stem cell research news: volume 3, no. 19
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December 1, 2001
Osiris Clears Final Patent Hurdle
for MSCs..................................1
Bush Creates Bioethics Council.4
ACT Creates First Cloned Human
Embryo.....................................6
Chinese Scientists Duplicate Gas-trointestinal Organs by Culturing
Stem Cells In Vitro ...................7
News Briefs ..... ......................... 8
Osir is Clears F inal Patent H urdle for Use of
Allogeneic Adult Mesenchymal Stem Cel ls
Company Says MSCs Are Plentiful, and Avoid Rejection by Im-
mune Systems
Osiris Therapeutics, Inc. (Baltimore, Md.) said it has cleared thefinal paperwork hurdle before receiving a U.S. patent coveringthe use of allogeneic human mesenchymal stem cells (MSC) in the re-
generation of a variety of connective tissues, including bone, heart
muscle, and cartilage.
Osiris believes the use of the donor-derived off-the-shelf
product for all clinical indications could make MSC-based cellular
therapies a feasible and cost-effective treatment for acute injuries as
well as for chronic diseases.
The only thing left is to print the patent up, Ken Moseley,
vice president for patents and business development, told SCR News in
an interview. The final patent award could come as early as a monthfrom now, he said.
The application protects the use of MSCs for the growth or
repair of all connective tissues, including bone, cartilage, muscle,
stroma, fat and other tissues. The MSCs may be administered systemi-
cally, locally or in a carrier. The cells may further be gene modified to
express genetic material of interest, according to the company.
Its really important, Moseley said. Weve shown that we
can use these cells in a fully allogeneic, fully mismatched, off-the-
shelf manner to avoid a lot of the problems that cell therapies in the
past have had.
These problems include high production costs, an inability to
address acute care indications, restrictions on the donor source based
on health or age and numerous logistical complexities.
One of the biggest problems is cost, he noted. Well see a re-
duction in cost of around twenty times if were able to use off-the-
shelf cells instead of a single production lot of autologous cells from
a patient.
In This Issue ... Tren d s in Brief...
Editorial Mission:
Stem Cell Research Newsis notaffiliated in any way with any advocacy,
trade, research or governmental organiza-
tion. We are dedicated to providing inde-
pendent, authoritative, up-to-the-minute,objective reportingon all facets of human
embryo and stem cell research. Informa-
tion contained in this newsletter is be-
lieved to be accurate and reliable at the
time of publication.
2001 by DataTrends Publications, Inc.
Whos Who in Stem Cell Research
Fall 2001 Edition
Updated, revised directory of researchers,
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Published Biweekly Since October 1999
Volume 3, No. 19
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In the future, after clinical trials and FDA
approval, Moseley said, off-the-shelf allogeneic
MSCs would be readily available to use in acute
care situations, such as treatment of a heart attack.
One would have the cells there in the
emergency room or in the lab for use in a heart at-tack patient, or in someone who has had a signifi-
cant bone break, Moseley said. So, its really a
big, big deal in overcoming a lot of the problems
with cell therapy.
MSCs Not Recognized by Immune System
The importance of Osiriss findings is twofold:
MSCs are easily produced and therefore abundant,
and they are not rejected by an organisms im-
mune system after transplantation.Rejection is a major problem in tissue
transplants. Typically, if you put cells from one
person into another person, or an organ such as
the heart, theres rejection, Moseley said. Pa-
tients are given immunosuppressive drugs to pre-
vent rejection.But MSCs somehow evade recognition by
cells of the immune system, then stably engraft
and differentiate into functional tissues. This all
happens without the need for drugs to suppress
the immune system, even when transplanted from
one species to another.
Osiris uses fully mismatched MSCs in its
preclinical models to demonstrate the lack of im-
munogenicity in bone repair in canines and ba-
boons, cardiac repair in swine and rats and menis-
cal regeneration in goats. Osiris has also shownthat allogeneic MSCs may be delivered in multiple
doses, from the same or different donors, without
immune recognition.
The company has put human MSCs into
sheep and rats and found that they engraft and dif-
ferentiate.
