLY 29% OF NEW MEDICINES
THROUGH A GOVERNMENT HEALTH PLAN
, SOME OF WHICH INSTITUTE
RESTRICTIONS ON THE PRICE. BUT
IN THE US, THEY LAUNCHED FIRST
AND THEY LOG LAUNCHED FASTEST.
PATIENTS CAN HAVE ACCESS TO 85%
OF NEW MEDICINES AT LAUNCH. IN
ADDITION, PATIENTS AND OTHER
COUNTRIES OFTEN WAIT ON AVERAGE
41 MONTHS LONGER THAN PATIENTS
IN THE U. S FOR THEIR GOVERNMENT
HEALTH INSURANCE TO COVER NEW
MEDICINES. PRICE CONTROLS ARE
OFTEN DIRECTED AT A LIMITED
NUMBER OF HIGH PRICED DRUGS OR
DRUGS THAT ARE HIGHLY UTILIZED.
GOVERNMENT PRICE CONTROLS
ESSENTIALLY ALLOW THE GOVERNMENT
TO CHOOSE WHICH DRUGS WILL BE
INCENTIVIZED IN WHICH DRUGS WILL
NOT EXEMPLIFIED IN THE FEDERAL
LAW. THE IRA, THE SECRETARY
SELECT CERTAIN DRUGS THAT ARE
DEEMED TO NOT HAVE ANY
COMPETITION FOR MY LIST OF THE
TOP 100. MEDICARE SPEND DRUGS TO
SET THE PRICE OF THE GOVERNMENT
SET PRICE BECOMES THE NEW BASIS
FOR MEDICARE REIMBURSEMENT AND
PATIENT COST SHARING IN THE
MEDICARE PARTS B AND D PROGRAMS
COMPANIES THAT DO NOT COMPLY
WITH THIS PRICE WILL FACE
PENALTIES, AND THIS YEAR THE
INITIAL 10 DRUGS FOR PRICE
SETTING WILL BE SELECTED AND
THEN THE NUMBER OF DRUGS
SELECTED WILL INCREASE UP TO 80
DRUGS BY 2030. IN ADDITION TO
THE REQUIREMENT THAT DRUGS FOR
SELECTION OR THOSE WITHOUT A
MARKETED COMPETITOR, THIS
FEDERAL LAW CREATES ARBITRARY
TIMELINES. FOR WHEN THIS
GOVERNMENT SET PRICE GOES INTO
EFFECT UNDER IRA SMALL MOLECULE
DRUGS, WHICH ARE YOUR PILLS AND
CAPSULES, THEY CAN BE SELECTED
FOR GOVERNMENT PRICE SETTING
JUST SEVEN YEARS AFTER FDA
APPROVAL WITH THEIR GOVERNMENTS
AT PRICE GOING IN TO AFFECT TWO
YEARS AFTER THAT BIOLOGIC
MEDICINES, WHICH ARE OFTEN YOUR
PHYSICIAN ADMINISTER
ADMINISTRATIONS CAN BE SELECTED
FOR THEIR GOVERNMENT SET PRICE
AT 11 YEARS AFTER APPROVAL, AND
THEIR PRICE WILL ALSO GO INTO
EFFECT. TWO YEARS AFTER THIS
SHORTER TIMELINE FOR PILLS AND
CAPSULES IS THEREFORE CREATING
THIS PENALTY AGAINST SMALL
MOLECULE, MEDICINES OR PILL
PENALTY THAT WILL DISCOURAGE THE
INVESTMENT AND DEVELOPMENT OF
THESE KINDS OF MEDICINES. BUT
THESE ARE THE EXACT TYPES OF
MEDICINES THAT ARE OFTEN EASIER
AND MORE CONVENIENT TO TAKE
AIDEN ADHERENCE AND ARE OFTEN
PREFERRED BY PATIENTS. AND THE
OTHER THING WITH PRICE CONTROL
POLICIES IS THAT THEY DON'T
ACCOUNT FOR THE FACTORS THAT
REFLECT THE VALUE OF THE
MEDICINE OR THE VALUE THAT IT
BRINGS TO PATIENTS AND CARE
GIVERS. PRICE CONTROLS, IGNORE
THE FACTORS THAT ACCOUNT FOR
MEDICINES. THAT MAY ONLY BE FOR
US A FEW A FEW PATIENTS SUCH AS
THOSE WITH RARE DISEASES, OR
IT'S AN ORPHAN DRUG OR THE
DURATION OF THE TREATMENT.
TIMELINE OF PRICE CONTROL WON'T
VALUE IF IT'S SECURE VERSUS AN
ONGOING TREATMENT. FOR EXAMPLE,
IN YOUR SECOND EXHIBIT WITH THE
SCALES. YOU CAN SEE THE TYPES OF
INFORMATION THAT THE IRA IS
GOING TO REQUIRE FOR THE
SECRETARY TO CONSIDER WHEN
ESTABLISHING THIS GOVERNMENT SET
PRICE. AND WHAT WE KNOW ABOUT
THE INTENDED APPROACH BY THE
GOVERNMENT SO FAR, IS THAT IT
WILL TIP THE SCALES AGAINST
PATIENTS AND PUNISH INNOVATION,
AND IT UNDERMINES ANY PAST
EFFORTS THAT INCENTIVIZE
RESEARCH AND DEVELOPMENT. AND
EVEN MORE PROBLEMATIC IS THE
ARBITRARY NATURE OF DETERMINING
WHAT IS A FAIR PRICE AND WHO
WILL MAKE THAT DECISION. IN MANY
INSTANCES, THE INDIVIDUALS
MAKING THESE DECISIONS AREN'T
HEALTHCARE PROVIDERS OR EXPERTS
WHO UNDERSTAND THE VALUE THAT
THESE PRESCRIPTION DRUGS CAN
BRING TO PATIENTS AS WELL AS THE
OVERALL HEALTH CARE SYSTEM. TOO
OFTEN THEY'RE BUREAUCRATS WITH
NO SCIENTIFIC OR MEDICAL
UNDERSTANDING TO MAKE THE
DECISIONS IN THE BEST INTERESTS
OF PATIENTS. IN FACT, UNDER
PRICE SETTING POLICIES SUCH AS
THE IRA, THE GOVERNMENT HAS
SIGNALED THAT IT WILL SET THE
PRICE AT THE COST OF
MANUFACTURING AND DISTRIBUTING
THE MEDICINE WITH A VERY SMALL
MARGIN TO CONTINUE TO ACCUMULATE
A RETURN ON INVESTMENT. FARMERS
CONCERNED THAT PRICES THAT THIS
LOW WILL HAVE A PROFOUNDLY
NEGATIVE IMPACT ON CONTINUED
INVESTMENT IN NEW USES FOR
ALREADY APPROVED MEDICINES AND
FUTURE INNOVATION. IN ADDITION,
RECENT EXPERIENCES WITH DRUG
SHORTAGES ACROSS THE US HAVE
HIGHLIGHTED THE EXTREMELY
NEGATIVE IMPACTS OF PRICE
SETTING POLICIES LIKE THE I R. A
ON SUPPLY CHAIN RESILIENCY DRUGS
SUCH AS STERILE INJECTABLE DRUGS
ARE PARTICULARLY SUSCEPTIBLE TO
SHORTAGES WHEN THE MARGIN IS TOO
LOW, ACCORDING TO FORMER FDA
COMMISSIONER SCOTT GOTTLIEB
QUOTE. BUT WHEN IT COMES TO AN
INJECTABLE DRUG, YOU NEED TO
LEAVE A MARGIN IN SO PEOPLE CAN
REINVEST IN MANUFACTURING
FACILITIES. MAKE SURE THAT
THEY'RE HIGH QUALITY, HE ADDED.
THEY HAVEN'T DONE THAT, UNDER
CURRENT GOVERNMENT PROGRAMS AND
THINGS GO WRONG AND IT WILL
RESULT IN SHORTAGES. UNQUOTE. TO
FULLY UNDERSTAND HOW PRICE
CONTROLS IMPACT INNOVATION. IT'S
HELPFUL TO UNDERSTAND A BIT MORE
ABOUT THIS BALANCE WE HAVE
BETWEEN INNOVATION AND
COMPETITION FROM GENERICS AND
BIOSIMILARS SO YOU CAN SEE IN
YOUR PACKETS ON EXHIBIT THREE, A
STANDARD LIFE CYCLE OF A
MEDICINE THE TIME BETWEEN THE
LAUNCH OF A DRUG AND THE LAUNCH
OF A FIRST GENERIC AND
BIOSIMILAR COMPETITOR IS KNOWN
AS THE EFFECTIVE PAGEANT LIFE OF
A NEW BRANDED DRUG. THE MOST
RECENTLY CALCULATED EFFECTIVE
PATENT LIFE FOR A NEW SMALL
MOLECULE MEDICINE THAT
EXPERIENCED INITIAL GENERIC
ENTRY BETWEEN 2017 AND 2019 WAS
ABOUT 13 TO 14 YEARS. SO NOW
LET'S TURN OUR ATTENTION TO THE
NEXT EXHIBIT AND SEE WHAT
HAPPENS UNDER GOVERNMENTS, PRICE
SETTING. UNFORTUNATELY UNDER
LAWS LIKE THE IRA, THE PRICE IS
SET FOR SMALL MOLECULES AND
BIOLOGICS WITHOUT A GENERIC
COMPETITOR. NINE YEARS AND 13
YEARS AFTER FDA APPROVAL,
RESPECTIVELY, WHICH IS FAR
EARLIER THAN THE AVERAGE TIME OF
THEIR EFFECTIVE PATENT LIFE, WE
CAN SEE THAT THE PRICE CONTROLS
CUT SHORT THE TIME THAT
COMPANIES HAVE TO INVEST IN AND
CONTINUE RESEARCHING AND
DEVELOPING AFTER INITIAL
APPROVAL. BECAUSE OF THIS
REDUCED TIME TO EARN POTENTIAL
PROFITS. 95% OF PHARMA MEMBERS
SAY THAT THEY EXPECT TO DEVELOP
FEWER NEW MEDICINES ON ALREADY
APPROVED FDA MEDICINES. IN
ADDITION, WHEN ASKED IF THEY
SHIFT R AND D INVESTMENT FOCUS
AWAY FROM SMALL MOLECULES
BECAUSE OF THIS PILL PENALTY,
63% OF THOSE WHO RESPONDED SAID
YES. THIS PILL PENALTY THROWS,
UNCERTAINTY AND TWO PREVIOUSLY
STABLE, PREDICTABLE AND ROBUST
GENERICS MARKET AND WITH FEWER
INNOVATIVE MEDICINES BEING
DEVELOPED, WERE INADVERTENTLY
LEAVING PATIENTS WITH FEWER LOW
COST TREATMENT OPTIONS IN THE
FUTURE. ONE MORE MINUTE. YEAH,
ABSOLUTELY. THE PRICE SETTING
POLICIES ARE UNRAVELING A
UNIQUELY AMERICAN INNOVATION
ECOSYSTEM, AND IT RISKS FUTURE
INNOVATION FOR PATIENTS. UNDER
PRICE CONTROLS. COMPANIES ARE
FORCED TO MAKE TOUGH DECISIONS
ABOUT R AND D AND INVESTMENT AND
THE SHORTER TIME ON THE MARKET
TO EARN A RETURN IS FORCED BY
PRICE CONTROLS AND HAS A RIPPLE
EFFECT THAT MAY RESULT IN FEWER
PRODUCTS IN THE ROBUST PIPELINE,
RESULTING IN SLOWER ACCESS TO
POTENTIALLY FEWER TREATMENTS AND
CURES FOR PATIENTS. IN ADDITION
TO THE IMPACT ON INNOVATION, WE
KNOW THAT NEW DRUG PRICE SETTING
POLICY IS EXPECTED TO HAVE A
NEGATIVE $645 BILLION IMPACT ON
THE INDUSTRY OVER THE NEXT 10
YEARS. NOT ONLY WILL THE LAW
REDUCED RESOURCES ABOUT
AVAILABLE TO INVEST IN THE NEXT
GENERATION OF TREATMENTS AND
CURES, BUT ALSO LEADS TO
SIGNIFICANT JOB LOSS. ONE
ANALYSIS ESTIMATES THAT MORE
THAN 600,000 AMERICAN JOBS COULD
BE LOST AS A RESULT OF THIS LAW.
MOREOVER THE JOBS THAT ARE AT
RISK ARE PRECISELY THE KINDS OF
JOBS THAT POLICYMAKERS AIMED TO
GROW THE HIGH VALUE JOBS THAT
DELIVER DISPROPORTIONATE
BENEFITS TO OUR U. S ECONOMY.
UNFORTUNATELY STATE AND NATIONAL
PRICE SETTING POLICIES
THREATENED TO UNDERMINE
AMERICA'S COMPETITIVE POSITION
AS A LEADER IN BIOPHARMACEUTICAL
INNOVATION, RATHER THAN ERODING
THE MEDICAL AND ECONOMIC
CONTRIBUTIONS OF THE INDUSTRY
AND ITS GLOBAL LEADERSHIP. WE
NEED TO SUPPORT A POLICY AND
REGULATORY ENVIRONMENT THAT
RECOGNIZES THE VALUE OF SILENCE
SCIENCE. I HOPE THAT YOU CAN SEE
THROUGH THE LENS OF THIS VERY
SPECIFIC FEDERAL LAW, THE
SIGNIFICANT HARMS OF GOVERNMENT
PRICE SETTING POLICY. THANK YOU.
