EHSI applauds Sen. Specter's support for Stem Cell Research Advancement Act

Sep 15 2010

Emerging Healthcare Solutions, Inc. (PinkSheets:EHSI) cheered Sen. Arlen Specter's (D-Penn.) statement of support for the Stem Cell Research Advancement Act on Monday.

The bill would codify an executive order issued last year by the President advancing stem cell research in the U.S. Specter's legislation is a response to a preliminary injunction issued last month by U.S. District Court Judge Royce Lamberth, who argued that current research violates federal law on using federal money on work that harms human embryos, including some stem-cell research. An appeals court temporarily blocked that ruling last week.

The Stem Cell Research Advancement Act passed Congress twice—in 2005 and again in 2007—only to be vetoed both times by President Bush. The bill was re-introduced in February 2009, but stalled after President Obama expanded federal stem-cell funding via executive order.

EHSI is keeping a close eye on the bill as well as the appeal of Lamberth's ruling. In March, the company signed a profit participation deal with Celulas Genetica, a biotech firm dedicated to developing radically new medical solutions using adult stem cell research.

Currently, Celulas Genetica strives to provide support to researchers and universities in Central and South America where there are fewer restrictions on stem-cell research. Stem cell cures could produce billions of dollars of revenue for the companies that develop these cures and bring them to market, making federal support for stem-cell research in the U.S. crucial to maintaining the nation's competitive edge. If the Stem Cell Research Advancement Act is signed into law, the domestic stem-cell research industry could well explode with activity.

EHSI and its partners are developing the technology to compete in the stem-cell research industry alongside ViaCell (NASDAQ: VIAC), a Cambridge Massachusetts company backed by biotech giant Amgen (NASDAQ: AMGN) and Genzyme (NASDAQ: GENZ). The biotechnology sector also includes Biogen Idec (NASDAQ: BIIB).