Abundant Supply of M SCs
The Osiris business model is based on the donor-
derived, off-the-shelf adult stem cell product.The company combines the allogeneic discovery
with its proprietary scalable closed system MSC
manufacturing process and cryopreservation for
simple product storage for greater than one year.
That allows immediate availability at the physi-
cian's site.
Its important to note that these MSCs
(Continued on page 3)
December 1, 2001Stem Cell Research News
Copyright 2001 by DataTrends Publications, Inc.
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Culture trays containing human embryonic stem cells. Photo by
Jeff Miller, courtesy of University of Wisconsin-Madison.
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are truly stem cells, Moseley said. They can re-
produce quite a bit from themselves, so we can
produce billions of cells from a given donation.
The same base MSC product is formulated
for different indications and delivered by infusion,
injection or by implantation on structural matricesto the site of the damaged tissue. This permits
substantial development, manufacturing and regu-
latory efficiencies.
Clinical trials are ongoing in the United
States and in Europe with MSCs for bone marrow
and peripheral blood stem cell transplantation sup-
port and in the United States for bone regenera-
tion.
Moseley said the company expects to
launch Phase I clinical trials in early 2002 for car-
diac regeneration post myocardial infarction andfor meniscal (knee) repair. The company is negoti-
ating with potential trial sites right now.
The purpose of the trials will be to investi-
gate the safety and utility of off-the-shelf MSCs.
Osiris has 27 U.S. patents, as well as sev-
eral allowed and pending applications.
The companys patents include the human
MSC itself from any starting material, gene-
modified MSCs, therapeutic methods, ex vivo dif-
ferentiation compositions and methods, produc-
tion and assay reagents.Osiris is also developing adult MSCs as a
delivery platform for gene therapy.
Contact: Ken Moseley, JD, 410-522-
5005, ext. 342, http://www.osiristx.com.
Bush Creates Panel to Study Stem
Cell Research, Other Bioethics
I ssues
Will Study of Fertility Issues Have a NegativeImpact on Stem Cell Research?
President Bush on November 28 issued an exec-utive order creating an 18-member bioethicscommittee to study and advise the president on
bioethical issues that may emerge as a conse-
quence of advances in biomedical science and
technology.
(Continued from page 2)
Stem Cell Research News December 1, 2001
Dean Clancy, a conservative policy advisor
in Congress, will serve as the first executive direc-
tor of the new national council.
Besides studying stem cell research, the
panel will examine the ethics of fertility and repro-
ductive science. And some experts are worried
this may have a negative impact on human embry-onic stem cell research down the road.
The new Presidents Council on Bioethics,
which will have only a two-year life span, is em-
powered to study a broad array of biomedical
fields, including embryo and stem cell research,
assisted reproduction, cloning, uses of knowl-
edge and techniques derived from human genetics
or the neurosciences, and end of life issues,
which primarily means euthanasia or mercy
killing.
Perhaps most surprising is the fact that thepanel will look at assisted reproduction, a term
that encompasses donor insemination, in vitro fer-
tilization and other reproductive therapies and
technologies.
In vitro fertilization is used to help women
become pregnant. It is a long-established medical
procedure in the U.S. and around the world.
Thousands of American women with fertility
problems attempt to conceive by artificial repro-
duction every year.
The professional organization that repre-sents fertility specialists, the American Society for
Reproductive Medicine, was founded in 1944 and
has members in all 50 states and 100 countries.
The ASRM has recorded more than
100,000 U.S. births 250,000 worldwide as
the result of in vitro fertilization since the proce-
dure produced the world's first test-tube baby in
England in 1978.
Pres. Bush named University of Chicago
bioethicist Dr. Leon R. Kass to chair the council.
None of the other 18 members have been desig-
nated. The president will name ethicists, scientists,
doctors, lawyers and theologians to the council
over the next few weeks, the White House said.
Kass is an outspoken opponent of human
cloning, whether therapeutic or reproductive. He
testified before the House Energy and Commerce
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Subcommittee on Health hearing on human
cloning in June 2001.