AND I'M HAPPY TO TAKE ANY OF
YOUR QUESTIONS AT THE END. THANK
YOU, MISS LAURA. AND FINALLY, WE
HAVE DR VERONICA SANDOVAL, THE
PRINCIPAL WITH PIECE FOR PIECE
AND INCLUSION AND HEALTH EQUITY,
WHICH GENENTECH? THANK YOU.
ASSEMBLING MAN WARD AND MEMBERS.
MY NAME IS VERONICA SANDOVAL. I
AM A NATIVE CALIFORNIAN, AND I
LIVE IN CARLSBAD AND, CALIFORNIA
THANK YOU FOR THE INVITATION TO
BE HERE WITH YOU TODAY. I
APPRECIATE YOU, INCLUDING
DIVERSITY, EQUITY AND INCLUSION
AND WORKFORCE DEVELOPMENT ON THE
AGENDA. I JOINED ANANDTECH IN
2018 AS A GLOBAL MEDICAL
COLLABORATION, LEAD SUPPORTING
THE EARLY CLINICAL DEVELOPMENT
PROGRAM FOR AUTISM. PRIOR TO MY
ROLE AS PRINCIPAL IN THE PATIENT
, INCLUSION AND HEALTH EQUITY
TEAM AT THE CHIEF DIVERSITY
OFFICE. I WAS A MEDICAL SCIENCE
LIZA IN THE CALIFORNIA HAWAII
ECOSYSTEM SUPPORTING THE
RESPIRATORY PORTFOLIO. THROUGH
MY ROLE IN GENETICS, CHIEF
DIVERSITY OFFICE. I SUPPORT THE
DEVELOPMENT AND EXECUTION OF OUR
ADVANCING INCLUSIVE RESEARCH AND
HEALTH EQUITY STRATEGY. I ALSO
NEED EXTERNAL AND INTERNAL
ENGAGEMENTS AND OPPORTUNITIES
FOR COLLABORATION WITH KEY
STAKEHOLDERS. PARTNERING WITH US
TO DISMANTLE HEALTH INEQUITIES
AND DIVERSIFY CLINICAL RESEARCH.
MUCH OF THE INFORMATION I WILL
BE DISCUSSING THIS AFTERNOON IS
IN THE GENETICS 2020 TO
DIVERSITY AND INCLUSION REPORT,
WHICH WAS PROVIDED TO THE
COMMITTEE IN ADVANCE. NEXT
SLIDE, PLEASE. LOGIN ANTIC IS TO
DELIVER SCIENTIFIC INNOVATIONS
THAT DRIVE BETTER OUTCOMES FOR
OUR PEOPLE, PATIENTS, BUSINESS
AND COMMUNITIES BY ADVANCING AND
CHAMPIONING DIVERSITY, EQUITY
AND INCLUSION. OUR DIVERSITY AND
INCLUSION STRATEGY IS TRULY
INTEGRATED INTO GENETICS.
CULTURE BUSINESS BEYOND JUST
HIRING AND RETAINING TALENT.
THIS IS A HOLISTIC APPROACH TO
DIVERSITY AND INCLUSION, AND IT
IS CENTERED AROUND THREE CORE
PILLARS OF OUR 2025 COMMITMENTS.
NEXT SLIDE, PLEASE. NEXT. IF YOU
COULD CLICK THREE TIMES, PLEASE.
OUR FIRST PILLAR IS, UM
FOSTERING BELONGING. WHERE WE
ARE CREATING A CULTURE BELONGING
FOR OUR EMPLOYEES AND COMMIT
THAT BY 2025 WILL DOUBLE BLACK
AND LATINO REPRESENTATION OF
DIRECTORS AND OFFICERS MIRROR
ASIAN REPRESENTATION OF
DIRECTORS AND OFFICERS TO THAT
HAVE INDIVIDUAL CONTRIBUTORS AND
MANAGERS AND COMMIT TO ADDRESS
GENDER REPRESENTATION
OPPORTUNITY ZONES. THE MILL
MIDDLE PILLAR IS ADVANCING,
INCLUSIVE RESEARCH AND HEALTH
EQUITY FOR ALL OF OUR PATIENTS,
AND THIS IS NOT WHAT I WILL BE
ADDRESSING. TODAY THE LAST
PILLAR IS TRANSFORMING SOCIETY
WHERE WE'RE INVESTING IN
PARTNERING WITH OUR COMMUNITIES
IN THIS PILLAR WE ARE ANNUALLY
COMMITTING $1 BILLION OF OUR
EXTERNAL SPENT TWO DIVERSE
SUPPLIERS. WE ARE REQUIRING
DIVERSITY AND INCLUSION.
COMMITMENTS FROM ALL OF US
SUPPLIERS WERE REQUEST PROPOSALS
$500,000 AND WE ARE CHAMPIONING
KINDERGARTEN TO CAREER PROGRAMS
I WOULD LIKE TO SHARE WITH YOU
SOME NOTABLE AREAS OF PROGRESS
IN 2022, STARTING WITH OUR
FOSTERING BELONGING COMMITMENTS.
IN 2022. WE REACHED THE HIGHEST
REPRESENTATION OF BLACK AND
LATINO EMPLOYEES AND GENETICS
HISTORY. WE LAUNCHED IN ASIAN
LEADERSHIP ACADEMY TO ACCELERATE
THE GROWTH OF ASIAN LEADERS THAT
GENETIC IN COOPERATION WITH
MCKINSEY AND COMPANY. THE FOCUS
OF THE EXECUTIVE LEADERSHIP AND
MANAGEMENT ACCELERATION EFFORTS
IS TO TAP TO GENETICS. OAN RANK
RANKS TO MIRROR ASIAN
REPRESENTATION EARLIER LEVEL
JOBS. ANOTHER PROGRAM THAT WE
LAUNCHED IN 2022 IS A GENETIC
LEADERSHIP FOR EXECUTIVE
ADVANCEMENT AND DEVELOPMENT,
KNOWN AS A G LEAD PROGRAM IN
COLLABORATION WITH COLUMBIA
BUSINESS SCHOOL EXECUTIVE
EDUCATION. THE ONLY PROGRAM IS
DESIGNED TO STRENGTHEN AND
ADVANCED LEADERSHIP SKILLS AND
CAPABILITIES AS SENIOR BLACK AND
LATINO TALENT AND GENETIC WHERE
THE GENE LEAD PARTICIPANTS ARE
CHALLENGED THROUGH IN PERSON
MODULES TO HELP ENHANCE SKILLS
IN A LEADERSHIP TOOLKIT, THEY
CAN LEVERAGE FOR CONTINUED
PROFESSIONAL CAREER GROWTH. I'M
PROUD TO SHARE THAT IN 2022. WE
WELCOME A DIVERSE GROUP OF
INTERNS AND FELLOWS 20.2% OF
INTERNS IN 16.8% OF POSTDOCTORAL
FELLOWS, IDENTIFIED AS BLACK OR
LATINO, REPRESENTING 7% IN 9%
INCREASED RESPECTIVELY SINCE THE
LAUNCH OF OUR 2025 COMMITMENTS.
NOW TURNING OUR 22 ARE
TRANSFORMING SOCIETY PILLAR. I
WANT TO SHARE WITH YOU. THIS IS
SOMETHING THAT WE'RE VERY PROUD
OF GENETIC AND WE AS OF 2022, WE
COMMITTED $805 MILLION OF
EXTERNAL SPEND TOO DIVERSE
SUPPLIERS. THIS REPRESENTS A
70.5 MILLION INCREASE IN
EXTERNAL SPEND WITH DIVERSE
SUPPLIERS SINCE 2020 WE LAUNCHED
THE DIVERSE SUPPLIER MENTORING
PROGRAM IN MENTORED A DIVERSE
SUPPLIERS FROM MINORITY BUSINESS
EMPLOYEE ENTERPRISES, WOMEN
OWNED DISABILITY OWNED AND L G B
T Q. PLUS ON BUSINESSES. AS WELL
AS INVESTED OVER $40 MILLION IN
HEALTH, EQUITY AND DIVERSITY IN
STEM RELATED CHARITABLE GIVING.
I WOULD LIKE TO HIGHLIGHT
GENETIC SIGNATURE KINDERGARTEN
TO 12TH GRADE STEM PROGRAM,
WHICH WE LAUNCHED IN 2017 AND
HAVE INVESTED $60 MILLION IN
MORE THAN 65,000 EMPLOYEE
VOLUNTEER HOURS. TO DISMANTLE
SYSTEMIC BARRIERS TO SEND
EDUCATION IN KOREA'S FOR
HISTORICALLY MARGINALIZED AND
UNDERREPRESENTED GROUPS. FUTURE
LAB IS A SCIENCE EDUCATION
PARTNERSHIP WITH SOUTH SAN
FRANCISCO SCHOOLS WHERE WE'VE
REACHED MORE THAN 8000,
PREDOMINANTLY LATINO IN FIRST
GENERATION STUDENTS ANNUALLY AND
INSPIRE THEIR CURIOSITY ABOUT
SCIENCE AND MEDICINE. I HAVE NO
IS A 93% OF THE PARTICIPANTS
REPORTED MORE INTEREST IN
PURSUING STEM AFTER THE PROGRAM.
GIVEN THE SUCCESS OF THE FUTURE
LAB PROGRAM IN SOUTH SAN
FRANCISCO IN 2022, WE INTRODUCED
FUTURE LAB PLUS 10 MILLION
NATIONAL EXPANSION OF GENETICS,
LOCAL FUTURE LAB PROGRAM. THE
PROGRAM OFFERS A TWO YEAR OPEN
ACCESS BIOTECH CURRICULUM FOR
HIGH SCHOOL STUDENTS THAT IS
ACCESSIBLE, ENGAGING AND EQUITY
EQUITY CENTERED. IT ALSO HAS A
PROFESSIONAL LEARNING COMMUNITY
THAT SUPPORTS TEACHERS,
PROFESSIONAL DEVELOPMENT,
STIPENDS, EQUIPMENT AND SUPPLIES
TO ENGAGE STUDENTS IN CAREER
AWARENESS EXPLORATION. INDUSTRY
ALIGNED SKILL DEVELOPMENT. THE
OUTCOME OF THE FUTURE LAB
PROGRAM IS THAT MORE THAN 98% OF
THE GENETIC FOUNDATION SCHOLARS
COMPLETE THEIR UNDERGRADUATE
EDUCATION IN FOUR YEARS COMPARED
TO COLLEGE COMPLETION RATES OF
LESS THAN 22% FOR FIRST
GENERATION COLLEGE STUDENTS,
STUDENTS OF COLOR STUDENTS FROM
LOW INCOME BACKGROUNDS. ANOTHER
EXAMPLE THAT HAVE GENETIC IS
WORKING TO INCREASE DIVERSITY IN
THE NEXT GENERATION OF
SCIENTISTS IS OUR PARTNERSHIP
WITH SAN FRANCISCO STATE
UNIVERSITY IN 2019 GENETIC
AWARDED SAN FRANCISCO STATE A
HISTORIC $10.5 MILLION GRANT
OVER FIVE YEARS TO SUPPORT 100
UNDERREPRESENTED IN LOW INCOME
UNDERGRADUATE AND MASTER
STUDENTS PER YEAR. IN THEIR
TRANSITION INTO MASTERS OR PHD
PROGRAMS, IN ADDITION TO
SUPPORTING 100 UNDERREPRESENTED
STUDENTS A YEAR, THE SAN
FRANCISCO STATE UNIVERSITY
UNIVERSITY PARTNERSHIP ALSO
INCLUDES THREE YEAR INNOVATIONS.
