As part of his directive to provide $5 million in state funding to companies involved with stem cell research, Governor Jim Doyle today announced funding for Stem Cell Products, Inc. The funding will support the company's commercial research and development of processes to make safe, effective blood products from embryonic stem cells. The company was founded, in part, by UW-Madison biology Professor James Thomson who isolated the first human embryonic stem cell in 1998 - making Wisconsin the birthplace of stem cell research.
"This company is an example of the enormous potential of embryonic stem cell research not only to heal illness but to create new, high paying jobs in Wisconsin," Governor Doyle said. "As Governor, I'll continue fighting to make sure that top researchers and embryonic stem cell companies are welcomed with open arms and have the strong support of the state. Their work will save lives, transform our economy and open the doors to the jobs of the future."
Stem Cell Products, Inc. (SCP), founded by UW researchers James Thomson, Igor Slukvin and Dong Chen with others, will receive $750,000 in loans and a $250,000 grant from the Wisconsin Department of Commerce. The company has also been designated as a Qualified New Business Venture for investor tax credits under the Angel Investor and Venture Fund Tax Credit Programs.
The company will initially concentrate on process improvements in the manufacture and delivery of embryonic stem cell derived red blood cells and platelets. The company intends to develop techniques to permit industrial-scale manufacturing of embryonic stem cell derived blood products for human clinical use.
Platelets are in short supply and are needed by the U.S. military for transfusions into soldiers wounded in battle. The military is interested in the technology that Stem Cell Products is developing that would make platelets available to combat theater area hospitals. Currently, the military flies wounded soldiers from Iraq to hospitals in Germany so they can have access to platelets.
“Blood platelets are a critical, lifesaving medical resource, but they are in short supply. Using advances from embryonic stem cell research, this company could revolutionize the process and help save lives,” Doyle added. “U.S. soldiers serving in combat could be among the first to benefit. The U.S. military has a significant need for platelets for soldiers who have been wounded. The technology being developed by this company could make platelets more available at military hospitals in combat zones.”
“We are pleased and honored to be the recipient of this grant and loan, and we thank the State of Wisconsin and Governor Doyle for the confidence placed in stem cell technology and SCP,” said Nick Seay, Senior Vice President for SCP. “The scientist founders of our company have demonstrated that important components of the blood system can be produced from human embryonic stem cells in culture. Now our company is working hard is to scale up these processes to supply blood products for human health.”
Governor Doyle also met with Dan and Chris Rotert and their 13-year old son Zack, who was diagnosed with diabetes one year ago. Zack tests his blood sugar 8 times a day and takes about 6 shots of insulin a day. Zack will be insulin dependent until a cure for diabetes is found.
The Governor also vowed to continue to veto any legislation that makes its way to his desk that would be harmful to embryonic stem cell research in Wisconsin. In 2005, Governor Doyle vetoed attempts by the Wisconsin State Legislature to criminalize the most promising techniques used in this research.
Over the last three years, Governor Doyle has vastly expanded the state’s investment in this critical field and set a goal that the state should capture 10% of the stem cell market by 2015. He also launched a $750 million initiative to develop stem cell research and biotechnology in Wisconsin. The centerpiece of this effort is the planned construction of the Institutes for Discovery in Madison.
In September, Governor Doyle announced a historic stem cell research partnership agreement that will pave the way for thousands of stem cell research jobs in Wisconsin. The Governor also announced new state financial incentives to help lure companies to our state, and help achieve his goal of capturing 10 percent of the stem cell market by 2015.
Specifically, the Doyle administration has reached an agreement with the Wisconsin Alumni Research Foundation (WARF), which holds patents and royalty rights on some of the most promising stem cell lines in the world. Under this agreement, all companies conducting research at non-profit and academic institutions located in Wisconsin will receive a free non-exclusive research license under the stem cell patents held by WARF for that sponsored research. In other words, they will not have to pay royalty fees to WARF for that research that would be required if the research was conducted in another state. The agreement will give the state a significant competitive advantage over California and other states.
Experts predict that the market for stem cell products could reach $10 billion over the next ten years, translating into more than 100,000 jobs. In April, Governor Doyle set out to capture 10 percent of that market to ensure Wisconsin keeps its status as the leader and pioneer in stem cell research and development, and add tens of thousands high-end biotechnology jobs.
Currently, Wisconsin has a biotechnology workforce of 30,000 that generates nearly $8 billion for the economy.
