One of the biggest impacts of the new administration could be in stem cell research, according to Laura Cadden. Support for the use of embryonic stem cells would open a whole world of opportunity for specialist biotech firms. Laura picks 5 small-cap biotech stocks that would make huge gains on new stem cell legislation.

This from Today’s Financial News:

The theoretical benefits of stem cell therapy could have a revolutionary effect on biotechnology and medicine.

Stem cell technology could create a renewable source of specifically differentiated cells to replace and regenerate cells and tissues damaged by conditions such as heart disease, Alzheimer’s, diabetes, spinal cord injury, Parkinson’s etc…

It could provide tools for the identification and (hopefully) prevention of the causes of abnormal cell division that lead to birth defects and cancer.

And it could change the way we test new medications entirely.

Adult vs. embryonic stem cells

As a general rule, adult stem cells can only be relied upon to divide and replenish into cell types of their original tissue. This is fine in situations where a patient’s own cells can be used and such treatment thereby avoids immune rejection.

Embryonic stem cells, on the other hand, can develop into any and all cell types. And they are much easier to grow in culture as compared to adult stem cells.

What does this mean for stem cell biotech companies?

Most of the smaller American companies engaged in stem cell research have had to focus on a specific adult stem cell for narrow applications because of limitations to Federal funding for new stem cell cultures.

For example…

StemCells, Inc. (NASDAQ:STEM), is currently focused on human neural stem cell and human liver engrafting cells.

Stem Cell Therapeutics Corp. (CVE:SSS) and BrainStorm Cell Therapeutics (OTC:BCLI) take cells from patients’ own bone marrow in order to treat, Parkinson’s, ALS, spinal cord injury, etc.

Transitions Therapeutics Inc. (NASDAQ:TTHI) and Ixion Biotechnology, Inc. focus on using islet beta cells in the pancreas to treat diabetes.

The addition of embryonic stem cells to genetic therapy has the potential to revolutionize the revolutionary.

Imagine… rather than focusing all their money and time on one specific type of cell, they could apply their science to cells affecting areas throughout the body.

These unspecified embryonic cells can (again, in theory) be specialized to fix whatever ails you, once the science catches up.

The tiny biotech firms would no longer have to rely on qualified adult donors (think of all the restrictions the Red Cross now has regarding acceptable blood donors!).

And with the relative ease of embryonic stem cell culture proliferation, experimentation can reach new levels.

Obama Administration to support stem cell research

President-elect Barrack Obama has clearly stated his opinion, “ … we must all work together to expand federal funding of stem cell research and continue moving forward in our fight against disease by advancing our knowledge through science and medicine.”

And that could mean lower costs and higher ROI for these small biotech companies (many of which are trading under $2 today!).

Source: New administration could mean advances — and profits — for U.S. stem cell biotech companies