ES Cell International teams up with PPL

Melbourne-based stem cell researcher ES Cell International has confirmed it is in talks with Scottish group PPL Therapeutics over the purchase of complementary research.

PPL, the company behind the creation of world-famous Dolly the sheep, is reportedly planning to sell its early stage work into stem cells and diabetes to pacify claims that it lacks focus.

The cash-strapped company has already lost research director Dr Alan Colman to ES Cell's Singapore arm, where he has taken a role as the company's chief scientific officer.

But a report in British newspaper The Guardian has suggested PPL may be forced to concentrate on late-stage protein work to quell shareholder concern.

A spokeswoman for ES Cell today confirmed the company was in talks with PPL over the stem cells and diabetes area of its research, but could reveal no more.

It is not clear how far discussions between the parties have progressed.

The newspaper reported that separate negotiations were underway with possible buyers for PPL's US-based xenotransplantation business, which was exploring ways of growing human organs in pigs.

It said the company also hoped to raise much-needed cash by using excess capacity in its factory to produce proteins for other drug companies.

PPL's core business has been in breeding genetically altered animals that are able to produce therapeutic proteins in their milk.

The company has a base in New Zealand where it has a high security farm containing about 1000 sheep, many of which are genetically altered.

PPL chief executive Geoff Cook said the company had experienced a sea change in its strategic focus.

"While historically we were spreading our resources across early-stage research, we're now fairly and squarely behind our late-stage protein work," Cook said.