Thursday, June 23, 2011 / Vol. 126, No. 124sddt.com/health11

Supplement to:

Who’s Who in Health& Life Sciences

Fragrances, food flavors are new biotech nicheBByy PPAADDMMAA NNAAGGAAPPPPAANN

Special to The Daily Transcript

The outdoor scent in your laundrydetergent. Air fresheners that bringan English garden into your home.Sweet-tasting children’s medicine.These elusive fragrances and flavorsfound in everyday household itemsare captured not from nature, but inthe labs of biotech companies thatdevelop and isolate a singular taste orsmell.

San Diego is home to two biotechcompanies that focus on this lucra-tive niche market: SSeennoommyyxx, whichdevelops flavor enhancers and bitterblockers, while AAllllyylliixx has createdscents that can repel insects and actas anti-fungal agents, aside from fra-grances.

Both companies have used drugdiscovery methods to develop foodgrade flavors and unique fragrances,in a fraction of the time and cost thatit would take to develop drugs andget U.S. Food and DrugAdministration approval.

In 2010, sales of sucrose — orsugar — was estimated at $100 bil-lion worldwide; sales of monosodiumglutamate — or MSG, a flavorenhancer — was $5 billion; coolingflavors like mint, used in every thingfrom lozenges to toothpaste, was esti-mated to be a $1.2 billion market;bitter blockers that reduce the bittertaste of medicines was around $15billion, and sucralose, the sweetenerused in brands like Splenda, hadsales of $330 million.

Given the huge demand for suchflavors and the fragrances used inhousehold products, manufacturersacross the world are looking for prod-ucts that can replace or reduce thequantity of flavoring and fragranceagents, lower costs, be environmen-tally friendly and safe to consume.

It’s this niche that the two firmsserve, but they approach it in verydifferent, innovative ways.

While the traditional approachfocuses on finding a known ingredi-ent — such as chili peppers in SouthAmerica — and developing flavors,

Senomyx (Nasdaq: SNMX) focuseson taste receptors to find new flavoringredients.

Our tongues have taste buds andeach taste bud is a bundle of cells.Each cell is responsible for a particu-lar taste. On the tip of the cells areproteins that are taste receptors.They send signals to our brain tellingus we’re eating something sweet orsalty.

The five taste categories are sweet,salty, sour, bitter and “umami,” or

Close-up: Drew Terry

ResMed director develops iPhone appto diagnose common sleep disorder

BByy EERRIICCAA BBOOUURRIISSSpecial to The Daily Transcript

Drew Terry, senior director of prod-uct marketing for respiratory care atRReessMMeedd, did not start off in the med-ical devices industry, but is glad he hasended up there because it allows himto engage with what drives him —innovation.

His professional backgroundincludes stints at HHeewwlleetttt PPaacckkaarrdd(NYSE: HPQ) as a design engineer,working with software and networksystems companies. Studying at MITprepared Terry to drive innovationfrom both design and business per-spectives. Joining ResMed five yearsago was a chance for this Salt LakeCity, Utah native to “blend an interestin physiology and health with aninterest in design and marketing cut-ting-edge products.”

Fundamentally, he and his team atResMed (NYSE: RMD) are focusedon “new ways of making treatmentbetter for patients.” According toTerry, the speed of innovation withinthe medical devices industry is rapid-ly increasing, beginning to remindhim of the fast pace that has charac-terized how the information technolo-gy sector has evolved. New devices,new features, changing ways to com-municate with and engage patients,and even changing health care legisla-tion are all coming down the pipeline.

Navigating this rapidly changingenvironment requires a leader who isexcited and invigorated by change,and Terry fits the bill.

ResMed’s recent development of asleep apnea application for the iPhoneis one terrific example of a productthat leverages the widespread use ofwireless technology to help individu-als be proactive in taking care of theirown health.

By downloading this free applica-tion, iPhone users concerned aboutsleep quality can conduct an initialassessment of the likelihood that theyhave, or will develop, a sleep disorder.The application allows users to recordtheir sleep sounds, compare thosesounds to recordings of known sleepapnea snores, complete a clinically-validated questionnaire that helpsidentify sleep disorders and even get

referrals to registered sleep labs in thearea.

According to Terry, the applicationwas developed because “a lot of peoplehave concerns about sleep quality andbreathing, but don’t really knowwhere to start.”

From a business perspective, thesleep apnea application enablesResMed to introduce the company’sbrand and position itself as a sleepapnea resource “from the very begin-ning of the patient journey.” From amore personal perspective, Terrynotes that the application might evenhelp facilitate a conversation about asticking point in many marriages —snoring.

Looking ahead, Terry notes that oneof the most critical forces shapingmedical device development in theyears ahead will be “patients that aremore involved, better educated andmore attuned to health care costs.”Widespread availability of health careinformation on the Internet andchanges in both federal health carelegislation and the health care deliv-ery system are motivating consumersto become more proactive in assum-ing responsibility for their health.

For companies developing medicaldevices, this means continuing toexplore new ways to engage patientsas partners, and recognizing that thedebate about health care costs will

San Diego to get several newhospitals, medical facilities

Most major health care systems haveprojects under way

BByy CCAARRLLOOSS RRIICCOOThe Daily Transcript

The San Diego health care land-scape is going through some majorchanges as most of the majorproviders are building new facilities.

More than $2.3 billion in newhospitals, specialty care centers andmedical offices are under construc-tion for the University of California,San Diego, Sharp Healthcare,Scripps Health, Palomar PomeradoHealth and Kaiser Permanente,which will be going on for at leastthe next six years.

The largest medical facility cur-rently being built is PalomarPomerado Health’s PalomarMedical Center West. This $960million hospital will have 288patient beds (with a possible addi-tion of 360 beds), 12 operatingrooms, a trauma center, laboratoriesand pharmacy center.

The 11-story, 740,000-square-footPalomar Medical Center West isapproximately 70 percent completeand construction is expected to becompleted by spring 2012, with themedical facilities opening for opera-tion three months later.

At the University of California,San Diego, the Jacobs MedicalCenter is under way. When complet-ed it will be an in-patient cancerhospital, a hospital for women andinfants as well as for advanced sur-gery with 245 beds, 108 medical andsurgical beds, 36 ICU beds, 32 post-partum inpatient rooms, 12 newoperating rooms and eight labor anddelivery rooms.

The $663.8 million center willtotal more than 548,000 square feetand is expected to be completed byJanuary 2017.

Sharp Healthcare has three majorconstruction projects under way.

The first is a three-story, 66,365-square-foot medical office buildingin downtown San Diego, which willhouse primary and specialty care,laboratory, physical therapy, radiol-ogy, pharmacy and urgent care serv-ices.

The project is estimated to cost

approximately $38 million, fundedin part by $10 million in philan-thropic support and is replacing theexisting 85-year-old Sharp Rees-Stealy building across the street.Construction of the new facility isexpected to be completed by sum-mer 2012.

Construction is also taking placedown in South Bay for the CancerCenter at Sharp Chula Vista MedicalCenter and Medical Office Plaza.

This $15.5 million project will be athree-story, 45,000-square-footstructure that will feature a patientlobby and waiting areas, examrooms, a resource center, doctoroffices, conference rooms, nurse sta-tions, CT scan rooms and radiationtherapy chambers. It is slated forcompletion by April 2012.

Also at the Sharp Chula VistaMedical Center, renovations aretaking place at the existing emer-gency department. The $12 millionproject involves doubling the size ofthe department from 8,000 to14,500 square feet and increasingthe number of operational bedsfrom 20 to 48. This expansion proj-ect is expected to be completed byearly 2012.

Scripps Health is in the middle ofits 25-year master plan, which wasunveiled last year, to create a com-prehensive regional medical campusin La Jolla.

Scripps will replace the existinghospital with three new hospitaltowers to meet state earthquakesafety mandates and build newresearch and graduate medical edu-cation facilities, an outpatienttreatment center and medicaloffices.

The first project in this 43-acremaster plan will be a $456 millioncardiovascular center.

The Scripps CardiovascularInstitute, which will serve as the firsthospital replacement tower, will be aseven-story, 383,000-square-footfacility with 108 inpatient beds inprivate rooms, 60 intensive carebeds, six operating rooms and sixcardiac catheterization labs.

Groundbreaking for this projecthas just taken place and is slated toopen in 2015.

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See Niche on 10

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likely influence the medical deviceindustry in the years ahead.

Terry is up for the challenge and heconsiders himself lucky to be able towork on this challenge from anunbeatable San Diego setting.Embracing the “work hard, play hard”ethic, Terry enjoys filling his week-ends with cycling up Highway 101 andspending time at the soccer field withhis two children. And as the outgoingpresident of the MIT alumni group inSan Diego, he relishes the chance tostay engaged with a dynamic group ofpeers who have landed in sunnySouthern California. “Every time Iland at the airport, I smile becauseSan Diego is such a terrific place tocall home.”

Bouris is a San Diego-based free-lance writer.

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Photo courtesy of ResMedRReessMMeedd’’ss nneeww iiPPhhoonnee aapppplliiccaattiioonnccaann hheellpp aasssseessss iiff uusseerrss ssuuffffeerr ffrroommsslleeeepp ddiissoorrddeerrss,, ssuucchh aass aappnneeaa..

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2 THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

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TheQualityChoice

California Western professor offers insightinto future of health insurance reform

The intersection betweenhealth law and public policyis often filled with politicallandmines and complex lan-guage that can be viewed ascontradictory at best.

California Western profes-sor Susan Channick under-stands the nuances of healthcare-related language andthe implications of insurance-based legislation.

Professor Channick isactively involved in thenational health care reformdiscussion. She has served onthe American Bar Associationsubcommittees on Medicineand Law and Health CareDecisions and is a member ofthe American Society of Law,Medicine, and Ethics.