WITH THE FIRST ONE IS A PILOT
THAT FOCUSES ON FRESHMAN AND
SOPHOMORE STUDENTS IN THE SECOND
IS A COMPUTATIONAL DATA
SCIENTISTS INITIATIVE PROMOTING
INCLUSIVITY IN COMPUTING
PROGRAM. BY PROVIDING FINANCIAL
AND ACADEMIC SUPPORT, AS WELL AS
ADDITIONAL RESOURCES SUCH AS
MENTORING AND REACH EXPERIENCES
. THIS PROGRAM ENABLES STUDENTS
TO COMPLETE THEIR DEGREES
FASTER. AND BETTER POSITION FOR
SUCCESS IN PHD PROGRAMS IN THEIR
CAREERS AT THE GRADUATE LEVEL 58
OF THE 61 UNDERREPRESENTED
STUDENTS SUPPORTED BY THE
PROGRAM HAVE GONE TO PHD
PROGRAMS. WHILE WE ARE PROUD OF
THE PROGRESS WE'VE MADE IN THE
HARD WORK UNDERTAKEN BY
INDIVIDUALS AND TEAMS ACROSS
GENETIC THAT HAS MOVED US CLOSER
TO ACHIEVING OUR COMMITMENTS. WE
ALSO ACKNOWLEDGED THAT THERE'S
STILL MORE WORK TO DO THROUGH
2025 AND BEYOND. WE INTEND TO
HOLD OURSELVES ACCOUNTABLE AND
REMAIN FOCUSED ON FOSTERING
BELONGING. ADVANCING INCLUSIVE
RESEARCH AND HEALTH, EQUITY AND
TRANSFORMING SOCIETY THAT WE CAN
MAKE GOOD ON OUR PROMISE TO DO
WHAT PATIENTS NEED NEXT. THANK
YOU AGAIN FOR THE OPPORTUNITY TO
SPEAK WITH YOU TODAY AND FOR THE
WORK THEY ALL OF YOU ARE DOING
HERE IN SACRAMENTO AND IN YOUR
DISTRICTS TO SUPPORT DIVERSITY,
EQUITY AND INCLUSION. I AM HAPPY
TO ANSWER ANY QUESTIONS OR
FOLLOW UP INDIVIDUALLY WITH THE
CHAIR. OR THE MEMBERS AND ANY
SPECIFIC MATTERS. THANK YOU VERY
MUCH, AND I WANT TO WELCOME AS
WELL AS SOME WOMAN, DAVIES. WE
HAD OPENING COMMENTS BEFORE AND
IF YOU'D LIKE TO FEEL FREE TO
MAYBE TAKE A TAKE A SECOND.
HAPPY TO RECEIVE OR IF YOU HAVE
ANY QUESTIONS FOR OUR PANEL,
THANK YOU. FIRST OF ALL, I HAVE
TO START BY SAYING YOUR
ENTHUSIASM IN THE EARLY
AFTERNOON IS UNBELIEVABLE. IT
WAS LIKE HAVING A CUP OF COFFEE
LISTENING TO YOU. SO I ACTUALLY
SAY THANK YOU. IT'S GREAT TO SEE
AND AGAIN WITH THE SPEAKERS,
VERY INFORMATIVE, GREATLY
APPRECIATE IT. AND I GUESS ONE
OF THE QUESTIONS I DO HAVE IS
THEY SAID. WE ARE SEEING
CONCERNS WITH SHORTAGE IN
MEDICINE. I KNOW I'VE GOT
FRIENDS THAT ADROLL WITH THEIR
KIDS AND THINGS LIKE THAT IS
THAT BECAUSE OF THE PRICE
INCREASE IN JUST NOT BEING ABLE
TO ACTUALLY PRODUCE IT IN ORDER
TO ACTUALLY LIKE WE HAVE TO MAKE
A PROFIT, EVERY BUSINESS HAS TO
MAKE A PROFIT IN ORDER TO
ACTUALLY GO, YOU KNOW. FURTHER
WITH IT, SO I'M CURIOUS IF
THAT'S WHAT YOU'RE SEEING RIGHT
NOW. AND IS THERE ANY, UH,
ANYTHING IN THE FUTURE THAT
WE'RE GOING TO SEE IS A CHANGING
ARE WE GONNA, YOU KNOW, BE ABLE
TO BE ABLE TO HAVE PRESCRIPTIONS
FILLED, YOU KNOW? NORMALLY YES.
THANK YOU FOR YOUR QUESTION. I
CAN'T SPEAK TO ANY SPECIFIC
PRODUCTS. BUT SUPPLY CHAIN
RESILIENCY IS SOMETHING THAT THE
INDUSTRY IS INCREASINGLY FOCUSED
ON. I THINK IT IS TOO EARLY TO
TELL IF PRICE CONTROLS ARE FULLY
HAVING THE IMPACT. VERSUS YOU
KNOW RESIDUAL IMPACTS BECAUSE OF
THE COVID 19 PANDEMIC OR JUST
GENERAL SUPPLY CHAIN
INTERRUPTIONS. THERE'S A LOT
GOING ON AT THE FEDERAL LEVEL TO
ENSURE THERE ARE SAFEGUARDS
AGAINST THIS SO BOTH ALONG
WITHIN POLICIES TO INCENTIVIZE
INVESTMENT IN NEW DRUGS, IT'LL
DEFINITELY BE POLICIES AS WELL.
WILL DIRECTLY IMPACT OUR SUPPLY
CHAIN SECURITY. THANK YOU FOR
YOUR QUESTION. THANK YOU. AND I
MISS CAPTAIN, IF YOU HAD ANY
QUESTIONS IN MIND AT THE MOMENT.
WELL IF THIS GENERATES ANY OTHER
QUESTIONS, I HAD SEVERAL THANK
YOU AGAIN FOR ALL THE
PRESENTATIONS ARE REALLY HELPFUL
OVERVIEW AND SOME AREAS ON
WORKFORCE DEVELOPMENT. SOME OF
THE POLICY CONSIDERATIONS THAT
WE WANT TO BE ABLE TO THINKING
ABOUT GOING FORWARD AND BROAD
OVERVIEW OF THE INDUSTRY. AND
I'M WONDERING, HOW DO YOU SEE IF
YOU'RE AWARE THE TRENDS THAT
WE'RE SEEING HERE IN CALIFORNIA
FOR NEW COMPANIES OR JOB JOB
POSITIONS? OVER THE LAST COUPLE
OF YEARS, AND IN PARTICULAR,
MAYBE IN COMPARISON TO OTHER
AREAS, OTHER CLUSTERS IN THE
COUNTRY OR IN THE WORLD. UM I
UNDERSTAND THINGS ARE CAN BE
CYCLICAL, UM, CAN ALSO BE
AFFECTED BY WORLDWIDE EVENTS. SO
IT'S CALIFORNIA BEEN GROWING
PROPORTIONALLY OR HAVE WE
STAGNATED WHERE WE AT? GREAT
EXCELLENT QUESTION. AND NOT ONLY
DO I HAVE CALIFORNIA, BUT I HAVE
NATIONAL AND INTERNATIONAL DATA.
AND SO I'M HAPPY TO REPORT THAT
CALIFORNIA HAS PERFORMED BETTER
THAN THE REST OF THE COUNTRY AND
THE WORLD. AND FOR A COUPLE OF
REASONS. ONE IS IT'S GOTTEN MORE
EXPENSIVE TO DEVELOP NEW DRUGS
AND MEDICAL EQUIPMENT, AND THE
SOURCE OF THE MONEY HAS BEEN
HERE. AND SO THE MAJORITY OF
FUNDING HAS HIS ORIGINATED HERE
IN THE IN CALIFORNIA AND
CONTINUES TO DRIVE THE INDUSTRY
FORWARD AND NUMBER TWO AND THIS
IS PROBABLY MOST IMPORTANT. WE
HAVE SUCH A DIVERSE ECONOMY THAT
WHEN NEW DRUGS AND NEW DEVICES
ARE DEVELOPED THEIR RELIANT ON
THE OTHER SECTORS SO THEY'RE
RELYING ON SOFTWARE, AS I SAID
EARLIER, AND ELECTRONICS AND
SENSORS AND ROBOTICS SO MANY OF
THESE CUTTING EDGE INNOVATIONS
IN OTHER SECTORS ARE DRIVING AND
SUPPORTING OUR INDUSTRY. SO
THAT'S BEEN THAT'S PROBABLY THE
THING THAT'S REALLY SINGLED US
OUT THE MOST AS A STATE. THANK
YOU ON ON THE COST CONVERSATIONS
, AND OF COURSE, ALL OF THIS IS
INTERSECTED WITH THE COST OF
DEVELOPMENT, BUT ALSO THE COST
IS PASSED ON TO CONSUMERS AND
PATIENTS AND WE GET INTO, UM
EQUITY CONVERSATIONS, ESPECIALLY
IF THERE'S A NEW MEDICINE,
PARTICULARLY FOR A RARE DISEASE.
UM AND SO SUCH AS SOMEBODY WHO
IS OF LOWER INCOME MEANS, OR
MAYBE HAVING A LITTLE BIT MORE
TROUBLE FINDING THE ABILITY TO
BE ABLE TO PAY FOR THAT, UM, THE
OFFSETS THAT WE NEED TO THINK
ABOUT THROUGH POLICY OR ANY
OTHER WAY IS TO BE ABLE TO
PROVIDE EQUITY TO MEDICINES FOR
EVERYBODY. AND YOU TALKED A LOT
ABOUT PRICE CONTROLS, BUT YOU
ENDED YOUR PRESENTATION AS WELL.
TALKING ABOUT THE NEED FOR
GOVERNMENT TO BE ABLE TO FOCUS
ON THE POLICY AND THE REGULATORY
ENVIRONMENT THAT SUPPORTS
INDUSTRY. AND SO, UM, PRICE
CONTROLS ARE I GET THE IMPACT OF
THAT VERY CLEAR THROUGH YOUR
PRESENTATION. ON BALANCE WITH
EVERYTHING ELSE THAT WE'RE
TRYING TO ACHIEVE FOR THE ACCESS
TO NEW THERAPEUTICS AT A COST
THAT INDIVIDUALS CAN AFFORD.
WHAT ARE SOME OTHER, MAYBE
COUNTERVAILING, UM, THINGS THAT
WE SHOULD BE THINKING ABOUT IN
THE POLICY OF THE REGULATORY
FRAMEWORKS THAT WOULD HELP
INFORM US FOR ALTERNATIVES TO
CONSIDERATIONS LIKE PRICE
CONTROLS. THANK YOU FOR YOUR
QUESTION. YES IT'S A IT'S A GOOD
QUESTION, BECAUSE OUR INNOVATIVE
MEDICINES ARE ONLY AS USEFUL AS
THE PATIENTS WHO CAN ACCESS
THEM. SO THERE ARE OTHER WAYS
AND OTHER POLICIES. UM THAT CAN
HELP ENABLE ACCESS WITHOUT
HARMING INNOVATION. SOME OF
THOSE INCLUDE MAKING SURE THAT
ANY REBATES ARE PASSED ON TO
PATIENTS DIRECTLY AT THE POINT
OF SALE, AND IT'S ALSO
ADDRESSING THE MIDDLEMAN IN THE
SYSTEM, SUCH AS PHARMACY BENEFIT
MANAGERS AS WE KNOW THAT THE TOP
THREE PBMS OAN ALMOST 80% OF
THEM. MARKET AS WELL AS PATIENTS
ARE FACING REALLY HIGH OUT OF
POCKET COSTS AT THE POINT OF
SALE. UM 60% OF COMMERCIALLY
INSURED PATIENTS. UM, IS THERE
WHAT THEY'RE PAYING IS BASED ON
THE FULL PRICE AND NOT THE NET
PRICE. SO THERE'S A LOT OF, UM
PATIENTS THAT ARE NOT GETTING
THE DISCOUNTS THAT THESE
PHARMACY BENEFIT MANAGERS ARE,
SO I THINK IT IS LOOKING AT THE
POINT OF SALE AND LOOKING AT
MIDDLEMEN THROUGHOUT THE HEALTH
CARE SYSTEM THAT COULD HELP WITH
THIS. I THINK THAT COULD BE THE
SUBJECT OF ITS OWN HEARING AS
WELL THAT WE DEFINITELY WOULD
WANT TO DIVE INTO A LITTLE MORE
ON DIVERSITY AND EQUITY. I'M
WONDERING THAT IS WONDERFUL THAT
WE ARE THINKING A LOT MORE
THROUGHOUT OUR COMPANY'S ABOUT
GROWING THAT WORKFORCE, BUT I'VE
ALSO HEARD, UM, OFTEN,
ANECDOTALLY THAT FOR LEADERSHIP
AND FOR ENTREPRENEURS, THE
ACCESS TO VENTURE CAPITAL THIS
MAYBE NOT SOMETHING THAT MANY
MEMBERS OF THE COMMUNITY HAVE
BEEN ABLE TO FIND THAT LEVEL OF
ACCESS. SO WHERE ARE YOU?
