by Lambert Strether
April 29, 2020
from
NakedCapitalism Website
Donald Trump
(left side) |
Entrepreneur and venture capitalist Peter Thiel is one
of the billionaires who is backing the group. He is said
to be worth
$2.3
billion
(center) |
The
group consisting of
a dozen doctors is led
by 33-year-old Dr. Thomas Cahill a
physician-turned-venture capitalist
(right side) |
Photo's Source
The Wall Street
Journal (also at MSN website)
produced an intriguing piece the other day, "The
Secret Group of Scientists and Billionaires Pushing a Manhattan
Project for Covid-19," which while picked up and signal-boosted
by other venues,
...doesn't
seem to have generated any additional reporting.
The scientists,
billing themselves as "Scientists to Stop COVID-19," have produced
an oddly untitled deliverable [1]
It's worth
a read...!
(Two hours ago,
news came that
the administration has initiated "Project Warp Speed," which
seems inspired by this project, but there's no reporting on
personnel, and it's not clear they adopted the recommendations of
the scientists.
I'm guessing that
the issues I am about to raise for the deliverable of the "Secret
Group" will also apply to Project Warp Speed). [2]
Given that
"personnel is policy," I'll first reduce people mentioned in the
Wall Street Journal story, and the scientists who signed the
March-April deliverable to tabular form.
After that, I will take a
quick look at the scientists' deliverable, focusing especially on
issues of governance and restoring our economy.
The Manhattan
Project cost $23 billion in US dollars and employed 130,000 people.
I don't think anything of that scale is being proposed,
unfortunately.
Now let's look at
the billionaire and multimillionaire backers of… well, whatever the
project is really called...
I'll call it, following the Wall Street
Journal, the 'Secret Group'...
In addition to
backers, there are also
fixers, who connect the backers and the scientists to the
administration, agencies, and other firms, primarily
in Big Pharma.
I have ordered the
backers and fixers, not alphabetically but by net worth.
Table I: The Backers (and Fixers)
Non-Scientists |
Firm(s) |
Net Worth |
Other |
Michael Milken |
Milken Family
Foundation |
$3.7 billion |
Convicted felon |
Peter Thiel |
Clarium Capital,
Palantir |
$2.2 billion |
Venture capitalist |
Brian Sheth |
Vista Equity
Partners |
$2 billion |
Private equity |
Jim Palotta |
Raptor Group,
Tudor Investment |
$1 billion |
Private investor |
Thomas Hicks, Jr. |
Hicks Holdings,
LLC |
$700 million |
Private equity,
Chair, Republican National Committee, Trump
National Finance Co-Chairman |
Steve Pagliuca |
Bain Capital |
$450 million
|
Private equity |
David Solomon |
Goldman |
$100 million |
CEO |
Nick Ayers |
America First
Policies |
$12-$54 million |
Aide to Pence |
|
In essence, the
country would be betting on venture capitalists and private equity
specialists to solve the COVID-19 epidemic; oligarchs, in other
words.
I'm not entirely
sure that's a good bet, even leaving aside debacles like Uber;
private equity is, after all, responsible for a range of social
ills, including
surprise billing from practices in privatized emergency rooms,
to our
collective difficulties in getting a good night's sleep on a decent
mattress.
The presence of
fixers in the form of Trump's finance chair, in addition to Pence's
gofer, is also interesting.
It is rational to
develop connections to the current administration; however, the
backers may well regard saving the Trump administration's bacon as
the first priority - he has, after all,
done very well for them - with the successful taming of
SARS-COV-2 as a happy by-product, but a nice-to-have, not a
have-to-have.
But perhaps I'm too
cynical.
Now let us turn to
the scientists. I have listed them in alphabetical order, but I
removed all their degrees because they messed up the table.
Table II: The Scientists
Scientist
|
Primary Base
|
Serial
Entrepreneur |
Broad Institute of
MIT and Harvard |
Howard Hughes
Medical Institute |
Dr. Thomas J.
Cahill |
Newpath Management |
|
|
|
Dr. Benjamin
Cravatt |
Scripps Research
Institute |
• |
|
|
Dr. Lynn R.
Goldman |
Milken Institute
School of Public Health |
|
|
|
Dr. Akiko Iwasaki |
Yale |
|
|
• |
Dr. R. Scott Kemp |
MIT |
|
|
|
Dr. Michael Z. Lin |
Stanford |
|
|
|
Dr. David Liu |
Harvard |
• |
• |
• |
Dr. Michael
Rosbash |
Brandeis |
|
|
• |
Dr. Stuart
Schreiber |
Harvard |
• |
• |
|
Dr. Edward
Scolnick |
Merck |
|
• |
|
Dr. Jonathan W.