In addition to a juris doctorfrom California Western, sheholds a bachelor’s degree inpsychology from CornellUniversity, and a master’s inpublic health from HarvardUniversity.

For the past 15 years,Channick has focused on thelegal issues surroundinghealth care, and during thattime she has advocated formajor changes to our coun-try’s current system.

Professor Channick, whoco-directs the UC San Diegoand California WesternMaster’s in Health Law pro-gram, finds herself in demandto explain the 2010 PatientProtection and AffordableCare Act, often referred to as“Obamacare.” She believesthe act’s intent needs clarifica-tion among the general pub-lic.

“The argument about theact is really about healthinsurance reform, not healthcare reform, with the actfocusing on providing univer-sal, affordable, and adequatehealth insurance,” she said.

The act’s focus of providingaffordable health insurance isrooted in an expansion of thepool of those insured.

“The problem with volun-tary health insurance is thathealth insurance pools tend tobe oversaturated with olderand sicker people who wantto make sure they are insuredfor illness and injury,” saidChannick. “The young andhealthy view themselves asnot needing health care, orthat they cannot afford it.

“Only a small percentageof the population actuallyneeds health care so the risksare highly skewed and thecosts are artificially high. Ahigher percentage of healthypeople in the pool wouldlower the risk of bad healthfor everybody and thereforelower the costs.”

The inclusion of mostAmericans in a health carepool could therefore, in theo-ry, reduce the per-personcosts associated with healthcare.

Channick explained that theprimary objection cited bythose opposed to healthreform is that the act forcespeople to purchase insuranceif they don’t need or want it.But, the act is not being chal-lenged on an individual liber-

ty basis.The states challenging the

act in federal court cite theirperceptions of Congress’improper use of theCommerce Clause in the U.S.Constitution, which regulatesinterstate and intrastate activ-ity. Objecting members ofCongress are attempting torepeal the act or “fiscallystarve” elements of the act,like premium subsidies for lowincome Americans.

Despite the national conver-sation about possible repealof the act, Channick believesthe states’ challenges to thePatient Protection andAffordable Care Act willeventually be decided by theU.S. Supreme Court.

“Based on the Court’s deci-sion and Congress’ actions,there is potential for the coun-try to return to a voluntaryhealth insurance market. Thismeans the younger andhealthier among us will con-tinue to opt out of insurancepools and those insured willinclude sicker people, thuscausing insurance rates tocontinue to rise. Individualsand small businesses, whoare currently uninsured butwho want insurance, will beleft to the financial vagariesof the market.

“While mandatory healthinsurance is predicted tolower the number of unin-sured from 50 to 22 million, acontinuation of or return tovoluntary health insurancecould cause some 40 millionAmericans to continue to beuninsured,” said Channick.

California Western’sInstitute of Health Law Studiesfocuses on improving thefuture of health care.

Together with UC SanDiego, the law school offers ajoint Master’s in Health Lawand sponsors lectures andsymposia focused on emerg-ing health care issues.

Submitted by California Western School of Law

3THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

California Western School of Law congratulates:

Dean Steven R. Smith on the publication of his new book Malpractice in Psychology: a Practical Resource for Clinicians

At the intersection of theory and practice, Smith’s scholarship

offers real-world solutions for health care professionals

www.CaliforniaWestern.edu

Dynalectric CompanyHealth care — its rising

costs and economic impact— is one of today’s hottesttopics. It’s an arena in whichDynalectric is a leadingplayer. The company hasnewly constructed, renovatedand expanded various proj-ects throughout the region forhealth care clients, rangingfrom established hospitals tomedical office buildings andstate-of-the-art outpatientfacilities.

Dynalectric’s extensiveindustry experience andbroad array of proven full-lifecycle solutions make it asolid choice to help health-care providers address theirvarious complex challenges.Backed by substantial finan-cial resources and an out-standing safety record, thecompany’s services extendfrom low-voltage and high-voltage design and construc-tion through maintenanceand service. ISO 9001-certi-fied for quality, the companyalso offers expert fabrication.

Dynalectric’s range ofcapabilities was in ample evi-dence at the UCSD ThorntonHospital CardiovascularCenter, where the companydemonstrated it can deliverprojects fast without sacrific-ing quality. This recently com-pleted project is a 127,000square foot, four-story standalone hospital.

The facility consists of threeoperating rooms, one hybridoperating room, threecatheterization laboratories,two floors of patient beds, adigital radiology center, CTroom, emergency room,triage and administrativeoffices. The scope of work forDynalectric included: totalelectrical, high-voltage sys-tems, tele-data communica-tions, power generation,lighting control and publicaddress. This projectrequired OSHPD approvaland full BIM coordination ofcomplex electrical systems.

The entire project was com-pleted on time and on budg-et.

Technological expertise isanother Dynalectric strength,which was put to work at theUCSD Moores CancerCenter. This state-of-the-artcancer center is the first in theworld to provide all patientcare and research within onefacility. To meet its needs,Dynalectric delivered a com-plete electrical solution,including high-voltage, firealarm/life safety and securi-ty/CCTV systems. In addi-tion, the company installedtele-data communications, aswell as audio and video net-works. To ensure smart sys-tem management, the com-pany put in complete build-ing automation and controltechnologies.

For many healthcareorganizations a phaseddelivery method, which inte-grates with existing and/oroperating facilities, is often ahigh priority. At GrossmontHospital, Dynalectric partici-pated in the construction of afive-story hospital completewith emergency and criticalcare facilities. Due to the hos-pital’s implementation plan,the lower floors and infra-structure for the upper floorswere completed first, allow-ing patients to start beingseen. The second phase wascompleted while the hospitalwas already functioning.

This ability to provideexpert end-to-end solutionstailored to clients’ uniquebusiness and operatingrequirements has madeDynalectric a leader indesigning, building, power-ing and servicing today’scomplex and demandinghealthcare facilities.

Founded in 1970,Dynalectric, an EMCORCompany, located in SanDiego is a leading full-serviceelectrical contractor servingSouthern California.

Submitted by Dynalectric

Close-up: V.S. Ramachandran

Famed UCSD neuroscientistputs his mind to problems big and small

BByy JJEENNNNIIFFEERR MMCCEENNTTEEEESpecial to The Daily Transcript

San Diego neuroscientistVilayanur S. Ramachandranhas had no shortage of acco-lades for his work. He’searned praises from worldleaders and Nobel laureates,has been profiled in TheNew Yorker and Newsweek,and has been called the“Marco Polo of neuro-science” by famed evolution-ary biologist RichardDawkins.

So when Time magazinerecently named him amongthe 100 most influentialpeople in the world — along-side President BarackObama, Oprah Winfrey andSting — Ramachandranconcedes the recognitionwasn’t all that unexpected.

“I was not surprised. Itsounds arrogant, but it’snot,” Ramachandran said ina recent interview. Hisadvances in brain researchhave been well documented.Still, he was gratified to seewho penned the Time pro-file: Thomas Insel, directorof the National Institute ofMental Health.

“When I saw that, I wasextremely pleased,” he said.

Ramachandran said hederives greater satisfactionfrom his basic research ofthe mind, and in thatresearch being used to helppatients with a variety ofconditions, including synes-thesia, autism and phan-tom-limb pain.

Ramachandran is directorof University of San Diego,California’s Center for Brainand Cognition, a UCSD pro-fessor of psychology andneuroscience, and anadjunct professor of biologyat the Salk Institute.

These days he’s workingon a scientific presentation

about his latest work withphantom limbs, specifically,the sensations that a person“feels” even after a limb hasbeen amputated. “When theamputated limb is removed,the feedback is removed,” hesaid. “So when that personwatches another personbeing massaged, it relievespain in the phantom limb.”

It was Ramachandran’sidea to use a mirror toreflect an amputee’s intactlimb, a kind of mental trick-ery that has therapeutic ben-efits.

“I like tinkering and solv-ing little problems thatsometimes have largerimplications,” he said. “A lotof experiments are unreal-ized. Darwin used to refer tothese as ‘fools’ experiments.’”

Ramachandran said histhinking is often influencedby what he learned underthe tutelage of Francis Crick,the scientist best known forhis part in the discovery ofthe DNA molecule structure.Crick believed that scientificexperimentation is only asimportant as its broader sig-nificance, according to

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Close-up: Samuel H. Wood

Acclaimed stem cell researcher sees a bright future for scienceBByy RRYYAANN PPAATTRRUUNNOO

Special to The Daily Transcript

World-renowned reproduc-tive endocrinologist andboard certified obstetricianand gynecologist Dr. SamuelH. Wood is once again namedas a listee in Marquis’ 2011Who’s Who in the World,Who’s Who in America, aswell as Who’s Who in Scienceand Engineering for his workin embryonic stem cellresearch and innovations within vitro fertilization.

Wood is the CEO ofSStteemmaaggeenn, a stem cellresearch and developmentcompany, and the founderand medical director at theReproductive Science Center,both based in La Jolla. He hasa Master’s degree in psycholo-gy, a Ph.D. in biochemistryand molecular biophysics, andan M.B.A from San DiegoState University.

With more than 15 years ofexperience in female and malefertility treatments and spe-cializing in in vitro fertiliza-tion (IVF), Wood is consid-ered one of the top reproduc-tive endocrinologists in thecountry.

“In 2010, 93 percent of ouregg donation cycles success-fully resulted in a pregnancy.The per cycle pregnancy ratefor a typical 35-year-oldwoman is approximately 50percent compared to a spon-taneous monthly pregnancyrate of approximately 15 per-cent for fertile women of thatage,” said Wood.

IVF was first used in 1978.Since then much of the tech-nology has changed but theprocess remains clinically thesame.

Two recent advances in the

area of IVF involve the avail-ability of single-embryo trans-fer (SET), which can yieldexcellent pregnancy rateswhile virtually eliminating thechance of multiple pregnancy,and the availability of labora-tory procedures which test thehealth of embryos prior to theinitiation of a pregnancy.