SEEING? WHAT D I OUTREACH WHEN
IT COMES TO ACTUALLY LEADING, UH
, A NEW STARTUP OR LEADING ON
BECOMING A LEADER WITHIN A
COMPANY. THAT'S A GREAT
QUESTION, RIGHT? AND YOU KNOW I
DON'T KNOW. HAVE THAT
INFORMATION. YOU KNOW, I COULD
HAVE MAKE SURE THAT THAT
INFORMATION IS MAKES IT TO YOUR
OFFICE. BUT EVEN ONE THING IF I
WANT TO BRING YOU BACK TO THE
INFORMATION THAT I CAN SPEAK TO,
AS AN EXAMPLE, RIGHT, AND I
DIDN'T MENTION THE SUPPLIER
DIVERSITY, RIGHT AND YOU KNOW
YOU'RE GOING TO SAY VERONICA,
BUT THAT'S VENTURE CAPITAL
VERSUS SUPPLIER DIVERSITY, BUT I
THINK IF YOU HEAR ME OUT IT
SHOWS THE EXAMPLE OF BEING
WILLING. TO HAVE THOSE
MENTORSHIP PROGRAMS RIGHT BEING
WILLING TO DO BEST PRACTICE
SHARING, AND THAT IS SOMETHING
THAT A GENETIC WE'RE TRYING TO
DO, AND WE'RE DOING THAT WITH
THE SUPPORT DIVERSE SUPPLIERS
WHERE WE ARE ASKING THOSE
DIVERSE SUPPLIERS ARE YOU
THINKING OF DIVERSITY, EQUITY
AND INCLUSION. AND MOST OF THE
DIVERSE SUPPLIERS ARE NOT. AND
BECAUSE WE ARE HAVING THIS
MENTORSHIP PROGRAM WHERE WE ARE
HELPING OUR SUPPLIERS THINK
ABOUT HOW DO YOU EVEN PUT A
DIVERSITY AND INCLUSION PLAN
TOGETHER? YOU KNOW MORE THAN 80%
OF THE SUPPLIERS THAT WE WORK
WITH HAVE A DIVERSITY EQUITY AND
INCLUSION PLAN. IT'S NOT AN
AFTERTHOUGHT. SO THAT IS
SOMETHING THAT GENETIC AND OTHER
INDUSTRY MEMBERS CAN START
DOING. AND WE HAVE THOSE
CONVERSATIONS AND ENSURE THAT
DIVERSITY, EQUITY AND INCLUSION
IS EMBEDDED IN EVERYONE'S
BUSINESS, EVEN WHEN YOU ARE
STARTING AT THE ADVENTURE,
CAPITALIST STATE. THANK YOU.
YEAH, I LOOK FORWARD TO ANY
FURTHER THOUGHTS AS WELL. IT'S
OBVIOUSLY SOMETHING WE WANT TO
THINK ABOUT AS WE'RE PROMOTING
ALL LEVELS OF INDUSTRY AND SOME
OF THESE OPPORTUNITIES ARE THERE
. IF THERE IS ANY OTHER SOMEONE
WOULDN'T HAPPEN. SO I JUST HAVE
A QUESTION AS IT RELATES TO
MANUFACTURING BECAUSE AS I
UNDERSTAND IT IN THE IN THE
PHARMA WORLD, WE'RE DOING A
WHOLE LOT MORE MANUFACTURING
LOCALLY AND IN THE STATE THAN WE
USED TO. AND I'D LIKE TO KNOW.
HOW MUCH HAVE WE GROWN BY?
BECAUSE ISN'T IT TRUE THAT WE
HAVE CERTAIN MOLECULES THAT CAN
ACT AS HOSTS? AND WE DO A WHOLE
LOT MORE NOW? JUST CONSTRUCTING
ON THAT SAME HOUSE, SO SORT OF
STREAMLINED THE PROCESS OF MY ON
THE WEIGHT, RIGHT WAVELENGTH
HERE AND A COUPLE OF THINGS.
COUPLE THINGS ARE HAPPENING. AND
THAT'S WHY THE DIVERSITY OF THE
INDUSTRY IS SO IMPORTANT TO
GRASP BECAUSE THE MEDICAL DEVICE
AND EQUIPMENT COMPANIES REALIZED
THAT THEY SUPPLY CHAINS WERE
CONSTRICTED, AND THEY'VE SEEN
THAT OVER THE PAST FIVE YEARS,
IN PART BECAUSE OF TRADE
POLICIES WITH OTHER PARTS OF THE
WORLD. BUT ALSO JUST SHORTAGES
OF CUTTING EDGE DEVICES AND
COMPONENTS. SO MORE AND MORE OF
THE COMPANIES I WORK WITH HAVE
BEEN LOOKING TO SUPPLY THINGS
LOCALLY AND TO SOURCE THINGS
LOCALLY. SO THAT'S NUMBER ONE
NUMBER TWO. WE'VE SEEN A SHIFT
AND YOU'RE GOING TO HEAR MORE
ABOUT THIS. IN THE SECOND PANEL,
WE'VE SEEN A SHIFT TO SELLING
GENE THERAPY. AND SELLING GENE
THERAPY BY ITS NATURE IS LOCAL
AND LOCALIZED, AND SO I THINK
THAT'S BEEN AN IMPORTANT MOVE,
ESPECIALLY HERE HERE IN
CALIFORNIA, AND THEN THE THIRD
POINT AND THIS GOES TO SOME OF
THE THINGS MY PANEL MEMBERS HAVE
SAID, AND THAT IS WE HAVE A
TREMENDOUS DEMAND SIDE HERE IN
THE STATE WITH KAISER AND UCSF
AND STANFORD AND ALL OF THE
OTHER SYSTEMS IN THE STATE. AND
THOSE PLACES ARE USING THE
CUTTING EDGE THERAPIES AND
DRUGS. AND SO THAT'S ENABLING US
TO DEVELOP MORE AND MORE THINGS
HERE WITHIN THE STATE, TOO. SO I
THINK THOSE THREE DRIVERS
CONSTRICTED SUPPLY CHAINS THAT
PEOPLE HAVE BEEN ADDRESSING
NUMBER ONE, A SHIFT TO SELLING
GENE THERAPY AND NUMBER THREE IS
THAT GREAT LOCAL DEMAND WE HAVE
IN OUR HEALTH SYSTEMS. AND IF I
MAY FOLLOW UP, UM HAVE YOU SEEN
THAT? A YOU'RE MORE STREAMLINED
NOW SO THAT THE PIPELINE IS
BECOME A BIT SHORTER. CAN I BE
THAT OPTIMISTIC? ESPECIALLY
ESPECIALLY. I KNOW YOUR ROOTS
ARE SOUTH SAN FRANCISCO. AND SO
WHAT WE'RE SEEING IS WE'RE
SEEING BETTER RETURNS ON THE
INVESTMENT BECAUSE OF CALL IT
MORE SHOTS ON GOAL. BY SMALLER,
MEDIUM SIZED COMPANIES THAT ARE
IN PROXIMITY TO SOME OF THE
LARGER COMPANIES. OKAY? I DON'T
THINK I ANSWERED YOUR FIRST
QUESTION. QUESTION WELL ENOUGH.
LET ME ADDRESS THAT A LITTLE
MORE. WE'VE DEFINITELY SEEN AN
INCREASE IN EMPLOYMENT IN
MANUFACTURING FOR DEVICES,
EQUIPMENT AND EVEN IN NEW DRUG
DEVELOPMENT. I GUESS IT SORT OF
BEGS THE QUESTION. IF YOU CAN
STREAMLINE, DOES IT AFFECT THE
PRICE AT SOME POINT TO BRING IT
DOWN? AND PERHAPS MORE? NEWER
DRUGS ARE MORE ACCESSIBLE TO
FOLKS AND YEAH, IT'S A GOOD
POINT. UM I THINK THAT RIGHT NOW
WE CAN THINK OF OUR SYSTEM AS
PRICING TO THE VALUE THAT IT
BRINGS, AND NOT NECESSARILY THE
COST OF JUST THE PRODUCTION AND
COST INPUTS. AND I THINK THAT IS
WHAT THIS SYSTEM SHOULD CAN
RETAIN AND SUSTAIN ITSELF ON.
YOU CAN SEE THIS FEDERAL
GOVERNMENT TRYING TO GO MORE
TOWARDS OKAY, JUST THE COST OF
THE INPUT, BUT THAT'S NOT
NECESSARILY A SYSTEM THAT
REWARDS INNOVATION AND CONTINUES
TO INCENTIVIZE THE NEW AND NEXT
AND BETTER THING. FAIR ENOUGH.
WELL THANK YOU AGAIN VERY MUCH A
LOT MORE THAT WE CAN TEASE, BUT
WE ARE GOING TO GO AHEAD AND
BITE A PER SECOND PANEL AND LOOK
FORWARD TO WORKING WITH YOU OUT
IN THE COMMUNITY ON ANY FOLLOW
UP QUESTIONS THAT WE MIGHT HAVE.
UM AT THIS TIME, WE'RE GOING TO
TALK A LITTLE BIT ABOUT LOOKING
FORWARD. SOME OF THE INNOVATION
PIPELINE AHEAD OF US WOULD LIKE
TO WELCOME JULIAN MCCALL, THE
DIRECTOR. THE CALIFORNIA
INITIATIVE TO ADVANCE PRECISION
MEDICINE, AND DR JOE ALVEAR
KNOWS THE VICE PRESIDENT OF
GOVERNMENT AFFAIRS WITH THE CITY
OF HOPE. AND WHEN YOU'RE
SITUATED, YOU MIGHT BEGIN YOUR
PRESENTATION. THANK YOU SO MUCH
CHAIR WARD AND MEMBERS OF THE
COMMITTEE. IT'S A TRUE PRIVILEGE
TO BE HERE FOR YEARS AFTER I HAD
THE PLEASURE OF PRESENTING FOR
YOUR OTHER PRECISION MEDICINE,
INFORMATIONAL HEARING SO LOVELY
TO, UH, LOVELY TO MEET YOU ALL.
UM AS CHAIR WARD INTRODUCED I'M
JULIANNE MCCOY AND THE DIRECTOR
OF PRECISION MEDICINE FOR THE
GOVERNOR'S OFFICE OF PLANNING
AND RESEARCH. IT'S THE
GOVERNOR'S ENTITY FOR LONG RANGE
PLANNING, AND WE REPRESENT THE
HEALTH PORTFOLIO. NEXT SLIDE,
PLEASE. AH IF YOU'RE NOT
FAMILIAR WITH PRECISION MEDICINE
, OR MAYBE YOU ARE WE USE
PRECISION MEDICINE AS AN
UMBRELLA TERM, UM, SYNONYMOUS
WITH PERSONALIZED MEDICINE,
INDIVIDUALIZED MEDICINE,
PRECISION POPULATION HEALTH AND
, UM, PURSES, PRECISION, PUBLIC
HEALTH AND EVERY ITERATION, UM,
CAN ESSENTIALLY BE BOILED DOWN
TO THE RIGHT TREATMENT. AT THE
RIGHT TIME. FOR THE RIGHT
PATIENT. AND YOU CAN EXTEND THAT
OUT TO IN THE RIGHT PLACE BY THE
RIGHT HEALTH OR SOCIAL CARE
PROVIDER. UM YOU KNOW, WITH THE
RIGHT METHOD WITH THE RIGHT
CULTURAL COMPETENCY, ETCETERA,
ETCETERA, ETCETERA. NEXT SLIDE,
PLEASE. YOU CAN THINK OF THIS AS
MOVING FROM A ONE SIZE FITS ALL
HEALTHCARE SYSTEM INSTEAD OF
HAVING A CLINICAL TRIAL OF
10,000 PATIENTS WHERE THE
TREATMENT THAT WORKS FOR 30% OF
PATIENTS IS THE ONE THAT IS THEN
PRESCRIBED TO ALL PATIENTS WITH
THAT DIAGNOSIS. LET'S ACTUALLY
USE THE TECHNOLOGICAL WINDOWS
THAT WE HAVE INTO WHAT MAKES
PATIENTS DIFFERENT AND STRATIFY
THEM INTO THE GROUPS TO KNOW VIA
WHAT'S CALLED PHARMACOGENOMICS
OR OTHERWISE. WHICH UM, WHICH
PATIENTS? THOSE TREATMENTS ARE
LIKELY TO SERVE. IF YOU COULD
CLICK NEXT THE THREE TIMES THIS
IS NOT JUST LIMITED TO GENETICS
. IT'S NOT JUST LIMITED TO Ó
MIX, WHETHER IT'S PROTEOMICS OR
CONNECT ATOMICS OR YOU NAME THE
O MIX, BUT ALSO THE ENVIRONMENT
IN WHICH WE LIVE IF YOU HAVE A
PATIENT LIVING NEXT TO A FREEWAY
, THEY ARE MUCH MORE LIKELY TO
HAVE SOME KIND OF RESPIRATORY
DISEASE THAN SOMEONE LIVING OUT
IN THE COUNTRYSIDE, BREATHING
FRESH AIR EVERY DAY. SIMILARLY
THOSE WHO ARE EXERCISING VERSUS
THOSE OF US LIKE MYSELF WHO
BARELY GET THEMSELVES TO WORK
EVERY DAY. UM, AS WELL AS
NUTRITION IF YOU ARE EATING RED
MEAT EXCLUSIVELY THAT WILL PUT
YOU AT RIGHT IN, UM THAT WILL
MAKE YOU MUCH MORE VULNERABLE TO
A WHOLE HOST OF CONDITIONS. NEXT
SLIDE, PLEASE. SO YOU CAN KIND
OF THINK OF THE PRECISION
MEDICINE SPECTRUM. UM AS MOVING
FROM NEXT SLIDE, UM, SEQUENCING
A TUMOR TO REALLY PERSONALIZE
OUR UNDERSTANDING OF THAT
PERSON'S TUMOR. CANCER IS, AFTER
ALL, A GENETIC DISEASE, A
GENETIC MUTATION LEAD TO
UNCONTROLLED GROWTH OF CELLS
THAT LED TO A TUMOR. UM BUT YOU
CAN ALSO THINK OF PRECISION
MEDICINE. NEXT SLIDE. AS OH, I'M
SO SORRY. BACK ONE SLIDE. THANK
YOU RIGHT AS AVOIDING
PRESCRIBING A MEDICATION THAT
NEEDS TO BE REFRIGERATED TO
SOMEONE WHO IS ON HOUSED.
