Cash injection to maintain edge in stem cell research

Between £650m and £820m is to be invested in stem cell research over the next 10 years - more than double the present level - to maintain the UK's competitive position in one of the mostpromising fields of biomedical science.

The report of the government's Stem Cell Initiative, published today, recommends adding £350m-£520m, depending on scientific developments, to the £300m that would be invested according to current plans. Some of the money willbe used to set up private-public partnerships with biotechnology companies to accelerate the clinical application of stem cells and to use them in drug development.

Sir John Pattison, who chaired the initiative, said yesterday: "The ultimate health and wealth gains the UK will enjoy are directly proportional to the addition investment we propose."

Gordon Brown, who commissioned the report, has accepted it in full. The government will fund its recommendations for the first two years by providing £100m for stem cell research in 2006 and 2007 - annual spending levels will increase after that as the science develops.

"Britain should be the world's number one centre for genetic and stem cell research, building on our world-leading regulatory regime in this area," the chancellor said.

The Stem Cell Initiative says there is a strong likelihood of "new and exciting discoveries" providing treatments for conditions such as Parkinson's disease, diabetes and heart failure. Although the report warns against exaggerating the short-term clinical benefits of "regenerative medicine", because some treatments might not be available for decades, it predicts more immediate applications for stem cells in drug discovery and development.

Researchers in the public and private sectors welcomed the extra funding. Michael Whitaker, chair of the Institute of Stem Cell Biology and Regenerative Medicine in Newcastle, said: "It is clear that a sustained programme of funding over several years is crucial if the UK is to maintain its position as world leader in this pioneering area. There has been considerable recent investment in California, Korea, Spain, Israel and elsewhere in stem cell research."

Newcastle is well aware of the threat, having lost Miodrag Stojkovic, its leading stem cell researcher, to the better-funded Prince Felipe Research Centre in Valencia.

"When we started work it was a theoretical risk that investment elsewhere might tempt people away," said Sir John. "When Miodrag Stojkovic went to Spain it became reality." David Macauley, chief executive of the UK Stem Cell Foundation, which is raising charitable and corporate funds to bring the benefits of research to patients, said: "I am delighted that the government has accepted Sir John's recommendations in full."

He said the outcome of the Stem Cell Initiative would help the foundation move toward its target of raising £100m; so far it has brought in £12m. The report recommends that the government should match any funds raised by the foundation for clinical and translational research.

Another recommendation is to build up the research infrastructure, including several stem cell production units and a permanent facility to house the UK Stem Cell Bank.

Peter Mountford, chief executive of Edinburgh-based Stem Cell Sciences, one of the few companies in the field, said international developments meant the initiative had come at a good time for the UK. South Korea is still reeling from last week's public apology by Hwang Woo-suk, its leading stem cell researcher, for transgressing international ethical standards of egg donation. More importantly, US scientists are hamstrung by the Bush administration's restrictions on federally funded stem cell research and by the failure so far of California's $3bn (£1.7bn) initiative to get started in the face of legal challenges.

Speaking from the US, Mr Mountford said: "There is a real mood of frustration in the research hubs on the east and west coast. This can only help the UK to build a leading global position in stem cell research."

The Bio Industry Association, representing the biotechnology sector, welcomed the government's move. "As acknowledged in the report, increased public funding will be key in realising its potential benefits," it said.

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