“Together, these advancesgive couples much greatercontrol with less anxiety asthey work together with fertil-ity specialists to grow theirfamily,” said Wood.

Medical science has madeleaps in past decades regard-ing stem cell treatment,thanks to new advancementsin medical technologies, ther-apeutic procedures, pharma-ceutical developments andembryonic research.

In 2008, Marquis first rec-ognized Wood for creating thefirst recorded human embry-onic clones using his own skincells. The embryos weredestroyed shortly after incep-tion due to current federalcloning regulations.

In an article published inThe Washington Post onJanuary 18, 2008, Woodemphasized that it was not hisintention to clone a person,stating “it’s unethical and it’sillegal, and we hope no oneelse does it either.”

His controversial researchin therapeutic cloning attract-ed a lot of attention from bothnational and internationalmedia, and religious groups.

However, his documentedwork in the field of humanembryonic stem cell research(hESC) was a significant cata-lyst that launched muchdebate in Washington.

In a public address at the

White House on March 9,2009, President Obamasigned an executive order to“lift the ban of federal fundingfor promising stem cellresearch,” which was previ-ously vetoed by PresidentBush after being passed inCongress.

“Although I have a greatdeal of respect for PresidentBush, I believe his vetoes ofthese two pieces of legisla-tion, which were passed on abipartisan basis, will beviewed in the future as tragicerrors that unnecessarily pro-long the suffering of patientswith devastating degenera-tive diseases,” said Wood.Adding “because of thesevetoes, meaningful progressin the area of embryonic stemcell research was largely non-existent for several years(except in states that provid-ed funding for this type ofresearch).”

The United States is still thelargest funded country ofstem cell research, due in partto state legislation (mainlyCalifornia’s Prop 71 and NewJersey’s S1909/A2840), uni-versities and private investors.However, countries such asthe United Kingdom, Sweden,Singapore and China aremaking great strides in stemcell research because of theirless stringent laws and secularpolicies.

Religion plays a large role inthe ethical battle over stemcell research. Many religiousorganizations in the UnitedStates take an anti-abortionstance condemning embryoresearch as immoral.

“The recent U.S. Court ofAppeals ruling approving fed-eral funding for research

SSaammuueell WWoooodd

using new embryonic stemcell lines is a great victory forthose that believe that person-al religious views should notbe used as a basis to block sci-entific research that holds thepromise of mitigating the suf-fering of millions of Americansuffering from otherwiseincurable diseases,” saidWood.

Embryonic stem cellresearch is being used toregenerate severed spinal cordinjuries, spur insulin produc-tion and treat Alzheimer’s,Parkinson’s, cancer and heartdiseases that affect millions ofAmericans.

“Universally accepted ethi-cal principles should guide allscientific research, said Wood.“Idiosyncratic personal reli-gious and ethical opinionshave throughout historyserved only to delay scientificprogress and in the processharm those that are most inneed of assistance.”

Patruno is a San Diego-based freelance writer.

SSoouurrccee CCooddee:: 2200111100662233ccrrff

Study shows Medicaid kids are denied medical careBByy LLIINNDDSSEEYY TTAANNNNEERR

The Associated Press

CHICAGO — Children on publicinsurance are being denied treatment bydoctors at much higher rates than thosewith private coverage, according to anundercover study that had researcherspose as parents of sick kids seeking anappointment with a specialist.

Snubbed even by specialists whoseoffices supposedly accept public insur-ance patients, these kids also had to waitmuch longer to see a doctor. LowMedicaid reimbursements are the likelyreason, the study authors said.

The study was done in Cook County,Ill., the nation’s second-most populouscounty which includes Chicago, but theresearchers and others say the resultslikely reflect practices around the coun-try.

“People should be very concerned,” said

Dr. Karin Rhodes, the lead author and anemergency medicine specialist at theUniversity of Pennsylvania.

The study results suggest many of the40 million publicly insured U.S. childrenare not getting recommended timelytreatment for dangerous conditionsincluding asthma, diabetes and depres-sion, she said.

“I work in an emergency room ... whereyou see the long-term consequences ofpeople who did not get the care theyneeded,” Rhodes said.

The study appeared in the NewEngland Journal of Medicine two weeksago.

The study is “simple and elegant” andbolsters previous research while present-ing a more accurate real-world picture ofdisparities facing public aid patients, saidDr. Steve Wegner, former head of theAmerican Academy of Pediatrics’ child

health financing committee.To test whether type of insurance influ-

ences doctors’ willingness to scheduleappointments, the researchers posed asparents of fictitious sick children referredto specialists by primary-care doctors oremergency room physicians. Seven sce-narios were created, including a 9-month-old with a severe skin rash, a 7-year-old with diabetes, a 12-year-old witha suspected broken arm and a 13-year-oldwith symptoms of severe depression.

The researchers phoned 273 specialtyclinics twice, a month apart, seeking anappointment with doctors including der-matologists, allergists, psychiatrists andbone specialists. In one call, the childrenwere said to have private insurance; in theother, they were insured through Illinois’Medicaid program.

See Medicaid kids on 6

See Ramachandran on 8

4 THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

Roundtable discussion

Health care overhaul not ensuring cost savings, experts say

BByy EELLIIZZAABBEETTHH MMAALLLLOOYYThe Daily Transcript

After months of intensescrutiny over PresidentBarack Obama’s health carereform bill, you would thinkthere is nothing in its hun-dreds of pages left unclear.

According to local healthcare leaders, you’d be wrong.

At a recent Daily Transcriptroundtable, the leaders oflocal hospitals, insurancecompanies and other healthcare providers said that thereis still a lot of confusion overhow to implement the law,and just what it means fortheir patients and their costs.Most agreed that the changes— predominantly to insur-ance — won’t ensure cost sav-ings the way changes to directpatient care could, and theyare concerned about howmany people will go on pro-grams like Medicare.

One of the biggest ques-tions that remains is aroundAccountable CareOrganizations, or ACOs.These are a new type of pay-ment and delivery systemdesigned to tie healthprovider reimbursements toquality metrics. The hope isfor a reduction in the cost ofcare for an assigned popula-tion of patients.

A group of coordinatedhealth care providers form anACO, and starting in 2012,ACOs can contract withMedicare. Steven Escoboza,president and chief executiveofficer of the HospitalAssociation of San Diego &

Imperial Counties, said mostof the changes, includingACOs, will likely start on thecommercial side beforeMedicare can be involved,because there are still so manyunknowns.

“There are some (new regu-lations) that just don’t makesense,” said Larry Anderson,CEO of TTrrii--CCiittyy MMeeddiiccaallCCeenntteerr. “For instance, a physi-cian can only belong to a sin-gle ACO, at least that’s how Iread the legislation, but you’renot allowed to drive thepatient location, so thepatient can go anywhere. I’mnot sure how that’s going towork.”

Anderson said Tri-CityMedical Center plans to con-tract with the government totake Medicare, agreeing on apool of patients, but if thosepatients go elsewhere, Tri-City could end up paying forthem anyway.

The new legislation alsocalls for hospitals to track 65different possible outcomeindicators, for quality assur-ances, many of which hospi-tals aren’t yet equipped for.

“There’s more unresolvedissues than there are resolvedissues at this point,” Andersonsaid.

Not everyone is completelyopposed to the new regula-tions. John Jenrette, CEO ofSShhaarrpp CCoommmmuunniittyy MMeeddiiccaallGGrroouupp said that the ACOstructure will likely force cer-tain divisions within theirown system to work together,breaking the “silo” mentality

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and getting a clearer view ofthe patient.

Others, though, said theydon’t think hospitals have toworry about ACOs as they’recurrently configured, becausethey probably won’t surviveimplementation. TomGehring, chief executive offi-cer and executive director ofthe San Diego County MedicalSociety, said that he doesn’tthink the payment model asits configured can work.

Gehring said that theUnited States doesn’t so muchneed health care reform and

health care financing reform,and he doesn’t think the cur-rent reforms accomplish that.

“There is no way in heckthat we’re going to simultane-ously increase access, improvequality and reduce cost,” hesaid. “They are at the microlevel able to do that, but not atthe macro.”

Janine Sarti, general coun-sel at PPaalloommaarr PPoommeerraaddooHHeeaalltthh, agreed. She said theACOs don’t work for every-one, and some hospitals orother providers simply won’tbe able to set them up without

drastically raising costs. Shesaid she’d rather see ACOs asone option, not a “one-size-fits-all” solution.

However, Sarti said shehoped this might force someproviders to come up withother solutions.

“If this is the push from thegovernment to the health careproviders to ensure that wecontinue to refine and honeour focus on quality, cost andaccess, I’m in,” she said. “Butnot exactly as it’s proposed bythe feds.”

Christi Braun, a member ofthe law firm MMiinnttzz,, LLeevviinn,,CCoohhnn,, FFeerrrriiss,, GGlloovvsskkyy aannddPPooppeeoo,, PP..CC.. based inWashington, D.C., said thatfor the politicians craftingthese laws, telling patientswhat to do when it comes totheir health is generally a non-starter, but that might bewhat needs to be done inorder to really save costs.

“If you can’t change thepatient’s patterns of receivingcare, then there’s one majorarea of cost control that youcan’t affect,” Braun said.

Jenrette said he didn’t thinkthe government or health careproviders necessarily had tocontrol where patients go tokeep costs down, but he wouldlike to see more focus onthings like preventative care,and end of life care. He’d liketo see patients more engagedand active in their own care.

Several roundtable atten-dees agreed with that. Theysaid that as more and morecompanies are offering pro-grams to help employees gethealthy, like offering healthyfood in the cafeteria, gymmemberships or exerciseincentives, health insuranceproviders must acknowledge

that and lower their rates.This would be a major incen-tive.