UNDERSTANDING THE WHOLE PERSON
AND NOT JUST THE BIOLOGICAL
MAKEUP BECAUSE WE ARE HUMBLED
OVER AND OVER AND OVER AGAIN BY
THE PREDICTIVE POWER OF SOCIAL
DETERMINANTS OF HEALTH ON OUR
CURRENT HEALTH STATUS, 85%
APPROXIMATELY COMPARED TO 15%
PREDICTIVE. WHEN YOU KNOW YOUR
ENTIRE GENOMIC SEQUENCE NEXT
SLIDE, PLEASE. UM, WHY IS THIS
DIFFICULT BECAUSE HEALTH IS
COMPLICATED. UM, WE ARE JUST NOW
STARTING TO DEVELOP WHAT ARE
CALLED KNOWLEDGE NETWORKS THAT
ACTUALLY LIKE GOOGLE MAPS LAYERS
ON THE ENVIRONMENT IN THE
ENVIRONMENT IN WHICH YOU LIVE.
YOUR GENETIC SEQUENCE. WHETHER
THE GENES ARE TURNED ON OR
TURNED OFF, RIGHT. WHAT'S CALLED
THE PROTEOMICS RIGHT OF YOUR
SYSTEM? UM, YOUR MICROBIOME IX,
RIGHT? THE GUT MICROBES THAT ARE
CONNECTING TO YOUR BRAIN AND
EVERY OTHER ORGAN IN YOUR BODY
RIGHT TO DETERMINE HOW THAT
NUTRITION IS PROCESSED, UM, AS
WELL AS A WHOLE HOST OF OTHERS,
RIGHT? IN ADDITION TO HEALTH
BEHAVIORS, AND, UM, THE TYPE OF
MEDICAL CARE WHAT PUBLIC HEALTH
POLICIES ARE IN PLACE TO PREVENT
EXPOSURE TO ONE FORM. OF ISSUE
OR ANOTHER NEXT SLIDE, PLEASE.
AND WHY NOW? WHY DO WE SEE THIS
EXTENSIVE GROWTH? PRECISION
MEDICINE? WELL TAKE A LOOK. NEXT
SLIDE, PLEASE. THE GENOMIC
SEQUENCING HAS GONE. HAS
PLUMMETED IN COST RIGHT FROM
WHAT WAS ORIGINALLY $100 MILLION
FOR A SINGLE GENOME TO NOW
FLIRTING WITH $1000 PER GENOME.
YOU ALSO, UH NEXT SLIDE, PLEASE.
UM WE ALSO HAVE A MUCH BETTER
UNDERSTANDING AND ABILITY TO
ACTUALLY TRACK THE SOCIAL
DETERMINANTS OF HEALTH THAT
WE'RE NOT PUTTING ALL THE BURDEN
ON OUR PHYSICIANS TO KEEP TRACK
AND STANDARDIZE THE TERMS IN
THEIR CLINIC AND SO, KEEPING
THAT IN MIND KEEPING THE WHOLE
PERSON IN MIND AS WE'RE TRYING
TO HELP GUIDE THIS KIND OF NEXT
GENERATION THIS NEXT STEP IN
HEALTHCARE. UM NEXT SLIDE,
PLEASE. SO WHAT'S CALIFORNIA
DOING TO HELP GUIDE THIS NEXT
GENERATION OF HEALTHCARE? WELL
IN PARALLEL TO THE COUNTLESS
EXCEPTIONAL COUNTY. STATE
FEDERAL PROGRAMS ADVANCING
HEALTHCARE WE TAKE A STEP
UPSTREAM AND LOOK AT THE
RESEARCH. WHERE IS RESEARCH
DEVELOPING ADDITIONAL TOOLS?
ADDITIONAL OPTIONS THAT WE HAVE
IN ORDER TO DEPLOY FOR ANY GIVEN
CONDITION FOR ANY GIVEN SETTING
NEXT SLIDE. LET'S SAY, UM, SIX
PRESSES OF THE BUTTON, PLEASE.
SO WE WERE ESTABLISHED IN 2015.
WE HAVE SO FAR RECEIVED $65
MILLION OF STATE INVESTMENT THAT
HAS LED TO OVER $36 MILLION OF,
UM NON STATE FUNDS AND LEVERAGE
RESOURCES. SO THESE ARE
COMPANIES GIVING OF THEIR TIME.
UM AND OUR SERVICES AND PRODUCTS
. THIS IS THE PROJECT'S GOING
OUT. AND, UM RECEIVING FOLLOW ON
FUNDING TO REALLY AMPLIFY THE
IMPACT OF THE WORK. UM OUR BREAD
AND BUTTER IS GRANT MAKING. WE
TRY TO UNDERSTAND THIS LANDSCAPE
OF HEALTH DISPARITIES AND AGAIN
STEP UPSTREAM TO UNDERSTAND.
WHERE ARE THE GAPS THAT LEAD TO
HEALTH DISPARITIES WHO IS NOT
BEING INCLUDED. IN CLINICAL
TRIALS THAT LEAD TO DISPARATE
IMPACTS OF THE HEALTH CARE
IMPLEMENTATION. AH WE PRIDE
OURSELVES ON CROSS SECTOR AND
INTERAGENCY PARTNERSHIPS, RIGHT?
WE LIKE TO THINK OF OURSELVES
THAT OPR, THE GOVERNOR,
GOVERNORS OFFICER PLAYING
RESEARCH AS THE GLUE BETWEEN
DEPARTMENTS AND AGENCIES AND
OFFICES WHEN THERE ARE ISSUES
CROSS DISCIPLINARY OR CROSS
SECTOR AND I'LL GET MORE INTO
THAT, IN A FEW SLIDES ARE
OVERARCHING MISSION IS TO REDUCE
HEALTH DISPARITIES. NEXT SLIDE,
PLEASE. UM, SO AS I MENTIONED,
OUR GRANT MAKING IS PROLIFIC, WE
HAVE FUNDED 18 PROJECTS AND ARE
EIGHT YEARS SO FAR AND GROWING.
THOSE INCLUDE PROJECTS IN
INFECTIOUS DISEASES. IN FACT,
DOCTOR CHARLES CHIU, WHO
RECEIVED ONE OF OUR FIRST GRANTS
IN 2015, DEVELOPED AN ALGORITHM
AND AN AG NOT DISEASE, AGNOSTIC
SEQUENCING PLATFORM THAT COULD
SEQUENCE BACTERIUM, YOU KNOW, SO
BACTERIA, VIRUSES, FUNGI, ALL IN
A SINGLE SAMPLE, AND WHEN IT
CAME TIME FOR THE PANDEMIC, IT
WAS DR CHOOSE STATE FUNDED
RESEARCH IMPACTS THAT ACTUALLY
ALLOWED US TO TRACK THE
MUTATIONS IN REAL TIME
THROUGHOUT THE STATE. NOT THAT
THAT WAS A GLORIOUS MOMENT
BECAUSE OF THE STATE OF THE
WORLD, BUT YOU CANNOT DREAM OF A
BETTER OUTCOME AS A RESEARCH
FUNDER TO HAVE THAT LEVEL OF
IMPACT. UM, SO SOON AFTER
FUNDING THE RESEARCH, AS YOU'VE
HEARD, IT OFTEN TAKES BETWEEN 15
AND SOMETIMES 25 YEARS TO
DEVELOP TO SEE THE IMPACTS OF
RESEARCH IN THE WORK IN THE REAL
WORLD. NEXT SLIDE, PLEASE. UM SO
AS I MENTIONED THE SO THIS IS
ONE SUCH PROJECT THAT WE ARE
CURRENTLY FUNDING OF THE 10
ONGOING PROJECTS, LED BY UCSF
PROFESSOR DR NEED ATTACKER.
SHE'S A PEDIATRIC PULMONOLOGIST
, UM, FOCUSING ON ADVERSE
CHILDHOOD EXPERIENCES. UM
UNDERSTANDING THAT DIFFERENT
CHILDREN WILL HAVE DIFFERENT
IMPACTS TO THE SAME STIMULUS.
FOLLOWING A CHILDHOOD OF TRAUMA
. SOME WILL HAVE MENTAL HEALTH
CONDITIONS. OTHERS WILL GET AN
INFECTION EVERY MONTH. SO HOW DO
WE TEASE APART AND ACTUALLY
TREAT THE PART OF ONE'S
PHYSIOLOGY THAT IS SPECIFIC TO
THEM AGAIN. MOVING AWAY FROM
THAT ONE SIZE FITS ALL BECAUSE
NOBODY LITERALLY. NOBODY IS THE
AVERAGE PATIENT. THERE IS NO
SUCH THING AS THE AVERAGE
PERSON. IT'S A STATISTICAL TERM
. NEXT SLIDE, PLEASE. WE
RECOGNIZE THAT PARTNERSHIPS
WHICH WE REQUIRE BETWEEN
RESEARCHERS AND COMMUNITY OR
PATIENT GROUPS TO HELP ANCHOR
THE RESEARCH, OUTCOMES IN
COMMUNITY NEEDS AND COMMUNITY
PRIORITIES. THAT'S NOT SOMETHING
THEY'VE EVER BEEN ASKED OR BEEN
REQUIRED TO DO, AND SO WE'VE
DEVELOPED A CALIFORNIA PRECISION
MEDICINE ASSET INVENTORY SO FAR
INCLUDES OVER 600 ASSETS. THESE
ARE UNIVERSITIES, RESEARCH
INSTITUTES, VENTURE CAPITAL
FIRMS, EVEN JUST DATABASES RIGHT
PUBLICLY AVAILABLE DATABASES IN
ADDITION TO THE COMMUNITY
ORGANIZATIONS THAT HAVE
EXPRESSED INTEREST IN BEING PART
OF RESEARCH PROGRAMS. RIGHT IF
YOU'RE A COMMUNITY GROUP, AND
YOU SEE A PROBLEM, RIGHT, YOU
CAN GO ON TO THE CALIFORNIA
PRECISION MEDICINE ASKED
INVENTORY. NEXT SLIDE, PLEASE.
AND WE'VE MADE IT. UM VERY USER
FRIENDLY. I KNOW THAT THIS IS
FLASHING BEFORE YOUR EYES VERY
QUICKLY, BUT WE HAVE TOGGLED
VARIABLES THAT YOU CAN UM,
SPECIFY YOUR SEARCH. IF YOU'RE
ONLY INTERESTED IN CANCER IF
YOU'RE ONLY INTERESTED IN
GENETIC RESEARCH, IF YOU'RE ONLY
INTERESTED IN RESEARCH
INSTITUTES, YOU CAN MAKE SURE
THAT THAT QUERY IS EFFICIENT.
NEXT SLIDE, PLEASE. UM SO I
MENTIONED THE INTERAGENCY
COORDINATION WHEN IT CAME TIME
FOR THE SURGEON GENERAL'S OFFICE
TO PUBLISH THEIR FIRST
CALIFORNIA SURGEON GENERAL'S
REPORT. I WAS ONE OF THE THREE
CORE AUTHORS OF THAT WORK. I WAS
DR NADINE BURKE. HARRIS IS RIGHT
HANDS. NEUROSCIENTIST NOWADAYS.
INDIANA RAMOS. WE CONTINUE TO
WORK WITH HER AND THE MATERNAL
HEALTH AND ADVERSE CHILDHOOD
EXPERIENCES PROJECTS. IN
ADDITION TO SERVING ON A NUMBER
OF DIFFERENT TESTS, FORCES, UM
AND ADVISORY COMMITTEES NEXT
SLIDE, PLEASE. WHEN IT CAME TIME
FOR THE PANDEMIC, WHO IS
STEPPING UP? IT WAS THE
BIOMEDICAL SCIENTIST WITHIN THE
GOVERNOR'S OFFICE REALM, SO I
WAS HELPING TO FACILITATE THE
GOVERNOR'S COVID 19 TESTING TASK
FORCE, WHICH WAS UPHELD AS A
NATIONAL MODEL FOR HAVING MOVED
SO QUICKLY. NEXT SIDE, PLEASE.
AH SO NEW IS THIS YEAR WE'VE
BROUGHT ON NEW STAFF. MANY OF
THEM ARE IN THE AUDIENCE RIGHT
NOW, UM, TO LEAD A DEPRESSION
RESEARCH PROGRAM TO INVEST $10
MILLION OF STATE FUNDS,
ANTICIPATING THE FOLLOW ON
FUNDING AND THE LEVERAGE
RESOURCES FROM, UH INSTITUTIONS
, UM, TO SUPPORT UP TO FIVE
PROJECTS OVER THE NEXT THREE
YEARS TO AGAIN FILL THOSE GAPS
AND TRY TO NARROW THE DISPARITY
BETWEEN THOSE WHO HAVE ACCESS TO
RESOURCES AND FOR THOSE
TREATMENTS AND PREVENTION
STRATEGIES THAT WERE DEVELOPED
FOR INDIVIDUALS AND THOSE
WITHOUT NEXT SLIDE. PLEASE ALSO
KNEW IN 2023 IS A PARTNERSHIP
WITH THE NATIONAL INSTITUTES OF
HEALTH. THE PRECISION MEDICINE
INITIATIVE DEVELOPED UNDER
BARACK OBAMA CALLED ALL OF US.
