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WIRE: 07/23/2001 6:06 pm ET
Small Biotech Company Develops New Stem Cell Lines
By Toni Clarke

NEW YORK (Reuters) - BresaGen Ltd., a small Australia-based
biotechnology company, said on Monday it has developed
four human embryonic stem cell lines, joining a handful
of companies worldwide to have cloned human cells
for medical research.

The company, which is listed on the Australian Stock Exchange
and plans to list in the U.S. shortly, said the breakthrough
is a critical step in its research for treatments
of neurodegenerative conditions such as Parkinson's disease,
stroke and spinal cord injury.

The company said the breakthrough occurred at its facility
in Athens, Georgia. The company established a laboratory
in the U.S. early this year.

The development comes as regulators in Australia and the
U.S. debate whether to allow federal funding for embryonic
stem cell research. Stem cells are parent cells whose progeny
can turn into any of the 220 cell types in the body. They can
reproduce themselves ad infinitum, providing material that
researchers believe could help fight disease.

"Our particular interest is in learning how to make cells
that are useful in treating spinal cord injuries and diseases
such as Parkinson's," said John Smeaton, the company's
chief executive, who splits his time between Georgia
and Adelaide. "If we can turn our cells into pure populations
of other types of cells, then that population could be useful
for therapeutic purposes."

The creation of pure, stable cell lines is not easy. Nature
magazine estimates there are around 20 human cell lines
world wide. Each line originates from a cell taken from the inside
of a one- to five-day embryo. Smeaton said BresaGen's supply
of embryos come from an in-vitro fertilization clinic. He said
the company only uses embryos that would have been
discarded y the clinic.

BresaGen is a tiny company, with just $1 million in revenue
in 2000. Yet it has already made news as the company to
clone Australia's first pig. It also boasts Steven Stice,
a professor at University of Georgia and the first person
in the world to clone cattle, as a key consultant.

BresaGen said it plans to license access to its cell lines
to researchers or to trade access in return for certain rights
to any products developed from them.

The company is working to prove it can cure humans from
Parkinson's disease in the same way it has cured mice.

"There has been some research in this area and the results
have been mixed," said Smeaton. "We're trying to build on
that research."

The company's next step is to target the exact place in the brain
to insert the new cells. It is working with five universities
to develop a technology. It is also working on a technology
that would grow cell lines using no material from animals.

To date, all human cell lines have been developed using a
so-called feeder-layer of nutrients that come from mice.
By the time BresaGen goes into human trials -- which
Smeaton estimates could be in two to three years time -- it
wants to have replaced mouse-based feeder-layer with
a human feeder-layer. That's because regulators are concerned
that using mice or other animals could result in viruses
jumping into the human population.

"If we developed a product using the method we use now it
would be treated much more strictly by regulators than if we
used cells which had had no contact with animal matter,"
Smeaton said.

Developing a human-based feeder-layer, however, is not just
a matter of transferring the technique used to produce mouse
nutrients. That's because the feeder-layers come from mice that
are at a late stage of embryonic development. They are about to
be born.

"Obviously you can't do that with human embryos," Smeaton
said. However, he said BresaGen is a matter of months away
from completing an acceptable alternative method
of producing human nutrients.

"We're well down the track to doing that," Smeaton said.
"We're talking months rather than years."

SOURCE: Reuters News Service
http://www.abcnews.go.com/wire/US/reuters20010723_491.html

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