Simons |
Prostate Cancer
Foundation |
|
|
|
Dr. Ramnik Xavier |
Harvard |
|
• |
|
|
This certainly is a
list of the best and the brightest (If I had a column headed
"Nobel," there would be two).
Nevertheless, in
essence, the country would be betting a committee dominated by
serial entrepreneurs in the biomedical field and by two institutions
- the Broad Institute of MIT and Harvard, and the Howard Hughes
Medical Institute - to come up with the correct recommendations to
solve the pandemic.
That seems more
than a little risky.
Where, for
example, is Johns Hopkins?
And why there
are no epidemiologists?
Having looked at
personnel, I'm going to look at two policy recommendations.
(I'm skipping over
the Committee prioritizing remdesivir; [2] my layperson's sense is
that there are a lot of potential treatments out there, and it makes
more sense to accelerate many rather than one. I also note that the
stock market just had a massive pop based on a preliminary
remdesivir result from Gilead, and I certainly hope that none of the
backers were front-running it.)
First policy
recommendation: Massive testing.
From the Taleb-adjacent New England Complex Systems Institute,
Chen Shen and Yaneer Bar-Yam, "Massive
testing can stop the coronavirus outbreak":
At this time in
many places in the world, including the US, there are
insufficient tests to achieve widespread testing. This limits
our ability to use this approach.
Still, it is
possible in principle for the test to be produced rapidly and
cheaply and then applied massively to identify cases limiting
the need to use other approaches such as lockdowns.
Once a large
number of tests are available, massive specific testing can
achieve the desired outcome of stopping the outbreak.
The scientists
write on page 12 of 'Scientists to Stop COVID-19' (footnotes omitted):
All employees
and students must certify (via
smartphone app), before leaving home, that they are not
experiencing enough of the following COVID-19 symptoms
to exceed a calculated risk, weighted by symptom frequency, of
being infected with SARS-CoV-2 (incidence frequency and standard
error areshown, with data sources):
-
Fever
(0.64±0.030)2–4
-
Sinus
pain (0.50±0.18)4
-
Cough
(0.46±0.032) 2–4
-
Reduced
or altered sense of smell or taste (0.44±0.17)
-
Expectoration (0.32±0.036)
-
Stuffy
nose (0.25±0.15)
-
Chills
(0.18±.044)
-
Fatigue
(0.18±0.025)
-
Sore
throat (0.13±0.039)
-
Headache (0.13±0.037)2,4k. Difficulty breathing
(0.11±0.034)2,4l. Joint or muscle pain(0.099±0.023)3,4m.
Diarrhea (0.056±0.015)
-
Vomiting (0.026±0.018)
This
certification should detect the vast majority of symptomatic
cases, including mildly symptomatic ones, among those who
accurately respond.
None of these
individual symptoms are specific to COVID-19, but in aggregate
they can be used to assess an individual's risk of being
infected with SARS-CoV-2, and even if caused by other pathogens
are a prudent basis for staying at home.
The acceptable
level of calculated risk may differ among occupations (for
example, nursing home caregivers could be subject to a very low
risk threshold).
First,
the Complex Systems Institute lists five approaches to mass
testing:
Self-reporting
and diagnosis, contact tracing, lockdown - geographic community
identification, neighborhood generic symptomatic testing,
massive specific testing, and targeted random sampling.
The scientists
have opted for the first approach, but I would expect some
discussion. Instead, they simply self-reporting and diagnosis
via an app.
Second,
What
on earth could "certify" possibly mean?
What is the "certifying
authority"?
Local health
agencies?
The State?
The Federal
Government?
Facebook...?
What is the
penalty for a false claim?
Or is this
simply a "nudge theory" endeavor, with the certification
performing the function of the "Close Door" button on an
elevator that does not actually function?
Third,
What
happens to the data, which includes a person's identity, their
home - or, I suppose, wherever they slept last night - and
medical data?
Given
Peter Theil of Palantir's presence as a backer, one might suspect
nothing good...
Fourth, only
81% of the United States population has a smart phone.
What about
them?
Will there be a
subsidy to buy them?
And what about
people who prefer to use contract phones?
What happens if
you lose your phone?
What happens if
you lend your phone?
What happens if
a whole family has one phone only?
Fifth,
Surely this
depends on each individual having a unique identifier? That
amounts to a national ID, which is, to say the least,
controversial.
Sixth,
A mere
"certification," in the absence of free testing and
free treatment, is simply an incentive to game the system.
If people need
to feed their families, certification will be a secondary
consideration.
All in all, one
might speculate that the backers and the scientists are both a
little detached from the majority of the population.
'Second policy
recommendation: An "empowered council',
from page 10 of 'Scientists to Stop COVID-19':
We propose that
the federal government appoint an empowered council
that will work with U.S. and global stakeholders to coordinate
the required development and investment actions in an efficient,
time-sensitive, and non-partisan way.