WE ARE THE FIRST STATE LEVEL
PARTNERSHIP. WITH THE FEDERAL
AGENCY TO BRING MORE FOLKS FROM
UNDERREPRESENTED, UM,
COMMUNITIES WHICH LEAD TO AGAIN
OUTCOMES LIKE ONE OF THE MOST
POPULAR ONE OF THE MOST
EFFECTIVE ASTHMA MEDICATIONS
WORKS GREAT. AND WHITE CHILDREN
AND ASIAN AMERICAN CHILDREN DOES
NOT WORK AS GREAT IN LATIN X AND
BLACK, AMERICAN AND AFRICAN
AMERICAN CHILDREN AND YOU LOOK
BACK AT WHO IS INVOLVED IN
CLINICAL TRIALS LESS THAN 1%
FROM EACH OF THOSE GROUPS TAKE
ONE STEP FURTHER, WHO WAS
INVOLVED ASKING FOR TISSUE
DONATIONS LESS? I MEAN, YOU'RE
FLIRTING WITH 0% FROM BOTH OF
THOSE AH, SO THIS IS A FIVE YEAR
PROJECT THAT WE'VE JUST LAUNCHED
. UM THIS YEAR NEXT SLIDE,
PLEASE. WHAT'S REALLY EXCITING
IS THAT OUR IMPACT IS EXPANDING
WELL BEYOND CALIFORNIA'S BORDERS
. ONE MINUTE THANK YOU. SO THE
NEW DARPA MODELED HEALTH AGENCY
HEALTH RESEARCH AND DEVELOPMENT
AGENCY AT THE FEDERAL LEVEL,
CALLED R P H FOR HEALTH RESEARCH
IS UNDERWAY. AH, NEXT SLIDE,
PLEASE. AND UNDER PRESIDENT
BIDEN'S VISION, IT'S INVESTING
IN HIGH RISK HIGH REWARD
PROJECTS. ONLY NEXT SLIDE,
PLEASE. ACTUALLY A COUPLE MORE
SLIDES, REALLY FOCUSING ON
EQUITABLE OUTCOMES. ONE MORE
SLIDE. AND ONE MORE SLIDE IN
ORDER TO REACH ALL AMERICANS.
AND FINALLY, ONE MORE SLIDE. I'M
MORE THAN HAPPY TO PROVIDE THE
THESE SLIDES AND ONE MORE SLIDE
. HONORED WITH OVER 7000
LOCATIONS ACROSS THE UNITED
STATES. NEXT SLIDE, PLEASE TO
DEVELOP A HEALTH INNOVATION
NETWORK VIA REGIONAL CONVENERS
THAT REALLY BRING FORWARD LOCAL
EXPERTISE. AH, NOBODY ELSE
STEPPED UP FOR THIS. TO LEAD
THIS EFFORT. UM, IN CALIFORNIA.
IT WAS OUR OFFICE OF PRECISION
MEDICINE WERE SO EXTRAORDINARILY
PROUD TO BE LEADING THIS EFFORT
AND HAPPY TO TAKE QUESTIONS
FOLLOWING THE PANEL. THANK YOU
SO MUCH, MR CALL, AND THEN DR
ALBAN IS I TAKE IT THAT I DIDN'T
WRITE. YES YOU DID PERFECT
APPRECIATE ASSEMBLYMEMBER'S WARD
AND MEMBERS OF THE COMMITTEE.
THANK YOU SO MUCH FOR THE
OPPORTUNITY TO SPEAK WITH YOU
TODAY. I'M JOE. ALVIN IS I'M A
PROFESSOR OF HEMATOLOGY AT THE
CITY OF HOPE DOWN IN SOUTHERN
CALIFORNIA, AND I WORKED
PRINCIPALLY AS A HEMATOLOGIST,
CARING FOR PEOPLE WITH BLOOD
CANCERS AND ALSO AS A BONE
MARROW TRANSPLANT PHYSICIAN
CARING FOR PATIENTS WITH
ADVANCED CANCERS, FOR WHOM
TREATMENT WITH CHEMOTHERAPY AND
OTHER MODALITIES ARE INADEQUATE
TO MEET THEIR NEEDS. PART OF
WHAT I'D LIKE TO DO TODAY IS
LEND SOME HUMAN CONTEXT TO THE
IMPORTANCE OF WHAT YOU'RE DOING
ON THIS COMMITTEE. WE HAVE
TALKED ABOUT THE WORKFORCE
IMPLICATIONS OF BIOTECHNOLOGY,
AND WE'VE TALKED ABOUT THE KINDS
OF CONSIDERATIONS THAT GO INTO
TACKLING ISSUES OF SUCH ENORMITY
AND COMPLEXITY. BUT THE ULTIMATE
IMPACT OF THIS ISN'T REALIZED
BROADLY OR ENGINE ERIC WAY IT'S
REALIZED IN THE ABILITY OF ONE
HUMAN BEING TO BENEFIT FROM THE
THINGS THAT ARE BEING BROUGHT
FORTH TODAY WHEN I TRAINED IN
MEDICAL SCHOOL AND SUBSEQUENTLY
WENT TO RESIDENCY AND
FELLOWSHIP. PEOPLE WHO FACE TO
CANCER DIAGNOSIS LIKE MULTIPLE
MYELOMA OR ACUTE LEUKEMIA FACE
SOMETHING TRULY GRIM. PEOPLE
WITH MULTIPLE MYELOMA HAD A
MEDIAN SURVIVAL OF TWO YEARS OR
LESS, AND UNFORTUNATELY, I
PRONOUNCED PEOPLE IN THEIR
TWENTIES DEAD MYELOMA LESS THAN
ONE YEAR AFTER DIAGNOSIS. AND
FOR PEOPLE DIAGNOSED WITH ACUTE
LEUKEMIA. IN THE BEST OF
CIRCUMSTANCES WHEN I WAS
GRADUATING, 20% OR 30% COULD
SURVIVE MORE THAN A YEAR. THAT
WASN'T FOR LACK OF CARING. IT
WAS FOR LACK OF APPROPRIATE
TECHNOLOGIES OF CARE TO CHANGE
THE TRAJECTORY OF WHAT THAT
DIAGNOSIS MEANT FOR THAT PERSON.
AND FOR THAT REASON, INNOVATION
AND WHAT IT CAN BRING TO
PATIENTS. NEW POSSIBILITIES FOR
RESTORATION TO WHOLENESS NEW
OPPORTUNITIES TO SURVIVE A
DIAGNOSIS THAT A YEAR AGO OR TWO
YEARS AGO WOULD HAVE RESULTED IN
DEATH IS WHAT WE'RE TALKING
ABOUT THIS COMMITTEE TODAY THE
IDEA OF MAKING THIS REAL FOR THE
PEOPLE OF CALIFORNIA IS THE
POWER THAT YOU'RE EXPLORING IN
IN THIS VENUE. INTO THE
CONVERSATIONS THAT YOU HOLD
AFTERWARDS. NOW I TRAINED IN
WHAT I WOULD CHARACTERIZE AS THE
EARLY MESOZOIC ERA OF HEALTHCARE
, AND THE IDEA WAS WHEN YOU WERE
LOOKING AT TREATING CANCER. WE
WERE LOOKING FOR THE BIGGER
HAMMER. MANY OF THE CLINICAL
TRIALS AT THE TIME WHEN I WAS A
RESIDENT OR EVEN A FELLOW, WE'RE
FOCUSED ON HOW WE COULD GIVE
MORE INTENSIVE CHEMOTHERAPY,
MORE INTENSIVE RADIATION THERAPY
OR EXPLORE MORE RADICAL WAYS OF
TREATING PEOPLE WITH SURGERY.
AND THAT DID VERY LITTLE. IN
FACT, ONE OF THE MOST HUMILITY
INDUCING STUDIES THAT WAS
PUBLISHED IN ABOUT THE MID
NINETIES WAS A STUDY THAT SHOWED
ALL THESE NEW FORMS OF TREATMENT
FOR LYMPHOMA THAT GOT STRONGER
AND STRONGER AND, FRANKLY GOT
TOXIC AS HELL FOR PATIENTS WERE
NO BETTER THAN LESS INTENSIVE
FORMS OF CHEMOTHERAPY. AND IN
THAT MOMENT OF HUMILITY WE
LEARNED IF WE WANTED TO DO
BETTER BY PATIENTS AND FAMILIES
, WE WOULD HAVE TO THINK AND
RADICALLY DIFFERENT WAYS. HENCE
THIS BIRTH OF GENE AND CELL
THERAPIES. AND THE KNOWLEDGE
BASE, WHICH HAS GIVEN RISE TO A
SLEW OF TECHNOLOGIES, WHICH
WOULD HAVE BEEN HERETOFORE
UNIMAGINABLE BACK WHEN WE WERE
SIMPLY THINKING ABOUT BIGGER
HAMMERS AND MORE INTENSIVE
THERAPEUTICS. NOW THE HUMAN
GENOME PROJECT THAT THE DOCTOR
HERE MENTIONED JUST A LITTLE
WHILE AGO UNEARTHED AND ENORMOUS
FOUNTAIN OF KNOWLEDGE THERE
23,000 PLUS GENES THAT FRAME OUT
THE INSTRUCTION SET FOR HOW TO
MAKE A HUMAN BEING, AND IN THAT
THERE'S MORE THAN THREE
GIGABYTES OF DATA. IN THOSE
THREE GIGABYTES OF DATA IS THE
KNOWLEDGE OF HOW TO CURE CANCER
. HOW TO TRAIN AND CHANGE THE
TRAJECTORY OF INBORN INHERITED
LETHAL GENETIC DISEASES. AND THE
WAY TO DO THAT IS BY GETTING
SMARTER. ONE OF THE FIRST TYPES
OF CELLULAR THERAPY WAS BONE AND
MARROW TRANSPLANTATION. THAT'S
WHERE I'VE DONE MUCH OF MY WORK.
AND THROUGH THAT WE COULD TAKE
THE IMMUNE SYSTEM OF A DONOR AND
DIRECTED AGAINST THE LEUKEMIA OR
LYMPHOMA THAT HAVE PROVEN
REFRACTORY TO CHEMOTHERAPY FOR A
PATIENT. AND BY TRANSPLANTING
THAT PERSON WITH THAT IMMUNE
SYSTEM. YOU COULD TAKE A CURATE
OF LESS THAN 20% AT ONE YEAR AND
TRANSLATED INTO CURATES OF 60,
PLUS PERCENT 15 YEARS THAT IS
THE FIRST FORM OF CELLULAR
THERAPY. AND THIS YEAR AROUND
THE WORLD MORE THAN 50,000 OF
THESE PROCEDURES WILL WILL BE
PERFORMED ABOUT HALF OF THEM IN
THE UNITED STATES. THAT JUST
GIVES YOU A SAMPLE OF HOW GENE
AND CELL THERAPIES AND THE
PORTFOLIO OF GENE MODIFIED CELL
THERAPIES CAN CHANGE PATIENT
LIFE AND LIFE EXPECTANCY. I LOOK
AT PATIENTS WITH RELAPSED AND
REFRACTORY LYMPHOMAS, WHERE MANY
OF THEM HAVE VERY FEW GOOD
THERAPEUTIC CHOICES THAT CAN
PRODUCE A CURE OR RESTORE THEM
TO WHOLENESS AND HEALTH. AND
WHEN YOU LOOK AT OUR ABILITY TO
MODIFY AN IMMUNE SYSTEM CELL
TAKEN FROM THAT PATIENT WITH NEW
GENETIC INFORMATION AND TARGET
THAT SELL AT THAT PERSON'S
CANCER, YOU'VE COME UP WITH
SOMETHING TRANSFORMATIVE BEYOND
THE POWER OF CHEMOTHERAPY OR
RADIATION THERAPY OR THE MOST
RADICAL SURGERY IMAGINABLE.
YOU'VE CREATED A LIVING,
BREATHING THERAPEUTIC, THEN CAN
GO THROUGH THAT PERSON'S BODY.
AND IN 50% OF PATIENTS RENDER
THEM DISEASE FREE FROM A
REFRACTORY LYMPHOMA. MORE THAN
TWO YEARS AFTER THAT TREATMENT.