Anderson suggestedemployers should be at thetable during any health carereform discussion, since theyare such an important part ofthe payment plan for mostpeople.

Sarti suggested that thecountry’s health care system isnot broken, “just complex.”She wasn’t sure the new lawstook everything into account– from the shortage of pri-mary care physicians, to thelack of sufficient repaymenton programs like California’slow income program Medi-Cal, to chronic diseases thatcould be prevented bychanges in lifestyle.

Gehring agreed with this,but wondered if the UnitedStates was really ready for the“revolutionary” change thatwould need to occur. He saidlikely, the best result wouldcome from a solution thatnobody was totally happy with.

“The cost is multi-factorial,and the cost is reflective of ourown behavior,” he said.“Patients, we see the TV ad forthe disease of the month andsay ‘Hey, I’ll take whateverthat pill is, and by the waydoctor, could I have that,never mind that its quadruplethe cost.’ Doctors misbehave,hospitals try to keep theirbeds full, it’s everybody.”

“I would argue that we’re alittle bit like the band on thestern of the Titanic, decidingwhether we’re going to playBrahms or Vivaldi,” he added.“If we’re truly going to repairthe system, we will need revo-lutionary change.”

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Providers still unclear on how toimplement new laws

5THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

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Roundtable ParticipantsLarry Anderson, CEO

Tri-City Medical Center

Kimberly Bond, Presiden,Mental Health Systems Inc.

Christi Braun, Member, Antitrust andFederal Regulation Section

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (sponsor)

Steven Escoboza, President & CEOHospital Association of San Diego & Imperial Counties

Tom Gehring, CEO & Executive DirectorSan Diego County Medical Society

John Jenrette, CEOSharp Community Medical Group

Brendan Kremer, Administrative DirectorUC San Diego Medical Center

Nick Macchione, DirectorSan Diego Health & Human Services Agency

Daria Niewenhous, Member, Health Law SectionMintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (sponsor)

Janine Sarti, General CounselPalomar Pomerado Health

Steve Scott, Vice President & General ManagerAnthem Blue Cross

Ted Steuer, Executive DirectorScripps Mercy Physicians Partners

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6 THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

Company

URLMarket Cap as of

June 20, 2011Ticker Exchange

1 Life Technologies Corp.

www.lifetechnologies.com$9,294,035,000 LIFE NASDAQ GS

2 Illumina Inc.

www.illumina.com$8,914,757,000 ILMN NASDAQ GS

3 Carefusion Corp.

www.carefusion.com$5,990,355,000 CFN New York

4 Resmed Inc.

www.resmed.com$4,783,179,000 RMD New York

5 Gen-Probe Inc.

www.gen-probe.com$3,261,492,000 GPRO NASDAQ GS

6 Amylin Pharmaceuticals Inc.

www.amylin.com$1,665,505,000 AMLN NASDAQ GS

7 Volcano Corp.

www.volcanocorp.com$1,563,747,000 VOLC NASDAQ GS

8 Nuvasive Inc.

www.nuvasive.com$1,335,417,000 NUVA NASDAQ GS

9 Dexcom Inc.

www.dexcom.com$930,291,000 DXCM NASDAQ GM

10 Isis Pharmaceuticals Inc.

www.isispharm.com$858,502,000 ISIS NASDAQ GS

11 Sequenom Inc.

www.sequenom.com$729,554,900 SQNM NASDAQ GM

12 Halozyme Therapeutics Inc.

www.halozyme.com$677,485,300 HALO NASDAQ GM

13 Ardea Biosciences Inc.

www.ardeabio.com$660,813,800 RDEA NASDAQ GS

14 Optimer Pharmaceuticals Inc.

www.optimerpharma.com$578,909,100 OPTR NASDAQ GM

15 Cadence Pharmaceuticals Inc.

www.cadencepharm.com$577,703,800 CADX NASDAQ GM

16 Quidel Corp.

www.quidel.com$497,483,600 QDEL NASDAQ GS

17 Neurocrine Biosciences Inc.

www.neurocrine.com$405,172,700 NBIX NASDAQ GS

18 Accelrys Inc.

www.accelrys.com$381,018,700 ACCL NASDAQ GS

19 Alphatec Holdings Inc.

www.alphatecspine.com$303,919,900 ATEC NASDAQ GS

20 Vical Inc.

www.vical.com$291,159,300 VICL NASDAQ GM

21 Cytori Therapeutics Inc.

www.cytoritx.com$252,381,800 CYTX NASDAQ GM

22 Ligand Pharmaceuticals

www.pharmacopeia.com$209,934,300 LGND NASDAQ GM

23 Arena Pharmaceuticals Inc.

www.arenapharm.com$198,416,200 ARNA NASDAQ GS

24 Senomyx Inc.

www.senomyx.com$197,857,400 SNMX NASDAQ GM

25 Santarus Inc.

www.santarus.com$195,910,800 SNTS NASDAQ GS

Company

URLMarket Cap as of

June 20, 2011Ticker Exchange

26 Trius Therapeutics

www.triusrx.com$178,925,000 TSRX NASDAQ GM

27 Lifevantage Corp.

www.lifevantage.com$99,758,640 LFVN OTC BB

28 Apricus Biosciences

www.apricusbio.com$99,467,980 APRI NASDAQ CM

29 Somaxon Pharmaceuticals Inc.

www.somaxon.com$94,960,530 SOMX NASDAQ CM

30 Acadia Pharmaceuticals Inc.

www.acadia-pharm.com$84,859,020 ACAD NASDAQ GM

31 Inovio Pharmaceuticals Inc.

www.inovio.com$77,461,270 INO NYSE Amex

32 Orexigen Therapeutics Inc.

www.orexigen.com$75,004,750 OREX NASDAQ GM

33 Sorrento Therapeutics Inc.

www.sorrentotherapeutics.com$74,909,130 SRNE OTC US

34 Adventrx Pharmaceuticals Inc.

www.adventrx.com$70,398,790 ANX NYSE Amex

35 LPATH Inc.

www.lpath.com$62,277,550 LPTN.OB OTC BB

36 Anadys Pharmaceuticals Inc.

www.anadyspharma.com$59,426,870 ANDS NASDAQ GM

37 Digirad Corp.

www.digirad.com$52,061,300 DRAD NASDAQ GM

38 Pure Bioscience

www.purebio.com$35,774,290 PURE.OB NASDAQ CM

39 Medicinova Inc.

www.medicinova.com$34,687,850 MNOV US NASDAQ GM

40 Entest BioMedical Inc.

www.entb.net$30,017,850 ENTB OTC US

41 TearLab Corp.

www.tearlab.com$24,500,450 TEAR NASDAQ CM

42 Cardium Therapeutics Inc.

www.cardiumthx.com$23,101,230 CXM NYSE Amex

43 Adamis Pharmaceuticals Corp.

www.adamispharmaceuticals.com$18,757,620 ADMP OTC BB

44 SpectraScience Inc.

www.spectrascience.com$9,723,698 SCIE OTC US

45 Aethlon Medical Inc.

www.aethlonmedical.com$7,657,537 AEMD.OB OTC BB

46 Harbor Biosciences Inc.

www.harborbiosciences.com$6,383,851 HRBR OTC BB

47 Imagenetix Inc.

www.imagenetix.net$3,425,273 IAGX.OB OTC BB

48 Transdel Pharmaceuticals Inc.

www.transdelpharma.com$2,230,489 TDLP US OTC US

49 Biomatrix Scientific Group

www.bmsn.us$938,460 BMSN OTC US

50 U.S. Microbics Inc.

www.bugsatwork.net$906,939 BUGS OTC US

Data Source: Bloomberg. Listed by Market Cap as of June 20, 2011. This is a partial list; a more complete listing can be found at sourcebook.sddt.com. It is not the intent of this list to endorse its participants,nor to imply that a company’s size or numerical rank indicates its quality or service. We reserve the right to edit listings or to exclude a listing due to insufficient information. Last updated 6/2011.

Listed by Market Capitalization as of June 20, 2011

Top 50 Local Publicly Traded Biomed/Biotech Firms

Overall, specialists refused togrant appointments for 66 per-cent of the Medicaid children,versus only 11 percent of pri-vately insured youngsters.

Among 89 clinics thataccepted both insurance types,Medicaid children had to waitan average of 42 days for anappointment, versus 20 daysfor private coverage.

In about half the calls, clinicsasked about insurance beforetelling callers whether anappointment was available. Inother cases, callers volunteeredtheir insurance information —and were often told thatMedicaid was the reason theappointment request wasdenied, the researchers said.

Orthopedic (bone) doctorswere among specialists mostlikely to deny appointments forpublic kids; psychiatrists wereamong the least likely. Rhodessaid an analysis of the reasonsoffices gave has not been com-pleted.

In about 20 percent of thedenials, callers were told theycould seek treatment at thecounty public hospital or at anemergency room.

Rhodes said information isnot available on how many ofthe doctors involved acceptMedicaid patients, but thatmost specialists are affiliatedwith hospitals, which generallyrequire them to enroll inMedicaid.

All appointments made werecanceled at the end of the call.Many specialists told about thestudy afterward said they want-ed to see any kids “who need tosee me” but that they workedwithin health systems or hospi-tals that for financial reasonsdiscouraged them from treat-ing too many patients on publicaid, Rhodes said.

In Illinois, Medicaid paysdoctors about $100 for office

visits like those sought in thestudy, versus an average of$160 from private insurers, theresearchers said.

Other factors againstMedicaid patients include“delays in payment and hasslesof payment procedures,” theresearchers said.

Wegner, a Medicaid consult-ant and chairman ofCommunity Care of NorthCarolina, a managed caregroup that includes most pri-mary care doctors in his state,said accountable care organiza-tions to be set up starting nextyear would help address thedisparities. The groups werepart of President BarackObama’s health care law.