The proposed
centralized approach has proven effective in the past while
responding to global emergencies.
A similar
approach effectively accelerated the development of a polio
vaccine in the 1950s.
In this
celebrated case, the private National Foundation for Infantile
Paralysis (later known as the March of Dimes) provided
centralized funding and technical decision-making to ensure the
development and availability of a vaccine for what was at the
time a devastating infectious disease.
Such
coordination requires centralized decision making to manage the
activities across multiple individual promising approaches, and
among the supporting functional and funding efforts - thus our
recommendation to appoint an "empowered council".
A prospective
agreement must be established primarily among the regulators,
the key funders, and key global stakeholders to ensure that the
empowered council has the authority to direct the overall
enterprise.
The empowered
council should have a strong technical/scientific background
with direct experience in the previous development of infectious
disease vaccines.
Such a central
coordinating and decision mechanism can ensure alignment among
regulatory requirements for clinical and pre-clinical evaluation
of vaccine candidates and can effectively manage the large
at-risk scale-up and manufacturing investments needed to ensure
ready availability of a vaccine as soon as its safety and
efficacy has been demonstrated.
It can also
manage the complexities of the multiple parallel technical
approaches that will be required.
They really do love
that phrase, "empowered council," don't they?
(It reminds me of how,
back in the day, affirmative debaters would propose "a magic board"
to solve whatever problem the status quo had been unable to solve).
Note, however, that "the federal government" doesn't appoint
anybody; the executive branch typically does, the legislative branch
sometimes does, and I suppose the judicial branch might.
So already
I think that the "empowered council" has stumbled coming out of the
gate.
Anyhow, I have
questions.
First,
will the proceedings of the "empowered council' be open to the
public? Will minutes be published? Will there be any democratic
accountability at all?
Second,
can the authors really believe that the
March of Dimes is an appropriate precedent? It was
legitimated by FDR and it was in existence for twenty years (not
"warp speed"). It proposed that every child in the United States
contribute a dime - that's why there's an FDR dime - for the
eradication of polio. (Industrial production of the vaccine was
also organized by - gasp - the Soviet Union, which led to
testing in the United States). What's obvious about the March of
Dimes is its deep small-d democratic roots, which I can only
think would be very useful in vaccine compliance. The scientists
propose nothing like that.
Third,
who enforces the "prospective agreement" and what form does it
take? Is it an international treaty?
Fourth,
what on earth is a "global stakeholder"? What kind of document
can
Bill Gates, Giliead, the United States, and the Wellcome
Foundation all put their names to, as if Bill Gates (say) were a
sovereign, and the United States was a private person? Lawyers
in the readership?
Fifth,
what are the conflict of interest requirements?
Sixth,
for vaccines and treatments developed under the aegis of the
"empowered committee," what are the intellectual property
rights? Will they be equivalent to the Salk and Sabine vaccines,
given that the March of Dimes has been cited as a precendenty?
Seventh,
how long can members of the "empowered committee" serve, and
will the committee be sunsetted?
I must conclude,
but I don't think I can say much more than I have already said.
These matters seem to be moving very fast. It's not clear to me that
"efficiency," as neoliberals understand it, should be the primary
goal.
The
Manhattan
Project, after all, was very different institutional from this
proposal, and had a very different social basis, as did the March of
Dimes.
NOTES
-
Opening
sentence: "We are a group of passionate
citizen-scientists…." Ugh, "passionate." What is this, an
intern's cover letter? As for "citizen scientists," please
refer to Table I below.
-
Infection Control Today: "Those close to the project
have requested to remain anonymous because it hasn't been
officially unveiled to the American public." Oh. Another
secret group? Or the same one?
-
The words
"patent" and "intellectual property" do not appear in the
scientists deliverable.
Table I: The Backer and Fixers
Non-Scientists |
Firm(s) |
Net Worth |
Other |
Michael Milken |
Milken Family
Foundation |
$3.7 billion |
Convicted felon |
Peter Thiel |
Clarium Capital,
Palantir |
$2.2 billion |
Venture capitalist |
Brian Sheth |
Vista Equity
Partners |
$2 billion |
Private equity |
Jim Palotta |
Raptor Group,
Tudor Investment |
$1 billion |
Private investor |
Thomas Hicks, Jr. |
Hicks Holdings,
LLC |
$700 million |
Private equity,
Chair, Republican National Committee, Trump
National Finance Co-Chairman |
Steve Pagliuca |
Bain Capital |
$450 million
|
Private equity |
David Solomon |
Goldman |
$100 million |
CEO |
Nick Ayers |
America First
Policies |
$12-$54 million |
Aide to Pence |
|
|