AS OF NOW, THE FDA HAS APPROVED
27 DIFFERENT CELL AND GENE
THERAPEUTICS. SIX CAR T CELLS,
WHICH ARE THESE REDIRECTED CARTY
CELLS THAT CAN TREAT PATIENTS
WITH LYMPHOMA, MULTIPLE MYELOMA
AND OTHER FORMS OF CANCER IN
WAYS THAT ARE FAR MORE EFFECTIVE
THAN IMAGINABLE. BUT THIS IS
JUST THE BEGINNING. AND THIS IS
WHY THIS HEARING IS SO
IMPORTANT. BECAUSE THE FUTURE OF
ONCOLOGY IS PREDICATED UPON
CONTINUED LEVELS OF INNOVATION
LIKE THESE, AND MAKING SURE THAT
THESE LEVELS OF INNOVATION ARE
BROUGHT FORTH TO ALL OF THOSE IN
NEED. I HAVE TO SAY THE DAUNTING
PROSPECT HERE IS THAT THIS YEAR
BASED UPON SEARED DATA, U. S
GOVERNMENT DATA AND DATA FROM
THE CALIFORNIA CANCER REGISTRY.
WE ESTIMATE THAT 192,000 PEOPLE
IN CALIFORNIA WILL BE DIAGNOSED
WITH CANCER. AND ABOUT A THIRD
OF THEM WILL SUCCUMB TO THAT
ILLNESS FOR LACK OF OPTIONS AND
CARE. SO IF WE'RE MOVING
FORWARD, WE THINK ABOUT WHAT
DOES THE FUTURE LOOK LIKE? FOR
THOSE PEOPLE? IT ISN'T IN MORE
RADICAL SURGERY AND CHEMOTHERAPY
. IT'S IN OUR ABILITY TO BRING
NEW INNOVATIONS TO THEM AND
CELLULAR THERAPEUTICS AS WELL AS
GENE MODIFIED THERAPEUTICS ARE
WHAT THAT FUTURE WILL LOOK LIKE
WHEN WE THINK FIVE YEARS FROM
NOW OR 10 YEARS FROM NOW, WHAT
CANCER CARE LOOKS LIKE IT'S
REALLY WITHIN THIS ABILITY TO
HARNESS THE POWER OF THE GENE.
MODIFY IT REIMPLANTED INTO A
CELL AND EITHER REDIRECT THAT
CELL TO BE A HUNTER KILLER OF
CANCERS OR DELIVER IT TO THE
BODY IN THE FORM OF A VIRUS
CREATED IN THE LAB, NOT A
DANGEROUS VIRUS, BUT ONE INSTEAD
THAT ELEVATES THAT PERSON'S
HEALTH WITH THE RESTORATION OF
WHOLENESS. IT MAY MEAN FOR THAT
PERSON THAT THE CANCER CELLS
WILL BASICALLY COME APART WHEN
THEY ENCOUNTERED THAT VIRUS OR
FOR SOMEONE WHO HAS AN INHERITED
DISORDER, ONE THAT MIGHT
COMPROMISE THEIR IMMUNE SYSTEM
OR ONE THAT MIGHT CULMINATE IN A
PREMATURE, PAINFUL DEATH. THAT
THAT MODIFIED. TYPE OF DRUG FOR
LACK OF A GOOD WORD CAN
COMPLETELY CHANGE THE ARC
TRAJECTORY OF THAT PERSON'S LIFE
. AND AS WE LOOK FORWARD AT CITY
OF HOPE, WE ARE ENGAGED IN
RESEARCH FOR IN IN IN ADJUSTING
AND CHANGING THE IMMUNE SYSTEM.
TO ATTACK BRAIN TUMORS THAT AS
OF THIS TIME, ARE INCURABLE TO
TREAT PEOPLE WITH SERIALLY
REFRACTORY BREAST CANCER WHO
MIGHT HAVE METASTASES TO THE
BRAIN OR WITH REFRACTORY
PROSTATE CANCER THAT HAS FAILED
EXISTING TREATMENTS. OR ACUTE
LEUKEMIAS, FOR WHICH THERE IS NO
SATISFYING PATH FORWARD. SO THE
NEED FOR INNOVATION IS REALLY.
SOMETHING THAT IS REALIZED IN
DEEPLY HUMAN TERMS. SO WHAT WE
CAN DO HERE IN TERMS OF HELPING
THIS INDUSTRY TO GROW. AND ALSO
HELPING PATIENTS TO GET
EQUITABLE ACCESS TO THESE
TREATMENTS, IS THE LIFEBLOOD OF
MANY, MANY MORE LIVES TO BE
SAVED. BETWEEN THE TIME I
STARTED MY RESIDENCY IN 19
92,022. CANCER MORTALITY RATES
DECREASED BY 31% SO FOR ALL
THOSE PATIENTS WHO SUCCUMBED TO
MYELOMA IN THE EARLY DAYS OF MY
RESIDENCY, I NOW HAVE A CLINIC
WITH PEOPLE WHO HAVE LIVED WITH
MYELOMA. HIGH QUALITY LIVES FOR
14, OR MORE YEARS. I HAVE
PATIENTS IN MY CLINIC. WHO IN
THE EARLY DAYS OF THE AIDS
EPIDEMIC WOULD HAVE DIED WITHIN
30 DAYS OF ADVANCED HIV RELATED
LYMPHOMAS, WHO HAVE BEEN CARING
FOR MORE THAN 15 YEARS AND ARE
CURED OF THOSE LYMPHOMAS AS A
RESULT OF ADVANCES IN CELLULAR
THERAPEUTICS, AS WELL AS GENE
MODIFIED THERAPEUTICS AND OTHER
IMPORTANT TECHNOLOGICAL
BREAKTHROUGHS AREN'T JUST
HYPOTHETICAL. BUT THEY ARE
BECOMING AVAILABLE TREATMENT FOR
PEOPLE WITH BETA SOUTH BETA
FALLACY MIA WHO SUFFER VERY
DIFFICULT LIVES GETTING
REPETITIVE, LEE TRANSFUSED OR
THOSE WITH SICKLE CELL ANEMIA
WHO BEAR DISPROPORTIONATE BURDEN
OF SUFFERING, NEGLECT AND
SOMETIMES CONTEMPT IN EMERGENCY
ROOMS THROUGHOUT THE STATE.
THERE IS A PATH TOWARDS A CURE
FOR SICKLE CELL DISEASE ACHIEVED
THROUGH GENE MODIFIED
THERAPEUTICS AND THROUGH GENE
THERAPIES. SO AS WE THINK ABOUT
WHAT THE FUTURE LOOKS LIKE IT
WILL BE REALIZED THROUGH THE
DEPTH OF INNOVATION THAT WE'VE
JUST TOUCHED UPON HERE IN A VERY
CURSORY FASHION, AND THROUGH THE
POLICIES THAT YOU NAVIGATE IN
THIS BODY, YOU WILL BE
CHALLENGED TO FIND OPPORTUNITIES
TO GROW OUT THIS INDUSTRY AND
ALSO CHALLENGED TO FIND WAYS
THROUGH WHICH WE CAN ENSURE
EQUITABLE ACCESS TO THESE
THERAPEUTICS. THE LIFE DIVIDEND
OF GETTING THIS RIGHT IS
ENORMOUS WHEN WE LOOK AT THAT
DECADENT OF 31% DURING MY WORK,
NOT AS A RESULT OF ANYTHING I'VE
DONE, BUT THAT OF GREAT
SCIENTISTS DOING GREAT WORK
THROUGHOUT THIS COUNTRY. 2 TO 3.
MILLION PEOPLE ARE ALIVE TODAY
WHO WOULD NOT BE IF IT WEREN'T
FOR THESE THERAPEUTICS? THOSE
ARE REAL LIVES, REAL FAMILIES
THAT HAVE BEEN TOUCHED FOR THE
BETTER IN PROFOUND WAYS AS THE
FUTURE MOVES FORWARD. THAT BODY
OF SURVIVORS AND THOSE WHOSE
LIVES HAVE BEEN BENEFITED BY
THESE TYPES OF THERAPEUTICS THAT
HAVE YET TO BE ENVISIONED AND
YET TO BE REALIZED IN CENTERS IN
CALIFORNIA AND BEYOND. THOSE ARE
LIVES THAT YOUR POLICIES WILL
AFFECT AND MOVING FORWARD. SO AS
YOU DO, SO, I WANT TO THANK YOU
FOR YOUR DILIGENCE AND LISTENING
TO THESE ISSUES BUT ALSO
CHALLENGE YOU. AS THESE THINGS
MOVE FORWARD. WE WANT TO MAKE
SURE THAT THE POOREST AND MOST
VULNERABLE MEMBERS OF OUR
SOCIETY CAN BENEFIT FROM THIS
AND THAT WE DON'T UNDERVALUE
THESE THINGS BY LOOKING AT THEM
AS EXPENSIVE IN THE CONTEXT OF
HUMAN LIFE. THE ABILITY TO
CHANGE YOUR LIFE, AVERT
SUFFERING AND ACHIEVE THAT
RESTORATION TO WHOLENESS FOR
BOTH THE PERSON AND THE FAMILY
HAS EXTRAORDINARY IMPACT UPON
OUR SOCIETY AGAIN. THANK YOU FOR
THE OPPORTUNITY TO SPEAK WITH
YOU TODAY, AND I'D BE HAPPY TO
ANSWER ANY QUESTIONS. THANK YOU
VERY MUCH FOR THAT TESTIMONY AND
AGREE, YOU KNOW. GOSH, THINKING
ABOUT THAT THE NUMBER OF NOT
JUST LIVES FAMILIES SITES, BUT
ALSO PEOPLE WHO CONTINUE
CONTRIBUTE TO CALIFORNIA AND
THAT OPPORTUNITY THAT OTHERWISE
WOULD HAVE BEEN LOST FOR THEIR
THEIR THEIR CONTRIBUTIONS. UH
DEFINITELY, IT'S VERY STRONG
WITH US. I'M GOING TO OPEN IT TO
COMMITTEE IF WE HAVE ANY
QUESTIONS FOR THE PANEL, UM IF
NOT, I MIGHT HAVE JUST A COUPLE
OF MY OWN. UM YOU MENTIONED MISS
MCCALL. THANK YOU FOR GIVING AN
OVERVIEW OF THE WORK THAT THE
INITIATIVE DOES, UM HOW ARE WE
TRACKING OUTCOMES? MAYBE
SPECIFICALLY WITH CALIFORNIANS
THAT HELPED YOU MENTIONED A
RANGE OF DIFFERENT, UM,
TREATMENTS AND A DIFFERENT AREAS
THAT THE GRANT MAKING HAS BEEN
ABLE TO AFFORD. BUT BEYOND THAT
, WHAT IS THE RETURN ON SOME OF
THAT INVESTMENT IN THE FORM OF
NUMBERS OF LIVES TOUCHED OR OR
OR HOW? HOW IS THAT $50 MILLION
OVER THE LAST SIX YEARS? BEEN
HELPFUL. WE ANTICIPATED YOUR
QUESTION FOR THE IMPACT
ASSESSMENT, WHICH WE STARTED
ABOUT A YEAR AGO. THAT'S ONGOING
, BUT AFTER EVERY IT'S ACTUALLY
IN OUR STATUTE OR REQUIRED TO
CONDUCT AN EVALUATION, UM
FOLLOWING AND WE TOOK IT UPON
OURSELVES TO IMPLEMENT BEST
PRACTICES, SO WE ENGAGE OUT OF
STATE EVALUATORS THEMSELVES.
EXPERTS IN EACH OF THESE FIELDS
THAT WE ARE SUPPORTING. AND THAT
EVALUATION REPORT IS AVAILABLE
ON OUR WEBSITE FREELY.
DOWNLOADABLE, UM AND, UH. WE
ATTEMPTED TO WRITE IT FOR A
GENERAL AUDIENCE THAT WE'VE
LEARNED SOMETHING IN THE FOUR
YEARS SINCE WE PUBLISHED THAT,
BUT SO YOU HAVE, UM. YES
CERTAINLY LIVES IMPACTED. FOR
EXAMPLE, DOCTOR CHARLES CHIU AT
UCSF, RIGHT. I WAS SAVING LIVES
BASED ON THE ICU TRAJECTORY
RIGHT BY UNDERSTANDING AFTER
INSTEAD OF CONDUCTING 10,000
DIFFERENT INDIVIDUAL TESTS TO
UNDERSTAND WHICH 10,000 OF THOSE
PASSES, PATHOGENS OR CAUSING
THOSE CONDITIONS, CAUSING THOSE
SYMPTOMS. UM, HE WAS ABLE TO GET
THE RESULTS WITHIN 24 HOURS,
WHICH IS PURE MAGIC. DINOS
CEDARS SINAI? DR BRENNAN SPIEGEL
. AH HE HAS, UM, CONFIRMED THAT
YOU CAN SAMPLE BLOOD OUTSIDE OF
THE WALLS OF A CLINIC. SO THAT
HAS JUST FURTHER AMPLIFIED THE
OPPORTUNITY, PARTICULARLY DURING
THE PANDEMIC. FOR FOLKS TO
MAINTAIN HEALTH CARE THROUGH
REMOTE SAMPLING. UM I COULD GO
ON AND YOU MENTIONED THE
INVESTMENT THAT YOU HAD, AND I
AND I'M TRYING TO REMEMBER, BUT
I DIDN'T WRITE DOWN BY MEMORY.
