Is There a Stem Cell Ownership Monopoly?

ByABC News
August 18, 2001, 8:55 PM

Aug. 18 -- Geron, a California Bio-tech company made a shrewd investment back in 1995. Geron paid more than $1 million to support a startling discovery at the University of Wisconsin isolating the first embryonic stem cell.

"Remember that Geron funded the research when the federal government wasn't willing to do that," said Rebecca Eisenberg, patent law professor at the University of Michigan.

On Aug. 9, the federal government dramatically changed course.

"I have concluded that we should allow federal funds to be used for research on these existing stem cell lines," President Bush on his controversial stem cell decision.

The University of Wisconsin now holds the patent on how stem cells are created and with Geron, can make patent claims on all of the existing stem cell lines the President talked about. Does that make them the big winners in any future research?

"No one has called us and said 'we hit the jackpot,'" said Carl Gulbrandsen, managing director of Warf University of Wisconsin. "People have called up and said to me, 'you are doing a good job.'"

But some scientists are saying they did hit the jackpot. With control of the only stem cells approved for federal research dollars, it is a monopoly that could limit other scientists' research.

"What the people are fighting over is who is going to control the future discoveries that are made through access to these early research tools," said Eisenberg.

The future of stem cell research promises a cure for diseases such as alzheimers and provide replacement parts for hearts and kidneys and the liver. The stakes and future profits could be high.

"There are no restrictions on the research and there's a one-time only fee of $5,000," Gulbrandsen said.

Scientists are already working on the approved stem cells. They are free to research and publish anything they find. But if one of them discovers a cure for say, Parkinson's disease and then wants to market the breakthrough, Geron and the University of Wisconsin has a say over who profits.