Claim Of Stem-Cell Breakthrough Attracts Scrutiny

A company that last week claimed a breakthrough in creating stem cells without harming embryos is coming under scrutiny for the accuracy of its statements, renewing questions about the credibility of stem-cell science.

The stock of the company, Advanced Cell Technology Inc., Alameda, Calif.,soared after it issued a news release saying it had created embryonic stem cells "using an approach that does not harm embryos." The method, which appeared to short-circuit ethical concerns raised by the Bush administration over stem-cell research, was widely reported in the media. More at Drug Pipeline

Yesterday, following concerns raised by critics, Advanced Cell confirmed that none of the embryos used in its experiments, published by the journal Nature, had actually survived the process. The embryos' failure to survive wasn't previously made clear by the company, and critics are now charging the company misled the public and investors.

William M. Caldwell, Advanced Cell's CEO, said its company's claims were accurate because its method of removing individual cells from embryos is used in a different field -- diagnostic testing -- without harming embryos. Therefore, in principle, he said, it could also be used to create stem cells without harming embryos.

"We did not put out anything misleading," said Mr. Caldwell, whose company announced a financing round last week to coincide with the attention created by its paper. Robert Stanislaro, an assistant vice president at Financial Dynamics, a public-relations firm with headquarters in New York and London, who said he wrote and sent the release with ACT's approval, also defended the wording, saying it was "not at all" misleading. "Technically, the embryos were disposed of," Mr. Stanislaro added.

The British journal Nature, which published the paper, added to the confusion last week by issuing a news release saying ACT had created stem cells "while leaving the embryo intact." The journal, which plays a central role in vetting and publicizing important scientific research, issued a correction to its release two days later.

Ruth Francis, a Nature spokeswoman, blamed the error on short staffing, saying editors were unavailable, and "we ended up with communication problems." By then, the finding already had been widely reported. Advanced Cell, a tiny company that has kept investor and public interest with a series of striking reports, stoked media interest in its results by saying the breakthrough could profoundly change stem-cell debate. It "takes away the president's last excuse to oppose the research," Robert Lanza, M.D., vice president of research and scientific development at ACT, told Reuters.

The announcement Aug. 23 sparked a nearly fourfold increase in the price of Advanced Cell Technology's shares from the previous day's close. Since then the company's share price has steadily dropped. Yesterday, the company's shares fell 17 cents, or 22%, to 61 cents in over-the-counter trading.