BioE signs deal to develop new bone

A Vadnais Heights biomedical company is working on therapies using stem cells to repair bones and cartilage.

By Janet Moore, Star Tribune
Last update: May 21, 2007 – 9:30 PM

A Vadnais Heights biomedical company is a step closer to commercializing a system that uses stem cells to create new bone and cartilage -- a promising area of regenerative medicine.

On Monday, BioE Inc. and Phillips Plastics Corp., of Prescott, Wis., announced an agreement to develop stem cell therapeutics to treat diseases such as osteoporosis, fractures of the hip, spine, wrist, arm and leg as well as injured or deteriorated joints.

BioE says its system for extracting stem cells from blood in human umbilical cord -- typically discarded after birth -- can develop them into multiple cell and tissue types, including bone and cartilage.
So far, BioE's stem cells have been used largely by researchers in laboratories. But Monday's agreement with Phillips, a high-tech custom injection molder of plastic and metal products, could steer the company toward commercial applications of its technology.

Phillips is developing a platform to enhance growth of stem cells created by the BioE system.
"The idea is to marry our cells, which are very capable of making new bone, with a material that can be turned into bone," said Daniel Collins, BioE's executive vice president and chief scientific officer. That's what Phillips is providing: a porous material that's almost like a sponge. "But it's made out of the same material as bone, so our cells are able to take to that and ... become new bone."

BioE executives believe the stem cell market for orthopedic applications could exceed $3 billion in the next 10 years; now it's reportedly less than $100 million.
"We anticipate applications far beyond orthopedic," said BioE President and CEO Michael Haider. "It's just that orthopedic is what we consider the nearest-term opportunity for both companies, but it may go way beyond that."

Currently, BioE and Phillips are experimenting with their joint technology in the laboratory, but will soon will test it in animals before its use in humans.

According to the agreement with Phillips, BioE has the right to commercialize any technology developed through the partnership.

Janet Moore • 612-673-7752 • jmmoore@startribune.co

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