Baxter moves from drips to stem cell research

By Debra Sherman

CHICAGO, April 18 (Reuters) - Baxter International Inc. (BAX.N), a pioneer in intravenous drips, is quietly entering the complex, but promising field of stem cell research.

Though Baxter Chief Executive Robert Parkinson characterizes the trial as a "wild card," the ability to coax stem cells to grow into healthy heart tissue represents a $1 billion market opportunity that could transform the 75-year-old hospital products company.

A stem cell is a kind of master cell for the body, capable of differentiating into a broad range of specialized cell types. Scientists are hoping to use the cells to repair tissue damaged by disease or injury.

Dr. Douglas Losordo, director of cardiovascular research and regenerative medicine at Northwestern University, is leading a Baxter-funded clinical trial that aims to use stem cells to repair heart tissue damaged by a lack of oxygen.

His research sidesteps political controversy surrounding embryonic stem cells -- which are derived from human embryos -- by instead utilizing the patient's own stem cells.

"There are stem cells all over the body. There's a lot of enthusiasm because they're like a repair kit for the body -- pre-installed by the manufacturer," Losordo said in an interview. "These cells are like an injury response unit -- they appear on the scene when there's trouble."

Patients participating in Losordo's trial have previously failed to respond to surgery and drugs. They are considered the sickest heart patients and experience chest pain from even the slightest physical exertion.

The goal of the trial is relief of angina, or chest pain caused by a lack of blood flow to the heart.

Losordo has 70 patients signed up for the study and hopes to complete enrollment, with about 150 patients, by year-end.

The treatment under investigation, known as autologous stem cell therapy, involves harvesting stem cells from the patient's own bone marrow. A drug, known as G-CSF, is given to stimulate the bone marrow to produce more stem cells.

Blood is then drawn and blood components are separated. Everything but the mononuclear cells, which include stem cells known as CD34 cells, are put back into the patient. Baxter's cell separation technology isolates the CD34 cells using tiny magnetic beads.

Baxter's technology has been used for years by oncologists seeking to replace CD34 cells -- antigens, which stimulate an immune response -- destroyed by blood cancer treatments.

Losordo said when researchers compared using CD34 cells that were isolated with those that were not separated from other blood components, they found the latter were associated with more internal bleeding at the site.

The biggest risk associated with the therapy is blood clotting, a response to G-CSF, the drug that is given when the CD34 cells are being mobilized. Anti-thrombotic drugs are given during cell collection to prevent clots, Losordo said.

Another serious, albeit small, risk is poking a hole in the heart should the cells be administered in the wrong place. Other risks, including infection and arrhythmia, are also considered small, he added.

Another aspect of this trial that makes it unique, said Baxter's Chief Scientific Officer Dr. Norbert Riedel, is that a high concentration of cells are injected directly to the site via a catheter. Other experiments using adult stem cells simply introduce them into the blood steam, hoping they'll find their way to the injured or damaged tissue.

Embryonic stem cells are widely considered to have the most promise in their ability to differentiate; but due to the political controversy over their use and lack of government funding, scientists have turned their attention to adult stem cells.

"All the studies we've done show these (CD34) cells can improve heart function. If embryonic stem cells can ever do this trick, it'll be about 10 years out. Adult stem cells can do this trick now," Riedel said.

((Reporting by Debra Sherman, editing by Gerald E. McCormick; Reuters Messaging: debra.sherman.reuters.com@reuters.net; debra.sherman@reuters.com, 1-312-408-8134)) Keywords: BAXTER STEMCELL/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN13440037