Selling Stem Cells
Biotech Investors
Embryonic stem cells (ES cells) are valuable to researchers because they have a quality called pluripotency – the ability to differentiate into any kind of germ layer (endoderm, mesoderm and ectoderm). Stem cells thus can be used for a great variety of research projects, because they can give rise to any fetal or adult cell type. Regeneration of tissues is a prime area of research. Also, ES cells are investigated as potential treatments for cancer, genetic diseases, juvenile diabetes and a number of other disorders.
ES cells are normally harvested from the inner cell mass of human embryos that are four to five days old. They can be propagated in vitro indefinitely, which is why we refer to “lines” of stem cells. If this sounds like it may have profitable business potential, you would probably like to meet Dr. Michael West, the CEO of the California biotech firm BioTime Inc. Businessmen sell just about everything – they sell cars, they sell rumors, they sell leads – but Dr. West sells stem cells. And he’s made quite a go of it. His secret? He creates stem cells from ordinary human cells instead of embryos.
The technology he has patented creates induces pluripotent stem cells (iPS). Since this technology does not involve egg cells or embryos, it sidesteps the ethical questions raised by the use of ES cells, and may give a practical method for developing therapeutic cell lines on a commercial basis.
To be sure, BioTime will also sell you old-fashioned ES cells, but the new technology may make ES cells obsolete. In particular, BioTime specializes in selling ES cells that have inherited genetic diseases, such as cystic fibrosis and muscular dystrophy. These cells are very important for research into the cures for genetic diseases, and offer great promise for medical breakthroughs in the future.
BioTime also sells a second type of cell, called a progenitor cell. A progenitor cell is midway between a stem cell and a fully differentiated cell. That is, a progenitor cell can be turned into many, but not all, of the different types of body cells. BioTime currently sells over 100 types of progenitor cells. BioTime stock can be bought on the New York Stock Exchange for around $5 a share (the YTD high was $9.94). BioTime owns a number of subsidiaries that provide specialized products. For instance, it owns Cell Cure Neurosciences, Ltd., which sells therapeutic products derived from stem cells that treat eye and nerve degeneration diseases. Teva Pharmaceutical is a minority shareholder in BioTime. For adventurous biotech investors, BioTime deserves serious consideration.