According to reports, Kass once opposed
in vitro fertilization, but reversed his position. His
current worry is that fertility clinics may be prac-
ticing some form of cloning.It is troubling because Leon Kass is the
chair, and I would rather they not talk about IVF
at all, ASRM spokesman SeanTipton told the As-
sociated Press. At least they're only a study com-
mission and there's no clear-and-present danger
here. But we are very concerned about what the
makeup of the rest of the panel will look like.
Impact on Stem Cell Research
President Bush said he would create a bioethicscommission when he announced his decision on
federal funding of human embryonic stem cell re-
search back in August. But he gave no hint at the
time that the study group would tackle such a
broad array of bioethical issues.
The study of fertility and assisted repro-
duction issues could have a negative impact on
stem cell research, according to some experts.
Stem cell research scientists have always
maintained that they should be allowed to experi-
ment with human embryos because theyre de-stroyed anyway when couples and clinics no
longer need them.
Embryonic stem cell research requires
embryos, said one observer, a research scientist
who asked anonymity. Currently, unused em-
bryos created for use in fertility procedures in fer-
tility clinics are the source of stem cells. These un-
used embryos have been, and continue to be, rou-
tinely discarded by the clinics, unless they are do-
nated by couples for research. A huge ethical issue
here, so far hardly discussed at all, is: Should
these embryos be destroyed at all? You bet Dr.
Kass is going to take a close look at that issue.
To really clamp down on embryo re-
search, the scientist suggested, you clamp down
on the source of the embryos. I can see the panel
strongly suggesting that something be done about
excess embryos. But I have no idea what that
(Continued from page 3) something might be.
Dean Clancy
The new executive director, Dean Clancy, will
oversee the administrative functions of the coun-
cil. Clancy, 37, previously served as a senior pol-icy advisor for Rep. Dick Armey of Texas, spe-
cializing in health policy, Medicare, Social Secu-
rity, bioethical issues, and other topics. Before
joining Rep. Armey's staff in 1993, he served as a
speechwriter for Housing and Urban Development
Secretary Jack Kemp and as a staff writer for Vice
President Dan Quayle.
Council s M ission
Other tasks the president assigned the new councilinclude:
Undertaking fundamental inquiry into the hu-
man and moral significance of developments in
biomedical and behavioral science and technol-
ogy;
Exploring specific ethical and policy questions
related to these developments;
Providing a forum for a national discussion ofbioethical issues;
Facilitating a greater understanding of bioethi-
cal issues; and
Exploring possibilities for useful international
collaboration on bioethical issues.
The council will also have the power to study broader
ethical and social issues not tied to a specific technol-
ogy. These include protection of human subjects inresearch, appropriate uses of biomedical technologies,
the moral implications of biomedical technologies, and
the consequences of limiting scientific research, ac-
cording to the executive order.
The council is not required to form a single
consensus opinion to present to the president on any of
these issues. It may offer a variety of views on any(Continued on page 5)
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given topic.
The council may conduct inquiries, hold hear-
ings, and establish subcommittees, as necessary.
Contact:Dr. Leon Kass, 773-702-8571, http:/
/www.uchicago.edu
Company Creates F irst Cloned
Human Embryo
Advanced Cell Technology, Inc. (Worcester, Mass.)on November 25 announced that it had cloned ahuman embryo in a scientific advance whose purpose is
not to create a human being but to use the embryo as a
source of stem cells that wont be rejected by patients
immune systems during therapeutic transplantation.
The company published its research on human
somatic cell nuclear transfer and parthenogenesis in the
November 25 issue of theJournal of Regenerative
Medicine, noting that it had provided the first proof
that reprogrammed human cells can supply tissue for
transplantation.
Human embryonic stem (ES) cells, and other
cells derived from the inner cell mass of the preimplan-
tation embryo are totipotent, i.e., capable of forming
any cell or tissue in the human body. While numerous
human ES cell lines are now in existence, they are of
little value in human transplantation, as they would be
rejected by a patient as foreign.
Human therapeutic cloning has the potential tosolve this problem by providing cells that are an exact
genetic match for the patient.
