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Outside the U.S., businesses run with unproved stem cell therapies
By Alan Zarembo, Times Staff Writer
February 20, 2005

-A desperate injection of stem cells and hope

At the junction of desperation and the fantasies of science is a business
opportunity.

Stem cell clinics offering unproven therapies for a range of diseases have
become a multimillion-dollar industry, operating in Mexico, Ukraine,
Barbados, China and elsewhere.

Charging tens of thousands of dollars, the clinics typically draw patients
who have exhausted conventional therapies.

The backgrounds of the people behind the clinics vary - many see themselves
as crusaders for the disabled and dying.

The field of stem cells is so new that almost anybody can claim its
potential. Without subjecting their therapies to clinical trials - the
standard of Western medicine - it is difficult to know if the treatments
work.

The clinic operators can point to satisfied patients but not to scientific
proof.

At least three clinics trace their roots to the Institute for Problems of
Cryobiology and Cryomedicine in Kharkov, Ukraine. Founded in 1972, the
institute researched techniques for freezing biological samples for use in
medicine and agriculture.

For nearly two decades, scientists at the institute experimented with
solutions made from aborted fetuses, injecting people for ailments including
diabetes, multiple sclerosis and depression.

Dr. Valentin Grischenko, the institute director who led much of the
research, said many patients showed significant improvements.

In the early 1990s, Ukrainian researchers familiar with the institute's work
started a Kiev company called EmCell, charging $25,000 per treatment.

Some of its first American patients came about 10 years ago with Dr. William
C. Rader, a Malibu psychiatrist who ran a chain of eating disorder clinics
and worked as an on-air medical expert for KABC-TV in Los Angeles during the
1980s.

Rader, who had heard about EmCell through a business contact, later formed
his own company, offering treatments in the Bahamas.

The Bahamian government asked him to leave in 2000 after a New York
television station aired a critical report.

Rader, who said his cells come from the former Soviet republic of Georgia,
now meets patients one weekend a month in the beachfront city of La Romana
in the Dominican Republic. His company, Medra Inc., is based in Malibu.

Some families say he has reduced their children's suffering from brain
damage and autism.

He said he has arranged more than 1,000 injections, charging $25,000 for the
initial treatment and $8,500 for each follow-up.

"I have literally cured early Alzheimer's," he said.

"I think there is a higher power," Rader said. "I feel that I am just simply
a conduit."

Rader, 66, said he has not published anything about his therapy because that
would open him to attack from a "conspiracy" of scientists, government
authorities, pharmaceutical companies and abortion opponents.

Dr. Yuliy Baltaytis, a Ukrainian physician who had collaborated with Rader
in Europe and the Bahamas, said he doubted his homeland would get credit for
the procedure.




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