I agree that use of ESCs for drug discovery and testing is a short-term route to profitability from the use of ESCs. The viability of SCS’s particular model (ever-changing as it is) remains to be seen as they have now suspended trading of their stock in anticipation of some continued shift in their rapidly-evolving business plan. They did just sign a deal with Pfizer so that does bode well for them…

The other way to make money in the space is to be a “picks-and-shovels” provider. So companies like Invitrogen, SIAL, Miltenyi, Thermo Fisher, Stem Cell Technologies, BD, GE etc are all investing in and generating revenues from selling tools and reagents.

As we have discussed there are a lot of non-ESC stem cell or cell therapy plays out there using auto or allo adult cells (stem cells or otherwise). Approx 30 phase III or pivotal industry-sponsored clinical trials currently underway using a cell-based therapy. Dozens of cell-based therapies already available commercially (largely cartilage and/or skin repair but also several others). Pfizer has made a modest investment already in one such early-stage model using retinal epithelial progenitor cells.

–Lee
http://www.celltherapygroup.com