Two Ways to Manufacture the Cell s
The companys paper reports preliminary studies on
two ways to make such cells. The first method is
parthenogenesis. In this technique an egg cell is acti-
vated without being fertilized by a sperm cell. A patient
in need of a particular cell or tissue type provides the
egg cell, the activated egg cell forms a preimplantation
embryo, and the resulting stem cells are differentiated
into the type of tissue the patient needs. The paper re-
ports success in activating egg cells in this manner to
form many-celled embryos resembling blastocysts. The
paper does not report data on stem cell isolation.
In a second series of studies, the company per-
formed somatic cell nuclear transfer (cloning) to form
preimplantation embryos. In this instance, human egg
cells were prepared by removing their DNA and adding
(Continued from page 4) the DNA from a human somatic (body) cell. The paper
reports that the somatic nuclei showed evidence of re-
programming to an embryonic state as evidenced by
pronuclear development (a type of nucleus observed
only in the fertilized egg) and by early embryonic de-
velopment to the six-cell stage. Again, the company did
not report on stem cell isolation.
Our preliminary results add to the weight ofevidence that human cell reprogramming is possible,
said Jose B. Cibelli, Ph.D., D.VM., vice president of
Research at ACT and the first author of the report.
We understand that these are early and preliminary
results, but given the importance of this emerging field
of medicine we decided to publish our results now.
The companys goal in applying cloning to hu-
man medicine is to create stem cells capable of differ-
entiating into a variety of cells, such as heart cells, neu-
rons, blood cells or islets for transplant therapies.
These are exciting preliminary results, said Robert P.Lanza, M.D., vice president of medical and scientific
development at ACT and an author of the paper. This
work sets the stage for human therapeutic cloning as a
potentially limitless source of immune-compatible cells
for tissue engineering and transplantation medicine.
Our intention is not to create cloned human beings, but
rather to make lifesaving therapies for a wide range of
human disease conditions, including diabetes, strokes,
cancer, AIDS, and neurodegenerative disorders such as
Parkinsons and Alzheimers disease.
Nevertheless, U.S. lawmakers viewed the dis-
covery with skepticism. Federal law prohibits the useof taxpayer money for the cloning of human beings but
Advanced Cell Technologies is a privately funded com-
pany and can do as it pleases.
Noting that he didnt quite understand what
ACT had accomplished, Senate Majority Leader Tom
Daschle still called the study disconcerting on Fox
News Sunday. I think it's going in the wrong direc-
tion.
I believe it will be a big debate, but at the end
of the day I don't think we're going to let the cloning of
human embryos go on, Alabama Sen. Richard Shelby,
a Republican, told NBC's Meet the Press.
Vermont Sen. Patrick Leahy agreed. I find it
very, very troubling and I think most of the Congress
would, Leahy, a Democrat, told NBC.
Congress has moved to outlaw all human cloning. A
proposed new law is under consideration by the Senate.
Scientifically, biologically, the entities we are
creating are not individuals. They're only cellular life.
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They're not human life, Michael West, chief executive
officer of ACT, told NBC's Meet the Press.
Enormous Potential
Human therapeutic cloning could be used for a host of
age-related diseases, said Michael D. West, Ph.D. thecompanys CEO and an author of the paper, if the hu-
man cells behave as animal cells have in previous stud-
ies, we may have found a means of rebuilding the lifes-
pan of cells at the same time. This would allow us to
supply young cells of any kind, identical to the patient,
that could be used to address the tidal wave of age-
related disease that will accompany the aging of the
population.
Researchers from Advanced Cell Technology
collaborated with scientists from Duncan Holly
Biomedical of Somerville, Massachusetts on the paper.The other authors are Kerrianne Cunniff of ACT, and
Ann A. Kiessling and Charlotte Richards.
Contact:Dr. Michael D. West, 508-756-1212,
http://www.advancedcell.com
Chinese Scienti sts Regenerate,
Duplicate Gastrointestinal Organs
by Cul tur ing Stem Cell s in Vitro
Chinese biologist Prof. Rongxiang Xu and his team
announced that they have successfully regenerated
and duplicated gastrointestinal organs by culturing
stem cells in vitro. Earlier, the researchers reported that
they had repaired and regenerated human skin by cul-
turing adult stem cells in vivo and in situ.