These networks of hospitals,doctors and other health careproviders would include organ-izations focused on the pedi-atric Medicaid population, hesaid. The idea is for providers towork together to streamlinecare, prevent medical errors,and focus on keeping patientshealthier and out of the emer-gency room.

In a study published lastmonth in Pediatrics, the sameresearchers used similar under-cover methods to examineaccess to emergency dental carefor children on Medicaid inCook County — and found sim-ilar disparities.

The Illinois Department ofHealthcare and Family Servicespaid for both studies as part ofa 2005 consent decree stem-ming from a class-action law-suit alleging Medicaid childrenin Cook County weren’t gettingequal access to primary care.

Department spokesmanMike Claffey said both studies“provide data that highlights anissue that has been and contin-ues to be an area of focus” forhis agency and Medicaid pro-grams in all states.

SSoouurrccee CCooddee:: 2200111100662233ccrrrr

Medicaid kidsContinued from Page 3

Weighing cancer risks, from cellphones to coffeeBByy MMAARRIILLYYNNNN MMAARRCCHHIIOONNEE

The Associated Press

You’re sitting in a freshlydrywalled house, drinkingcoffee from a plastic foam cupand talking on a cellphone.Which of these is most likelyto be a cancer risk?

It might be the sitting, espe-cially if you do that a lot.

Despite all the recent newsabout possible cancer risksfrom cellphones, coffee,styrene, and formaldehyde inbuilding materials, most of usprobably face little if any dan-ger from these things withordinary use, health expertssay. Inactivity and obesity maypose a greater cancer risk thanchemicals for some people.

“We are being bombarded”with messages about the dan-gers posed by common thingsin our lives, yet most expo-sures “are not at a level thatare going to cause cancer,”said Dr. Len Lichtenfeld, theAmerican Cancer Society’sdeputy chief medical officer.

Linda Birnbaum agrees.She is a toxicologist whoheads the government agencythat just declared styrene, aningredient in fiberglass boatsand Styrofoam, a likely cancerrisk.

“Let me put your mind atease right away aboutStyrofoam,” she said. Levels ofstyrene that leach from foodcontainers “are hundreds ifnot thousands of times lowerthan have occurred in theoccupational setting,” wherethe chemical in vapor formposes a possible risk to work-ers. “In finished products, cer-tainly styrene is not an issue,”and exposure to it from ridingin a boat “is infinitesimal,” shesaid.

Carcinogens are things thatcan cause cancer, but thatlabel doesn’t mean that they

will or that they pose a risk toanyone exposed to them inany amount at any time.

They have been in the newsbecause two groups that peri-odically convene scientists todecide whether something is acarcinogen issued newreports.

Last month, theInternational Agency forResearch on Cancer, part ofthe World HealthOrganization, said there is apossibility cellphones raisethe risk of brain tumors.

“The operative word is ‘pos-sibility,’” said Lichtenfeld, whoamong others has pointed outthe thin evidence for this andthe fact that cancer rates havenot risen since cellphonescame out.

Last week, the NationalToxicology Program, part ofthe National Institute ofEnvironmental HealthSciences — both of whichBirnbaum heads — issued itsreport.

It adds to the list of knowncarcinogens formaldehyde,which is in building materialsand some hair-straighteningproducts, though Birnbaumsaid on-the-job exposure isthe main concern. The listalso adds a plant substance insome “natural” arthritis reme-dies, aristolochic acid. Sixother things were dubbed“reasonably anticipated” to becarcinogens, includingstyrene and another herbalmedicine ingredient, riddelli-ine.

Since 1971, the internation-al cancer agency has evaluat-ed more than 900 substances.Just over 100 have beendeemed carcinogens, 59 arecalled probable carcinogens,and 266 others are possibleones.

In this last category of pos-

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sibles — besides the electro-magnetic energy from cell-phones — are coffee, engineexhaust and talc-based bodypowder. Talc in its naturalform may contain asbestos,though products sold forhome use since the 1970s have

been asbestos-free. Again,most risk is thought to involveoccupational or unusual expo-sure to natural talc.

The evidence on coffee hasgone back and forth for years,with no clear sign of dangerand some suggestions of ben-efit.

However, known carcino-gens include alcoholic bever-ages, estrogen treatments formenopause symptoms, birthcontrol pills, certain virusesand parasites, and even somedrugs used to treat cancer,such as cyclophosphamideand tamoxifen.

“Most people would proba-bly be shocked to see thenumber of things they inter-act with every day” on theselists, Lichtenfeld said.

Here’s the problem: Theagencies that pass judgmenton a carcinogen don’t regulateit or determine what levels orroutes of exposure are a con-cern and for whom.

“People immediatelyassume it’s going to cause can-cer at any exposure level, andthat’s simply not true,” said A.Wallace Hayes, editor of thescientific journal Food andChemical Toxicology, and anindustry consultant.

The rule is “RITE” — RiskIs equal to Toxicity timesExposure — and “they’ve leftout half of the equation” bynot saying how much expo-sure is a concern, Hayes said.

“The organizations that listthese substances as possiblycarcinogenic have to be con-servative. That means ifthere’s any reasonable evi-dence, way before it’s a surething, they have to say, ‘Let’sbe cautious.’”

“That’s their job — to raisethe flag,” said David Ropeik, aconsultant and author of“How Risky Is It Really? WhyOur Fears Don’t AlwaysMatch the Facts.”

It’s human nature to fearrisks we didn’t choose, such ashazardous chemicals, morethan those we did, such aslack of exercise, poor diets orsmoking, he said.

“A risk that is imposed on usscares us more than a risk wetake voluntarily,” especially ifit comes from companies wedon’t trust, Ropeik said.

Styrene is an example: Thegovernment says it is a com-ponent of tobacco smoke andthat is the biggest way mostpeople are exposed to it.Smoking, of course, is themost easily preventable can-cer risk.

To minimize risk, peoplecan take reasonable measuresto avoid exposure to possiblyharmful things, experts say.

“If you walk into a roomand you can smell formalde-

See Cancer risks on 7

7THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

University of San DiegoStudent Life Pavilion

Johnson and Johnson Pharmaceutical Research & Development

Francis Parker School Auditorium

Pechanga Resort and Casino Golf Clubhouse

San Diego ZooElephant Odyssey Exhibit

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It is a fact that the consistentcare of medical patientsrequires proper and timelymaintenance of vital electricalsystems and regulators. Theengineers and staff at NealElectric have been trained toefficiently perform necessarytasks in health care environ-ments without significantlydisrupting patients, staff ordaily operations.

Regulations and require-ments for medical facilitiesare constantly changing. Tokeep current, Neal Electricworks diligently to maintainproper certifications andqualifications to ensure thatevery job is up to code andpursuant to safety guidelines.

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Close-up: Diane Schneider

Renowned expert on bone healthsays osteoporosis is ‘silent killer’Her new book focuses

on prevention,treatment

BByy PPAADDMMAA NNAAGGAAPPPPAANNSpecial to The Daily Transcript

One out of three older menand one out of five older womenwith hip fractures end up dyingwithin just one year of theinjury. This is because the aver-age age when people have hipfractures is in their 80s, so sur-gery to repair a hip is either notadvisable or often leads to com-plications like pneumonia.

Statistics show that morewomen die of broken hips andbacks each year than frombreast cancer.

Why then, is bone health notgiven the same importance asheart disease or have the samelevel of awareness that cancerdoes? It’s because osteoporosisis a silent disease.

The only way to determine ifyou have it, barring outwardsigns, is with a bone densityscan.

Dr. Diane Schneider, a lead-ing national expert on osteo-porosis, co-founded the non-profit 4BoneHealth with theaim of dispelling ignoranceabout the disease and creatingawareness to educate the publicabout bone health.

“With aging, there’s bone lossand the underlying tissuebecomes thinner and weaker,leading to fragile bones. Youcan’t tell by looking at them.The majority of spinal fracturesare silent, there’s no pain, so youdon’t know it’s happening,” saidSchneider, who is a retired asso-ciate professor of clinical medi-cine at University of California,San Diego, where she held sev-eral positions.

She studied medicine at theUniversity of Louisville, trainedas an epidemiologist at theHarvard School of PublicHealth, and completed a resi-dency in internal medicine aswell as a fellowship in geriatricsat Emory University.

Originally from suburbanPhiladelphia, Penn., she hasmade San Diego her home forthe past 21 years. The fact thatgeriatrics and bone health areboth underserved areas is whatdrew her to the field, she said.

Schneider has written a book,“The Complete Book of BoneHealth,” which will be releasedthis month. It presents the lat-est information on boostingbone health, from prevention totreatment.

She explained that certaingroups are more prone to boneloss and fractures, based on

DDiiaannee SScchhnneeiiddeerr

genetics as well as lifestyle.Older Caucasians are at highestrisk, followed by Asians. Latinoshave intermediate risk whileAfrican-Americans have thelowest risk.

While women are moreprone to have fractures, 30 per-cent of fractures occur in men,so men are not immune, shesaid.

Schneider emphasized thatcalcium is important for bonehealth.

“If you’re not drinking milk,you’re also missing other nutri-ents, aside from calcium.Whenever possible, naturalsources are better than supple-ments, but you rarely get suffi-cient vitamin D from naturalsources,” she said.

Vitamin D deficiency isincreasingly common nowa-days.

Schneider pointed out thatthe sun is the major source ofvitamin D, but even in SouthernCalifornia the ultraviolet radia-tion may not be sufficient toproduce it, especially during thewinter months. The use of sun-screen also blocks UV rays, andhence vitamin D absorption.

There are also very few natu-ral foods with high levels of thevitamin. Fish is one of thosesources, but she said it’s mainlywild salmon and halibut.