UM THE DIRECT SEAT INVESTMENTS
THAT WE MADE $50 MILLION. BUT
THEN I SAW YOU SAID THAT HAS
BEEN ABLE TO HELP TO QUALIFY OR
CAPTURE ANOTHER 35 MILLION OR SO
THAT'S RIGHT. OUTSIDE FUNDING.
UM REGRET FOR ME THAT FEELS A
LITTLE BIT LOW. IS THERE MORE
THAT WE COULD BE DOING TO UM,
FIND LEVERAGED OPPORTUNITIES, I
GUESS IF, UH THAT'S GREAT THAT
WE HAD THAT ADDITIONAL SUPPORT
THAT CAME IN. IT'S ALSO GREAT
THROUGH YOUR PRESENTATION THAT
WE ARE THE FIRST STATE THAT IS
DOING THAT KIND OF PARTNERSHIP
WITH FEDERAL COUNTERPARTS AS
WELL. BUT THERE'S BEEN, I THINK
A LOT MORE CAPACITY FROM FEDERAL
OR MAYBE EVEN PHILANTHROPIC
INVESTMENTS AS WELL. ARE WE
MISSING ANYTHING IN OUR ABILITY
TO LEVERAGE OPPORTUNITIES? LET
ME CLARIFY THAT THOSE ARE REAL
DOLLARS RATHER THAN ECONOMIC
IMPACT. RIGHT, IMPROVING THE
QUALITY OF LIFE AND ALL THAT SO
COMPARED TO THE NIH THAT'S
ALMOST DOUBLE WITHIN HCS FROM
THEIR RESEARCH INVESTMENTS. NO
KIDDING, SO WE CAN BE SO MUCH
MORE NIMBLE WITH OUR STATE
DOLLARS ACTUALLY WORK. YOU KNOW
, WE SUPERVISE THOSE RESEARCH
PROJECTS, RIGHT? WE ARE. WE WANT
TO BE GOOD STEWARDS OF TAXPAYER
DOLLARS IN THAT RESEARCH
INVESTMENT, RECOGNIZING JUST
WHAT A PRIVILEGE IT IS TO HAVE
STATE DOLLARS INVESTED IN
RESEARCH TO FILL THOSE GAPS AT
THE NIH. HAS YET TO RECOGNIZE
OUR PRIORITIES OR THE STYLE OF
RESEARCH, UM, SIMILAR TO THE R P
H RIGHT. JUST POLAR OPPOSITE OF
WHAT NIH DOES. AND IT'S
INCREMENTAL, UM, STEPS FORWARD.
THANK YOU. AND I WOULD NOTE THAT
WE HAVE FROM MY PARENTS POINT
BELIEVE THE FEDERAL GOVERNMENT
HAS A LOT MORE CAPACITY TO MAYBE
PRIORITIZE SOME OF THE SUPPORT
AS WELL. BUT IT'S GREAT THAT
WE'RE DOING WHAT WE CAN AND
CERTAINLY LEADING THE WAY FROM
STATE INVESTMENTS. AND I HAD
THOUGHT ABOUT THIS QUESTION FOR
THE PREVIOUS PANEL, BUT I THINK
IT APPLIES WELL HERE GIVEN THAT
WE'RE TALKING ABOUT LOOKING
FORWARD, RIGHT PRECISION
MEDICINE, MAYBE A FOCUS FOCUS ON
YOU KNOW AS IT APPLIES TO
CANCER. HOW DO YOU FEEL THE
STATUS POSITION? WE DIDN'T ASK
THE QUESTION BEFORE ABOUT A LOOK
BACK WHERE WE ARE TODAY, THE
ANSWER WAS POSITIVE.
CALIFORNIA'S MADE INVESTMENTS
WERE IN A VERY STRONG POSITION,
AS WE'RE THINKING FORWARD ABOUT
THE TECHNOLOGY IS THE
INNOVATIONS OVER THE NEXT 20
YEARS. UM WHAT DO WE NEED TO DO,
AND MAYBE STAY COMPETITIVE THERE
TO KEEP CALIFORNIA COMPETITIVE
IN THAT WORKFORCE PIPELINE? UH
OR IN SUPPORTING THE PUBLIC
PRIVATE PARTNERSHIPS THAT ARE
GONNA MAKE THOSE, UM,
REALIZATIONS ACTUALLY HAPPENED
HERE IN CALIFORNIA. YOU CAN
START OUT. I THINK THAT THE
STATE IS WELL POSITIONED WITHIN
EIGHT TRIPLE C'S THROUGHOUT THE
STATE THAT HAVE WORKED VERY
EFFECTIVELY IN PUBLIC PRIVATE
PARTNERSHIPS TO COLLABORATE IN
TERMS OF GROWING IDEAS THAT
OTHERWISE WOULD HAVE BEEN MORE
DIFFICULT TO DO WITHOUT THAT
KIND OF RELATIONSHIP. IN
ADDITION, THE CALIFORNIA
INSTITUTE FOR REGENERATIVE
MEDICINE, ITS DEVELOPMENT OF THE
ALPHA CLINICS REALLY PROVIDED A
GOOD MODEL OF HOW YOU COULD TAKE
PUBLIC DOLLARS AND PARTNER WITH
A NUMBER OF ORGANIZATIONS
THROUGHOUT THE STATE TO ENSURE
HIGH PATIENT IMPACT IN THE
DEVELOPMENT OF REALLY INNOVATIVE
CLINICAL TRIALS, BRINGING NOT
ONLY SELLING GENE THERAPIES BUT
OTHER KINDS OF THERAPEUTICS. TO
PATIENTS WHO OTHERWISE WOULD NOT
HAVE ACCESS TO THEM. SO I THINK
YOU'RE BUILDING UPON A VERY
STRONG CORE OF CAPACITIES WITHIN
THE STATE, AND I WOULD HAVE TO
DEFER FOR OTHER ISSUES OF HOW TO
GROW THAT FURTHER. YES, UM WE'RE
NOT JUST TRYING TO ADD VOLUME TO
THE RESEARCH INNOVATION
PIPELINE. WE'RE ACTUALLY TRYING
TO INNOVATE ON THE INNOVATION
PIPELINE. TO TRUNCATE TO
TRUNCATE IT RIGHT. THIS FIELD OF
RESEARCH POLICY, RIGHT? HOW DO
YOU OPTIMIZE THE PUBLIC BENEFITS
OF THE STATE FUNDED RESEARCH
PROJECTS? INVESTMENTS. BY
BRINGING FOLKS TO THE TABLE FROM
THAT ENTIRE PIPELINE, SO NOT
JUST RESEARCHERS WORKING WITH
OTHER RESEARCHERS AND IN VENTURE
CAPITAL FIRMS, ONLY WORKING WITH
OTHER VENTURE CAPITAL FIRMS OR,
YOU KNOW AT THAT STAGE OF
DEPLOYING THOSE RESEARCH
OUTCOMES, UM OR THOSE HEALTHCARE
SYSTEMS AND THE PAIRS, RIGHT? WE
WANT TO MAKE SURE NOT TO MENTION
THE END USER RIGHT? THE PATIENTS
AND THE HEALTH CARE PROVIDERS.
TO BRING THEM ALONG FROM DAY ONE
TO ENSURE THAT THE PATHWAY THAT
THAT RESEARCH IS TAKING WILL
ACTUALLY BE USEFUL. THIS IS
SOMETHING THAT DR FRANCIS
COLLINS AND I, H DIRECTOR ACROSS
THREE PRESIDENTS PRESIDENCIES,
LAMENTED HE REGRETTED NOT
INVESTING MORE AND
IMPLEMENTATION SCIENCE. HAVING
SEEN THROUGH THE PANDEMIC THAT
FOLKS. YOU KNOW THAT WE HAD THIS
MARVELOUS VACCINE DEVELOPED IN
RECORD TIME, AND YET SOME PEOPLE
SAID NO THANKS, RIGHT. WE HADN'T
BROUGHT THEM ALONG. WE HADN'T
MADE SURE THAT THAT CULTURAL
COMPETENCY WAS THERE AND THE
IMPLEMENTATION SCIENCE FIRMED UP
, SO ENGAGING THE ENTIRE
PIPELINE OF STAKEHOLDERS FROM
RESEARCH. HEALTH CARE PROVIDERS
, HEALTHCARE PAYERS AND THE END
USER NOT TO MENTION THE VENTURE
CAPITAL FIRMS WHICH WE'RE DOING
THROUGH THE R PH PROJECT. THANK
YOU. MISS DAVIES. THANK YOU. AND
THANK YOU BOTH FOR YOUR
EXPERTISE. I APPRECIATE IT. I
MEAN, OBVIOUSLY, I THINK TO GET
GREAT POLICIES WHEN WE NEED TO
BE ABLE TO WORK TOGETHER. HOW IS
THE ADMINISTRATION OF WORKING
WITH THE INDUSTRY TO BE ABLE TO
ADVANCE THESE HEALTH NEEDS THAT
WE HAVE RIGHT NOW. WHAT IS THE
RELATIONSHIP LIKE? OH, YOU JUST
TEED ME UP SO WELL TO BRAG ABOUT
THIS NEW DEPRESSION RESEARCH
PROGRAM. BASED ON THE EXPERTISE
THE GUIDANCE OF OUR ADVISORY
COUNCIL, WHICH IS COMPOSED OF
INDUSTRY MEMBERS, VENTURE
CAPITAL FIRMS, ACADEMICS,
COMMUNITY MEMBERS AND HEALTHCARE
PROVIDERS, NOT TO MENTION THE
SURGEON GENERAL AND ASSISTANT
SECRETARY OF HELPING HELPING
HUMAN SERVICES HERE IN
CALIFORNIA. UM WE WILL REQUIRE
INDUSTRY PARTNERSHIP AGAIN
TRUNCATE THAT INNOVATION
PIPELINE AND BRING TOGETHER ALL
OF THE DISPARATE GROUPS THAT
NORMALLY DON'T WORK TOGETHER.
WE'RE GOING TO MAKE THEM WORK
TOGETHER. WE HAVE TO REALIZE
THAT WE HAVE TO SHOW THEM HOW TO
WORK TOGETHER, RIGHT? THIS IS
NOT DOESN'T COME NATURALLY,
ESPECIALLY TO RESEARCHERS HAVING
SPENT 16 YEARS IN NEUROSCIENCE
RESEARCH LABS MYSELF, SO, YOU
KNOW, FINDING A WAY FORWARD TO
MAKE SURE THAT WE MEET THE NEEDS
OF EVERY STEP OF THAT RESEARCH
PIPELINE, SO RIGHT NOW, THEY'RE
REALLY NOT WORKING TOGETHER. BUT
THIS IS SOMETHING THAT YOU'RE
GOING TO REQUIRE IN THE FUTURE
SO THAT THEY CAN GET TOGETHER.
I'LL BE IN THE SAME PAGE. AND
OBVIOUSLY, YOU KNOW, WE LEARNED
SO MUCH FROM EVERYONE AND I
THINK THAT'S AGAIN HOW WE MAKE
THE BEST POLICY AND BEST
DECISIONS. SO IS THAT SOMETHING
THAT WE'RE LOOKING INTO? LIKE
THIS COMING YEAR OR THAT'S RIGHT
. WE ALREADY HAVE THE WHEELS IN
MOTION. IN FACT, WE MET WITH THE
EXECUTIVE DIRECTOR OF THE MENTAL
HEALTH COMMISSION HERE IN
CALIFORNIA, AND WE'LL CONDUCT
THREE LISTENING SESSIONS ACROSS
THE STATE TO BROUGHT AN
AWARENESS PROGRAM UPDATED. I
THINK THAT'S FANTASTIC IN HONOR
. APPRECIATE IT. THANK YOU. MR I
WANT TO THANK YOU BOTH FOR YOUR
TESTIMONY HERE TODAY, WHILE HIGH
LEVEL VERY INFORMATIVE AND I
THINK REALLY BE SETTING FOR THE
CONTINUED WORKING COMMITTEE
WANTS TO DO IN PARTNERSHIP WITH
THE ADMINISTRATION LOOK FORWARD
TO SEEING YOU OUT IN THE
COMMUNITY SOON. UM AND WITH THAT
WE'VE REACHED THE END OF OUR
AGENDA. WE DO HAVE PUBLIC
COMMENT OPPORTUNITIES AS WELL.
UM IN THE INTEREST OF TIME, IF
ANYBODY IN THE ROOM WOULD LIKE
TO GIVE TESTIMONY TO THE SELECT
COMMITTEE, WE WELCOME THAT. SEE
A LOT OF SHY PARTICIPANTS, BUT
ALSO MANY, THERE ARE PROBABLY
ABSORBING THE INFORMATION AS
WELL. THAT WILL GO AHEAD AND
CLOSE OUR PUBLIC COMMENT PERIOD
AGAIN. THANK YOU ALL FOR
ATTENDING THIS FIRST SELECT
COMMITTEE HEARING, WE WILL BE
MEETING AGAIN SOON, LIKELY
OUTSIDE THE CAPITAL COMMUNITY
AND ONE OF OUR CLUSTER AREAS IN
THE STATE AT A DATE TO BE
ANNOUNCED AT THIS TIME, WE ARE
ADJOURNED.