In the new experiments, tissues of gastric and
intestinal walls from mice were sampled for culture in
vitro. A specially formulated and combined life sub-
stance, known as a Gastro-Intestinal Capsule (GIC),
was added in the culture medium to promote stem cell
proliferation.
During the culture process of gastric tissues,the GIC initiated sub-mucosal cell clusters. These
cells divided progressively while cloning to form tis-
sues and continuing to cultivate until new tissues were
formed, according to the scientists. In the culturing of
intestinal tissues, cell clusters near intestinal mucosa
membranes were initiated through GIC and formed as
stem cells with a potential for indefinite cultivation.
These stem cells then differentiated into
brush border mucosal tissues, which had a function to
(Continued from page 5) absorb, as well as into secretory cells which are located
in the intestinal tract, and were persistently cultivated
to constitute new intestinal tissues.
According to the scientists, these two experi-
ments verify two main claims of Prof. Xu and his team:
1. Stomach and intestine cells and tissues,
which are two different types of organs, were success-fully duplicated.
2. The key to the necessary life substance for
cells, the smallest units of life, were discovered.
Unlocking the door to new dimensions and
possibilities in stem cell research, GIC is a unique and
exceptional cell culture medium promoter rich in nu-
trition as well as a beneficial cell-protecting agent, the
scientists said in a statement. It is regarded as the sole
life substance of its kind in the world that can success-fully initiate the repairing and regenerating of cells and
tissues.
Signif icant Value
According to the researchers, the results of their studies
coupled with the effects that GIC has on gastric and
intestinal cells have profoundly significant application
value to clinical medicine.
In the treatment of gastric diseases, GIC not
only protects the gastric wall, but also physiologically
repairs gastritis and ulcers completely, the scientistssaid. As for intestinal functions; GIC can repair in-
jured intestinal mucous membranes, and insure mu-
cosal epithelial cells to evenly absorb nutrients and en-
hance intestinal absorption functions.
The researchers said the experiments prove
that GIC completes three steps of tissue replication by
stem cells: cultivation of stem cells, linkage of various
stem cells, and tissue constitution.
It further validates the life science value of
the human mapping process of the in vivo and in situ
organ regeneration and replication by Professor
Rongxiang Xu, according to the scientists.
Experiments have explicitly shown that gastric tissues
and intestinal tissues from the embryo of mice, when
cultured in GIC, release free single cells. After continu-
ous cultivation, unicellular clonal connections formed,
finally leading to tissue constitution. This process con-
tinues for several months of culturing. As such phe-
nomenon and results can only be completed by stem
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cell development, it is actually the first time ever that
organs had completely developed in vitro in the history
of life science.
The test results also suggest that injuries to
organs initiate the potential of stem cells in vivo and in
situ, making it possible for stem cells of organs in vivo
and in situ to replicate new gastric and intestinal wallsand mucous membrane.
This discovery has advanced the international
embryonic stem cell research into its current direction
and final goal of stem cell research which is the re-
pairing, regenerating and replicating of tissue organs,
they said.
According to the scientists, the science and
technology information search agency, a subsidiary of
Chinas Science and Technology Ministry, completed
data searching and due diligence in the area of the re-
search. It found that in the last twenty years no similarreports have been published. This suggests that Profes-
sor Xus findings are original. The State Stimulant and
Sports Nutrition Testing Research Center also in-
spected the capsules contained in GIC and found no
stimulants prohibited by the International Olympic
Committee of 2000.
Contact: Prof. Rongxiang Xu via e-mail at
News Br iefs
NIH, Health and Human Services Release More
Guidance for Stem Cell Researchers
The federal Office for Human Research Protections
(U.S. Department of Health and Human Services) has
published some guidelines for Institutional Review
Boards (IRBs), investigators and sponsors considering
research activities involving human embryonic stem
cells, materials derived from them, human embryonic
germ cells from fetal tissue, or materials derived from
them.
To view the guidelines, visit http://ohrp.osophs.dhhs.gov/references/HESCGuidance.pdf.