Most of us believe that a glassor two of vitamin D fortifiedmilk will take care of our nutri-tional needs, but one glass hasonly 100 international units(IU) of the vitamin. The recom-mended daily dose for childrenand adults under 70 years of ageis 600 IU. For seniors above 70,the suggested intake is 800 IU.

The Endocrine Societyreleased a new report suggest-ing people need much higherquantities, which is why supple-ments become necessary.

“Good bone health requiressufficient vitamin D, calciumand exercise. For older adults,

fall prevention and support isvery important,” she said.

For women, menopause leadsto the loss of estrogen produc-tion, which can result in boneloss unless it’s prevented by theintake of prescription therapyestrogen, Schneider said.

Her new book focuses onshowing people how to opti-mize bone health through outtheir life, when to get bone den-sity scans, the risk factors forfractures and bone loss, alterna-tive and complementaryapproaches as well as prescrip-tion medicines.

Despite good lifestyle habits,many people still end up havingosteoporosis or osteopedia, sheexplained. For the former, doc-tors can prescribe FDAapproved medicines.

The latter, however, is not adisease but is diagnosed basedon bone density.

“What you should be con-cerned about is the risk factorfor fractures. This depends ongenetics, family history, yourage, habits such as smoking ordrinking more than two glassesof any alcohol a day,” she said.

She recommends that menand women above the age of 70get bone density scans done. It’salso a wise option for pre- andpost-menopausal women who

are at risk, and even men above50 with certain risk factors.

“Nearly half of post-menopausal women who are 50and older and a third of menover 50 will break a bone,” shewarned.

In her book, she talks aboutcontroversial hot topics, such asthe potential adverse effectsfrom prescription medicines.She referred to the media frenzylast year about osteoporosisdrugs that actually may causefractures.

“Atypical thigh bone fractureshave been observed in very fewpeople taking some types ofosteoporosis drugs. But the riskof an osteoporotic fracture ismuch, much greater than anatypical fracture. So the bottomline is that this risk should notprevent some one from startingosteoporosis treatment,” sheemphasized.

Schneider said that althoughosteoporosis is a silent disease,fractures are not inevitable.

“By increasing awareness andknowledge, you can decreaseyour risk, by making bonehealth a conscious part of yourevery day routine.”

Nagappan is a San Diego-based freelance writer.

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Local biotech’s 2010 was ‘mixedbag’ of positive, negative results

BByy TTHHOORR KKAAMMBBAANN BBIIBBEERRMMAANN

The Daily Transcript

While San Diego’s biotech-nology engine is home to 550companies, has some 40,000workers and has a $9.2 bil-lion impact on the localeconomy, a report said itmight not be getting the fuelit needs.

“In review, the San Diegolife sciences industry in 2010was a blend of positive andnegative that produced amixed bag of results,” JJoonneessLLaanngg LLaaSSaallllee (NYSE: JLL)wrote. “Venture capitalinvestment, the life-blood ofthe region’s life sciencesindustry, began 2010 comingoff of a strong fourth quarterof 2009, which saw $178 mil-lion invested into localindustry.

“This surge, however, didnot last long as the first quar-ter of 2010 posted an invest-ment amount of only $81million.”

The report added that thesecond quarter was the onlyone last year in which thebiotechs received more thanthe region’s historical quar-terly average of $127 million.

In the meantime, big com-panies such as LLiiffee TTeecchh--nnoollooggiieess (Nasdaq: LIFE),IIlllluummiinnaa and NNuuvvaassiivvee(Nasdaq: NUVA) experi-enced healthy growth andadded to their employmentbase last year.

Offsetting the positivenews was BBiiooggeenn IIddeecc’s(Nasdaq: BIIB) announce-ment in November that itwould be closing its entireSan Diego facility in theNobel Corporate Center inUTC and would be taking325 workers with it. Thegood news here is IIlllluummiinnaa(Nasdaq: ILMN) has back-filled the 470,000-square-foot space.

Among smaller companies,biotech start-up firms

accounted for 35 percent ofall technology start-ups lastyear here.

Although 184 local biotechcompanies were helped lastNovember with a total of $67million in federal grants toget them going, the venturecapital funds remain themothers’ milk of the indus-try.

This isn’t to say thereweren’t venture capitalinvestments. Several firmsreceived some sizableamounts during the fourthquarter of last year.

aaTTyyrr PPhhaarrmmaa received$23.05 million for earlystage trials on biologic drugsbased on Physiocrines.Physiocrines are naturalhuman proteins designed toprovide therapies for a widerange of blood, muscular andvascular disorders.

GGeennoommaattiiccaa, which createssustainable chemicals,received $21.25 million forlate stage trials.

AAiirreess PPhhaarrmmaacceeuuttiiccaall,which develops therapies forpulmonary conditions,received $20 million in fundsfor early stage trials.

CCeerreeggeennee garnered $11.5million for later stage trialsof drugs designed to treatParkinson’s and Alzheimer’sdiseases.

Each of the remainingrecipients received less than$7 million for their experi-mentation during the fourthquarter.

As some companies wereworking through trials, otherbiotechs were filing for aninitial public offering.

After relatively no activityin 2008 and 200, where thetwo years combined only wit-nessed four biotech firmsgoing public, 2010 recordedsomewhat of a revival with 14companies entering the pub-lic markets.

bbiibbeerrmmaann@@ssddddtt..ccoommSSoouurrccee CCooddee:: 2200111100662233ccrrhh

hyde, you probably want tovent the room before youspend a lot of time in it. That’sjust common sense,”Birnbaum said.

If you’re concerned aboutpesticides, you can peel fruitand vegetables or chooseorganics, though there is someevidence that organic prod-ucts may be less safe in termsof germs like E. coli and sal-monella.

People worried about cell-phones can hold them fartherfrom the head, text-messageinstead of talk, or use a head-

set or earpiece as Lichtenfelddoes. He was returning from amajor cancer conference inChicago last week when a fel-low traveler pointed atLichtenfeld’s Bluetooth ear-piece and said, “Do you knowthat thing can cause cancer?”

“I said, ‘Yes, ma’am, I’m veryfamiliar with the data and Ichoose to use Bluetooth,’” saidLichtenfeld, who didn’t tellher he was one of the biggestcancer experts she’d evermeet.

“You can’t live life in fear,”he said. “You have to live life.”

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Cancer risksContinued from Page 6

8 THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

Providing planning, architecture, and interior designnationally and internationally with a focus onSouthern California communities.

Architects | Delawie Wilkes Rodrigues Barker’s LifeScience Studio originated in 1994 with projects at The Scripps Research Institute in La Jolla, California. In the 17years since, the firm has established itself as a leader in life science and biotechnology design in the San Diego region. Services include Master Planning and DueDiligence Surveys, Programming, Architecture, InteriorDesign, and FF&E.

The firm’s commissions include chemistry andbiotechnology laboratories, animal research facilities,electron microscopy and nuclear magnetic resonancefacilities, clean rooms, environmental chambers, datacenters, manufacturing, warehouse and distributionfacilities, and headquarters and administrative space.

Clients include, among many others: • The Scripps Research Institute• Pfizer Global Research & Development• The National Oceanic and Atmospheric Administration • La Jolla Institute of Allergy & Immunology/Gemini

Sciences, Inc. • Alere (previously Biosite Incorporated) • Alexandria Real Estate Equities, Inc. • Arena Pharmaceuticals• BD Biosciences• Pharmexa-Epimmune Inc. (previously Epimmune)• Invitrogen by Life Technologies (previously Invitorgen)• Neurocrine Biosciences• Sidney Kimmel Cancer Center

50

Cushman & Wakefield Global Life Sciences Practice GroupSan Diego’s onlyreal estate team

dedicated solely tolife sciences industry

The Cushman & Wake-field Global LifeSciences Practice Groupis San Diego County’s mostexperienced real estate teamspecializing exclusively inmeeting the unique real estateneeds of the area’s life sci-ence, pharmaceutical andclean-tech companies.

We regularly negotiatemore than 65 percent of alllocal laboratory transactions– more than all of our compe-tition combined – making usSan Diego’s leading laborato-ry Tenant Rep Team for the lifesciences industry.

Beginning with Hybritechin 1981, the Cushman &Wakefield Global LifeSciences Practice Group hasbeen integral to the growth ofthe San Diego pharmaceuticalindustry, helping companiesincluding Biogen Idec,Amylin Pharmaceu-ticals, Eli Lilly, Gen-Probe, Idun Pharma-ceuticals, Kalypsys,Chimerix, CovX, AltheaTechnologies, NovaRx

Pharmaceuticals, andAmira Pharmaceuticalsfind facilities that support theirbusiness and growth strate-gies, location requirements,and laboratory needs.

We have also assistednumerous nonprofit researchcompanies with their realestate needs, including theSanford-Burnham MedicalResearch Institute and The LaJolla Institute for MolecularMedicine. We are particularlyproud to be a co-founder andactive member of BIOCOM,San Diego.

The Cushman & WakefieldGlobal Life Sciences PracticeGroup takes a leadership rolewith our clients, presentingevery possible real estatealternative in terms that clear-ly underscore the impact ofeach decision. The group’syears of brokerage experi-ence are augmented with theanalytical and process expert-ise of other Cushman &Wakefield specialty groups,so clients can make informeddecisions based on bottom-line economic and strategicimpact.

Conducting more life sci-ence transactions than all ofour competition combined,we have more influence andability to secure optimal terms

for our clients.With an unparalleled

knowledge of every squarefoot of laboratory space inthe county, and the knowl-edge of perspectives andmotivations of the major lablandlords, the Cushman &Wakefield Global LifeSciences Practice Group’sknowledge and influencecommands maximum lever-age and optimum transactionresults for its clients.

