Ocata Therapeutics Inc fka OCAT

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Shift pleases stem cell researchers
Now that Democrats have control of Congress, scientists say they look forward to greater acceptance
By David Morrill
MEDIANEWS STAFF

Bay Area biotechnology companies involved in embryonic stem cell research couldn't be happier with the results of Tuesday's midterm elections.

But it's not necessarily prospects for future funding that has them giddy.

For pioneers such as Michael West, who founded Menlo Park-based Geron Corp. and is now the chief scientific officer and chairman for Alameda-based Advanced Cell Technology Inc., it's the idea that their research might finally be understood and accepted.

With Democratic control of Congress, West says he hopes that stem cell companies he has been involved with can now focus less on the politics of stem cell research and more on saving lives.

"My enthusiasm is that we finally might have the chance to push this science forward and advance a field that should be much further along now than it is," West said.

A majority of voters showed their support for stem cell research in various races and measures across the country.

The most prominent example was in Missouri, where voters passed a constitutional amendment to protect stem cell research. Also, Democrat challenger Claire McCaskill, who made stem cell research one of the central themes in her campaign, defeated incumbent Jim Talent.

Actor Michael J. Fox, who suffers from Parkinson's disease, campaigned in favor of McCaskill because of her support for the research.

"I believe that the stem cell issue was a big reason why many of these races were won," West said.

Shareholders seemed excited about prospects for federal funding of stem cell research as well. Shares of Geron climbed 28 cents, or 3 percent, to close at $8.66 Wednesday, and Advanced Cell Technology climbed 11 cents, or 13 percent, to close at 92 cents. Also, shares of Palo Alto-based StemCells Inc., which focuses on adult stem cell therapeutics, rose 32 cents, or 10 percent, to $3.39.

President Bush has been one of the biggest opponents of embryonic stem cell research, using his veto power to restrict funding that would have helped the budding field in 2001. He was against the idea that embryos would need to be destroyed in the research process.

Control of the House and increased support in the Senate, which overwhelmingly supported rescinding Bush's restrictions, might allow Congress to override a presidential veto.

But analysts are issuing a caveat that government funding isn't likely to have a direct or immediate impact on biotech companies. Most of the funds, if granted, would likely go to research at universities such as Stanford University and UC Berkeley.

"What investors need to realize is that even though the Democrats have the House, and may soon have the Senate, the motions of getting the funding passed, and figuring out how to divide it up, still need to happen," said Ren Benjamin, an analyst with Rodman and Renshaw. "So financially, this is still years away from having a meaningful impact on a biotechnology company."

Indirectly, however, biotech companies would benefit if the government decides to fund stem cell research.

Support from Democrats could lead to "more resources available for stem cell therapeutics," Benjamin said. For example, more research done at the university level could lead to licensing of patents to companies producing marketable therapies. Also, it may influence aspiring scientists to focus on this field.

Stem cell proponents say that with proper support, stem cell research could help cure numerous diseases and disorders, including Parkinson's, paralysis and diabetes.

"The bottom line is if the field advances, then everyone does better," West said. "Even though it has been fun to be able to get to do all the work at tiny biotech companies like Geron and Advanced Cell Technology, I would much rather be able to see others be able to do research as well to help find ways to stop this needless human suffering."

One of the projects currently in the works at Advanced Cell Technology's headquarters is using stem cells to address skin issues such as repair of burns, lesions and scarring.

Recently, Advanced Cell made headlines when it published a study in which the company reported coming up with a technique that could safely extract embryonic stem cells without destroying the embryo.

West, who called himself a "lifelong Republican," changed parties several years ago because he felt his party was letting him down.

"It pains me to see the Republican Party go against this, so how could I support a party that didn't support this research?" he said. "Every day we delay support for stem cell research is costing more human lives and suffering."

David Morrill of the Tri-Valley Herald can be reached at [e-mail].
http://www.contracostatimes.com/mld/cctimes/news/politics/15968366.htm