The agency also has a list of frequently asked questions
on federal funding for embryonic stem cell research.
The questions and answers focus on applying for fund-
ing under the extended deadline, what to do if you miss
the extended deadline, prohibited areas of research, the
requirement to identify the stem cell line to be used,
(Continued from page 6) IRB review, and regulations on importing cells from
other countries.
To view the FAQs, visit http://grants.nih.gov/
grants/stem_cell_faqs.htm.
Several embryonic stem cell lines approved for federal
research funding were developed outside the United
States. Researchers who want to work with them maybe required to get permission to import them. NIH ex-
plains its policies for importing biological specimens at
http://grants.nih.gov/grants/guide/notice-files/NOT-
OD-02-103.html. Details and contact information are
given for USDA, CDC, and FDA.
Researchers Find Magic Ingredient for Neural
Stem Cells
Researchers at the Max-Planck Institute of Neurobiol-
ogy in Germany have uncovered a key molecule that,when added to astrocytes that do not normally act as
stem cells, start producing new neurons.
Recent experiments have provided strong evi-
dence that in the developing fetal brain, a subsection of
a group of cells called radial glial cells act as neural
stem cells, giving rise to neurons. Related cells in the
adult brain called astrocytes can also act as neural stem
cells.
But what gives certain radial glial cells and a
very small number of astrocytes in two discrete adult
brain areas their stem cell capabilities has been a mys-
tery.Astrocytes that naturally act as stem cells are
a very rare cell type - but if we understand more about
the differences between 'normal' astrocytes and neuro-
genic astrocytes, we could potentially use the ones
found throughout the brain for neural replacements,
says researcher Magdalena Gtz, head of the neuronal
specification group at the neurobiology institute.
Gtz and her colleagues first worked on mouse
radial glial cells, which until very recently were thought
to be simply helper cells, guiding the growth of neu-
rons in the fetal brain.
The team studied transcription factors -
molecules that regulate which genes are transcribed
and then translated into proteins. They found that ra-
dial glial cells that lacked a functional form of a tran-
scription factor called Pax6 could not generate neu-
rons. But when Pax6 was introduced into glial precur-
sor cells, these cells started to produce neurons.
The team found that the introduction of Pax6
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into mouse astrocytes had the same effect. This raises
the prospect of using normal astrocytes taken from a
patient with brain damage to make new neurons, for
use in treatment.
Finding molecular markers that indicate
whether a radial glial cell can act as a stem cell or not
will also help researchers purify samples, says Gtz.Contact: Dr. Magdalena Gtz, 49-89-85-78-
36-29, http://www.neuro.mpg.de/Neu-
ronal_Specification/
Donor Brain Stem Cells Do More Than Just Grow
Neural stem cells (NSCs) can alleviate neural degener-
ation by instructing host cells to regenerate, rather than
by maturing into neurons themselves, Harvard neurolo-
gist Evan Snyder said on November 11. In mice with
Purkinje cell (PC) degeneration, Snyder reports, NSCsmay be reconstituting the PC layer either by protecting
host cells or by stimulating a more vigorous regenera-
tive response.
We think this may be the donor cells secreting
things that change the host, Snyder said. And this
(Continued from page 7) may apply not just to NSCs but to many other types
[of stem cells]. In fact, he suggests, the new model
may explain some functional results now observed in
other stem cell experiments.
Snyder and his colleagues transplanted donor
NSCs into the cerebella of nervous (nr), purkinje-cell-
deficient (pcd) and lurcher (lc) mice with rapid degen-
eration of PCs. Transplanted NSCs dispersed broadly,but only a minority of them matured into neurons and
glial cells, the researchers say.
But when transplanted at early stages of PC
degeneration, NSCs nevertheless protected the cells
from spontaneous degeneration. When grafted into
newborn mice, the NSCs also preserved cerebellar ar-
chitecture in both PC and granule cell populations. In
such mice, motor deficiencies were reduced or absent,
the scientists report.
Contact: Dr. Evan Y. Snyder, 617-355-6070,
http://www.childrenshospital.org
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