The Cushman & WakefieldGlobal Life Sciences PracticeGroup is the only San DiegoCounty real estate team dedi-cated solely to the life sciencesindustry. Since its formation in1981 as a specialized divi-sion of Burnham Real Estate,and under the direction ofBrent Jacobs, the C&W GLSPhas become the trusted andreliable resource for biotech-nology, pharmaceutical, bio-pharmaceutical, medicalresearch and cleantech com-panies.

For information or torequest a copy of the mostrecent Cushman & WakefieldLife Sciences quarterly mar-ket report, contact BrentJacobs, Greg Bisconti, TedJacobs, or Allison Gibson at858-452-6500, or visitsdlifesciences.com.

Submitted by Cushman & Wakefield

Ramachandran. Or, moreplainly, “So what?”

“I’m deeply interested inthe methodology, and thechi is to understand the cre-ative process,” Ramachan-dran said. “These aspects ofscience are not taught, espe-cially in graduate study.”

Ramachandran said heoften peppers his college lec-tures with the history of sci-ence, in the hope that it willinspire students to thinkmore imaginably about thescientific process.

“We’re not valuing humanintelligence when sciencehas become a 9-to-5 job,” hesaid. “When it becomes pro-fessionalized, it starts losingits soul.”

Some of the world’s great-est inventors and scientists“had this grand romanticnotion of science,” a conceptthat can get lost in large sci-entific conferences wherescientists are compelled tofollow the crowd. “It’s noteasy to be unaffected bythat, but I warn my stu-dents, that gets boring,”

Ramachandran said.There are plenty of big

questions out there, stillwaiting for exceptional sci-entists to put their minds to,Ramachandran said. Whydoes pain even exist? Howcan we better understandhuman nature, includingcompassion and happiness?

“The answers to thesequestions will increasehuman well-being,” he said.

McEntee is a San Diego-based freelance writer.

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RamachandranContinued from Page 3

New rules to cut confusionon sunscreen claims

BByy MMAATTTTHHEEWW PPEERRRROONNEEThe Associated Press

WASHINGTON — Help ison the way to consumers con-fused by the jumble of sun pro-tection numbers, symbols andother claims on sunscreens.Starting next summer, con-sumers can start looking forSPF 15 bottles with the label“broad spectrum” and feel confi-dent they’re being protectedfrom an increased risk of can-cer.

Currently, standards of pro-tection apply only to one part ofthe sun’s spectrum, ultraviolet Brays, which cause sunburn.Under new rules publishedrecently, they will also have toprotect against the more pene-trating ultraviolet A rays associ-ated with skin cancer.

The guidelines, which spentmore than 30 years in bureau-cratic limbo, are designed toenhance the effectiveness ofsunscreens and make them eas-ier to use.

The key takeaway for con-sumers: Look for a sun protec-tion factor, or SPF, of 15 andabove that also says “broadspectrum.” That’s the new buzz-word from the Food and DrugAdministration to describe aproduct that does an acceptablejob blocking both types of dam-aging rays.

Starting next summer, sun-screens with less than an SPF of15 or that aren’t “broad spec-trum” will have to carry a warn-ing label: “This product hasbeen shown only to help pre-vent sunburn, not skin canceror early skin aging.”

That will help people likePaul Woodburn, 55, who sayshe mainly buys brands he trustsand judges sunscreen by onefactor.

“The SPF number is whatcounts for me,” the Indianapolisresident said as he sat next to apublic pool. “Beyond the SPF, Idon’t think anybody reallywatches.” Woodburn said hewasn’t familiar with the differ-

ence between UVA and UVBrays or the broad spectrumlabel.

“These changes to sunscreenlabels are an important part ofhelping consumers have theinformation they need so theycan choose the right sun protec-tion for themselves and theirfamilies,” said Dr. JanetWoodcock, director of FDA’sdrug division.

The new regulations requiretesting for the more dangerousultraviolet A rays, which canpenetrate glass and pose thegreatest risk of skin cancer andpremature aging. Now, the FDAonly requires testing for ultravi-olet B rays that cause sunburn.That’s what the familiar SPFmeasure is based on.

“For the first time, the FDAhas clearly defined the testingrequired to make a broad-spec-trum protection claim in a sun-screen and indicate which typeof sunscreen can reduce skincancer risk,” said Dr. Ronald L.Moy, president of TheAmerican Academy ofDermatology Association.

Under the new rules:• The FDA will prohibit sun-

screen marketing claims like“waterproof” and “sweatproof,”which the agency said “are exag-gerations of performance.”

• The FDA also proposescapping the highest SPF valueat 50, unless companies canprovide results of further testingthat support a higher number.

• FDA says manufacturersmust phase out a four-star sys-tem currently used by somecompanies to rate UVA protec-tion.

In reviewing more than3,000 comments submitted tothe agency, the FDA decided thestar system was too confusing.Instead, protection againstUVA should be proportional toprotection against UVB, whichis already measured using SPF.

The SPF figure indicates theamount of sun exposure neededto cause sunburn on sunscreen-

protected skin compared withunprotected skin. For example,an SPF rating of 30 means itwould take the person 30 timeslonger to burn wearing sun-screen than with exposed skin.

The rules were decades in themaking.

FDA announced its intent todraft sunscreen rules in 1978and published them in 1999.The agency delayed finalizingits guidelines for years until itcould address issues concerningboth UVA and UVB protection.

Some consumer advocatescomplained that the agency’sfinal guidelines were less strictthan draft proposals circulatedover the years.

“About 20 percent of prod-ucts that meet the new FDAstandards could not be sold inEurope, where UVA standardsare strict,” said David Andrews,senior scientist with theEnvironmental WorkingGroup.

Many companies havealready adopted the some of thelabeling outlined by the govern-ment. For example, all Copper-tone products from MMeerrcckk &&CCoo..’s (NYSE: MRK) Schering-Plough unit and Neutrogenasunscreens from JJoohhnnssoonn &&JJoohhnnssoonn (NYSE: JNJ) alreadyboast “broad spectrum UVAand UVB protection.”

Most dermatologists recom-mend a broad spectrum, water-resistant sunscreen of SPF 30or higher every two hours whileoutside.

Last year an estimated68,130 people in the UnitedStates were diagnosed withmelanoma — the most danger-ous form of skin cancer — andan estimated 8,700 died,according to the NationalCancer Institute. Nearly $2 bil-lion is spent treating the diseaseeach year.

AP business writer TomMurphy contributed to thisstory from Indianapolis.

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9THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

CBRE wins $1.1 million SF lab,office portfolio leasing assignment

The San Diego office of LosAngeles-based CB RichardEllis (NYSE: CBG) has wonthe leasing assignment for a1,100,000-square-foot, classA office and laboratorybuilding portfolio owned byHCP Inc.

The HCP San Diego labportfolio consists of 18 build-ings, including 13 in theTorrey Pines submarket, threein the UTC submarket andtwo in Sorrento Mesa. Spaceis available in sizes rangingfrom 1,500 square feet up to82,000 square feet. Theportfolio contains lab, officeand research and develop-ment space. In addition toclass A interior improve-ments, portfolio amenitiesinclude on-site dining, fitnessfacilities, walking trails and24/7 security.

HCP is the largest publiclytraded (NYSE: HCP) realestate trust focused on thehealth care industry and is amember of the S&P 500.Established in 1985, HCPowns more than 1,000 prop-erties in 42 states across var-ious property types, includinglife science, office, medicaloffice, senior housing, hospi-tality and skilled nursing.

Mike Dorris, director of lifescience estates at HCP, saidhiring CBRE to provide leasingservices “will allow HCP toleverage internal resourcesand expand our access to newrelationships and investment

opportunities in San Diego.”“This assignment cements

our company’s reputation asthe premier life sciences realestate services provider inSan Diego and we are grate-ful to HCP for what we con-sider a huge vote of confi-dence in our abilities,” saidMark Read, senior managingdirector for CBRE.

Richard Danesi, JedStirnkorb and Ryan Egli ofCBRE will provide day-to-dayleasing and transaction man-agement services for theportfolio.

About CB Richard EllisCB Richard Ellis Group

Inc., a Fortune 500 and S&P500 company headquar-tered in Los Angeles, is theworld’s largest commercialreal estate services firm (interms of 2010 revenue). Thecompany has approximately31,000 employees (exclud-ing affiliates), and serves realestate owners, investors andoccupiers through more than300 offices (excluding affili-ates) worldwide. CB RichardEllis offers strategic adviceand execution for propertysales and leasing; corporateservices; property, facilitiesand project management;mortgage banking; appraisaland valuation; developmentservices; investment manage-ment; and research and con-sulting. Please visit our web-site at cbre.com.

Submitted by CB Richard Ellis

US plan aims to increase import safetyWASHINGTON (AP) —

U.S. food and drug regulatorswould share more informa-tion with their foreign coun-terparts as part of a multifac-eted strategy to police thesafety of millions of importedgoods.

A Food and Drug Admin-istration report issuedMonday lays out a long-termplan to deal with the flood ofimports to the United States,which have quadrupled overthe past decade.

The agency already sharesinformation on drug inspec-tions with regulators inEurope and Australia. ButFDA commissioner Dr.Margaret Hamburg said amore comprehensive, globalcoalition would be needed tostop unsafe imports fromentering the United States.

“The FDA must further col-laborate and leverage in orderto close the gap between ourimport levels and regulatoryresources,” Hamburg said in astatement.

The FDA hopes to have thecoalition in place by this timenext year, though officials saidthey have not yet reached outto their counterparts overseas.

While more FDA inspectorswill be part of the plan, FDAofficials have long acknowl-edged they cannot “inspecttheir way to safety.” Theagency is responsible forimports from more than300,000 foreign facilities in

150 different countries.The FDA’s plan revives sev-

eral approaches that havebeen touted by FDA officialsfor more than a decade:

• increased data sharingwith regulators in foreigncountries;

• computerized systems foridentifying the highest-riskimports;

• third-party contractors tohelp inspect more plants.

The FDA report paints adaunting picture for regula-tors tasked with assuring thesafety of most foods, drugs,cosmetics and medical devicessold in the United States.Nearly two-thirds of all fruitsand vegetables consumed inthe United States are imports,while 80 percent of pharma-ceuticals ingredients areimported from abroad.

“The shift in global productflows will make it difficult toidentify the ‘source’ of a prod-uct and to ensure that all play-ers along the supply chainmeet their safety and qualityresponsibilities,” states thereport.

Pew Health Group’s direc-tor of medical programs,Allan Coukell, said the agencyis signaling a new willingnessto collaborate with its peersaround the world.

“They are saying ‘the worldhas changed and we will haveto change how we exercise ouroversight responsibilities,’”Coukell said. “They are not

pretending the status quo willdo and they are not pretend-ing this will go away.”

The FDA has taken steps toincrease foreign inspectionsin recent years. The agencyopened its first inspectionoffices in China and India in2008 and 2009. That initia-tive followed dozens of deathsand hundreds of allergic reac-tions in the United Stateslinked to a contaminatedheparin blood thinner —which contained a key ingre-dient made at a Chinese facil-ity.

The FDA points out that itincreased inspections of for-eign drug-manufacturingsites by 27 percent between2007 and 2009. But govern-ment investigators say theagency is still inspecting lessthan 11 percent of the plantson its own list of high-prioritysites, according to a 2010Government AccountabilityOffice report.

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Cosmetics companies sued over ‘organic’ labelsBByy PPAAUULL EELLIIAASSThe Associated Press

SAN FRANCISCO — An environmentalgroup filed a lawsuit last week against 26 cos-metic companies, claiming they are improperlylabeling products such as shampoo, facial wash-es and soaps as organic.

The Center for Environmental Health said inits lawsuit filed in Alameda County SuperiorCourt that the companies are violating aCalifornia labeling law requiring organic prod-ucts to contain at least 70 percent organic ingre-dients.

Organic labels connote the natural ingredi-ents used to make the product were grownwithout pesticides, chemicals and other tradi-tional methods now thought to be unhealthy.

There has been growing confusion anddebate over what constitutes organic and agrowing number of false labeling lawsuits.

The center previously sued organic heavy-weight HHaaiinn CCeelleessttiiaall GGrroouupp IInncc.. in May, claim-ing its Jason and Avalon Organics brands weremislabeled. Other Hain brands were includedin the lawsuit filed last week. A company repre-sentative didn’t return a call seeking comment.

Legal disputes over organic labeling initiallytargeted food growers in 2007. The next year,cosmetic products claiming to have organic

ingredients were targeted. None of those law-suits have been resolved.

In the latest action, the Oakland-based centeralleges in its lawsuit that popular organic cos-metic companies such as KKiissss MMyy FFaaccee, AAlllliiaanncceeBBoooottss and others violated the CaliforniaOrganic Products Act of 2003, which mandatedthe 70 percent rule. Neither company returneda phone call.

Executive Director Michael Green said thecenter purchased dozens of the products earlierthis year. He said a simple reading of the ingre-dients list on the back of many productsrevealed they fell short of meeting the 70 per-cent threshold.

“For years, organic advocates have called onpersonal care companies to fix their improper‘organic’ labels, but our recent purchasingshows the industry is still rife with unsubstanti-ated organic claims,” Green said.

The center wants to encourage companies touse organic ingredients, and ensure that con-sumers can trust organic labels to be meaning-ful and consistent, he said.

The federal government doesn’t have organiclabeling rules for cosmetic products. But theU.S. Department of Agriculture approvedCalifornia standards.

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10 THURSDAY, JUNE 23, 2011 • Who’s Who in Health & Life Sciences • THE DAILY TRANSCRIPT®

The CB Richard Ellis Life

Sciences Group wishes to

thank HCP for awarding us

the leasing assignment on

18 buildings in San Diego

totalling over 1.1 million

square feet

laboratory space.

HCP

CB RICHARD ELLIS, INC.Broker Lic. 00409987

www.cbre.com/SanDiegoFor leas ing informat ion, contact :

RICHARD DANESILic. 01869864

JED STIRNKORBLic. 00888859

RYAN EGLILic. 01445615

© 2011 CB R i c ha r d E l l i s , I n c . T h i s i n f o rma t i on ha s b een ob t a i n ed f r om s ou r c e s b e l i e v ed r e l i ab l e . We have no t v e r i f i e d i t and make no gua r an t e e , wa r r an t y o r r e p r e s en t a t i on abou t i t . An y p r o j e c t i on s , op i n i on s , a s s ump t i on s o r e s t ima t e s u s ed a r e f o re xamp l e on l y and do no t r e p r e s en t t h e c u r r en t o r f u t u r e p e r f o rmance o f t h e p r ope r t y . You and y ou r ad v i s o r s s hou l d c ondu c t a c a r e f u l , i n dependen t i n v e s t i ga t i on o f t h e p r ope r t y t o d e t e rm ine t o y ou r s a t i s f a c t i on t h e s u i t ab i l i t y o f t h e p r ope r t y f o r y ou r n eeds .

We Build Pride

9752 Aspen Creek Ct. Suite 150

San Diego, CA 92126(858) 552-0600

License #502376

Director of Business Development

(858) 334-4131

construction projects.

savory. Senomyx is at the fore-front, having identified thesetaste receptors so it can acti-vate flavors and either reduceor amplify them.

“We use robotic screeningsimilar to what’s used in drugdiscovery to identify newingredients that interact withthe receptors that amplifysweetness, block bitterness orcreate flavors. We use similartechnology, but for a very dif-ferent outcome,” said GwenRosenburg, vice president ofcommunications at Senomyx.

Senomyx has a sucraloseenhancer that can be used bymanufacturers to reduce theuse of sucralose by 75 percentwhile providing the sweetnesscustomers want. Its sucroseenhancer can reduce thequantity of sucrose by 50 per-cent.

This gives customers thedouble advantage of lowercalories and lower costs, butthe same taste.

Rosenburg explained thatSenomyx’s products don’t havea taste of their own, but theyamplify the taste of sugar orMSG, thereby making it possi-ble to reduce the quantityused.

This sounds a lot like tofu,which adapts to the taste ofthe dish it’s prepared for, buthas no strong taste on its own.Rosenburg laughed, butagreed with the comparison.

“So Senomyx saves costs formanufacturers and provides ahealth benefit as a bonus,” shesaid.

Some of the company’sproducts in the market rightnow include savory flavorsthat replace or reduce the useof MSG in items sold in theAmericas, Africa and thePacific Rim. It licenses thetechnology to its customerswho manufacture and marketthe products.

FFiirrmmeenniicchh, a Swiss flavorand fragrance company, hasjust begun manufacturing thesucralose flavor enhancer thatwill hit the market soon.

Also in the pipeline is a

sucrose enhancer to reducethe use of sugar. Rosenburgexpects this will become thecompany’s flagship productgoing forward, at least for awhile.

Senomyx has a library ofmore than 800,000 potentialnew ingredients that it has puttogether after identifying thetaste receptors and screening.

Future plans includeresearching an enhancer forfructose, such as the type usedin high fructose corn syrup,which can reduce the quantityof the syrup used. Also beingresearched is a salt flavorenhancer that can reduce theuse of salt.

Allylix, on the other hand,focuses on terpenes, whichoccur naturally in plants, forflavors, fragrances and anti-fungal products.

Fruits and vegetables havephytochemicals, of which ter-penes are a big part. Terpenesare a large class of compoundsthat act as phytochemicals.

“There are some in the mar-ket but they are very complex,cyclic structures that occur invery small quantities, so theywere hard to produce until wefound a way to produce themefficiently, using yeast,”explained Carolyn Fritz, presi-dent and CEO of Allylix.

The company has a suite ofseven flavors it will market butnot manufacture, and it alsocollaborates with customers todevelop fragrances and fla-vors.

Valencene and nootkatoneare the two major products,used in beverages, perfumesand even in insect and mos-quito repellants.

Valencene is an aromaingredient drawn from theskin of Valencia oranges, whilenootkatone is a grapefruit fla-vor. Both are used in citrus-flavored sodas and fruit juices,but have a limited market dueto the high cost of extractingthem.

“If you look at the spot mar-ket, valencene sells for $750per pound while nootkatonesells for $2,400 a pound. You

don’t need a lot; smallamounts can impart a lot offlavor, but lowering the costswill expand their use,” Fritzsaid.

Allylix wants to reduce thecost and expand the marketfor these products with itsproprietary technology. It usesa sugar source, a medium tomake the yeast grow and theyeast itself, producing them ina fermenter in a sustainablemanner, without using thefruit peel.

Nootkatone, aside frombeing a flavor and fragranceenhancer, is also an effectivetick repellant, safe to use andenvironmentally friendly,unlike other products on themarket.

Ticks cause 30,000 cases ofLyme disease each year, butpeople tend to shy away fromusing repellants because of thestrong odor and greasy feel. Sothe Center for DiseaseControl, which has beensearching for a natural insectrepellant, supports theresearch and development ofnootkatone.

Out of the seven products inAllylix’s collection, these twoare now on the market, andthe other five will be launchedsoon.

Fritz said that once produc-tion costs are reduced, theycan be used in householdproducts like detergents, aswell as beverages and fooditems.

Terpenes can also be used asbiofuels, although producingthem is an energy intensiveprocess, so the economics ofdoing so are challenging.

Future potential is unlimit-ed according to Fritz, whocompared terpenes to indus-trial enzymes that emerged inthe 1970s and now enjoy amulti-billion dollar market.

“There’s a global movementtoward greener, cleaner chem-icals and we are one part ofthat trend,” Fritz said.

Nagappan is a San Diego-based freelance writer.

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