Stem cell production facility for Melbourne

Embryonic stem cell research company ES Cell International has received a Victorian government infrastructure grant to set up a stem cell production facility in Melbourne.

Announcing the Science, Technology and Innovation (STI) grant, worth up to $250,000, Innovation Minister John Brumby said the facility would help the company meet world research demands for ES cells.

"This is a fantastic research area that holds great promise for the treatment of major illnesses such as Alzheimer's and Parkinson's," Brumby said.

"The Bracks Government is strongly backing our biotechnology sector and Victoria is at the forefront of this stem cell technology, where the estimated market for cell therapies is expected to grow to $US71 billion by 2010."

The new facility is to be located within the new Baker Medical Research Institute at the Alfred Hospital's medical research and education precinct.

Brumby said a grant awarded in this controversial field would help alleviate uncertainty still surrounding stem cell research.

"The Council of Australian Governments meeting in early April was a major step towards State and Federal government cooperation in this research area," he said.

"This grant sends a positive message to our research community that we value their work, we want to guarantee secure jobs for our leading scientists, and that our government is serious about creating a world-class industry that will benefit all Victorians."

He said previous STI grant recipients involved in stem cell research have included Neurosciences Victoria, the Monash Research Cluster for Biomedicine, and the Victorian Bioinformatics Consortium - all of whom were currently associated with the short-listed Stem Cells and Tissue Repair Biotechnology Centre of Excellence bid.

ES Cell's grant win comes less than a fortnight after the National Institutes of Health in the United States announced it would source ES cells from the Australian company.

The company, which has operations in Melbourne, Singapore, Israel, and The Netherlands, is focused on using the cells in transplantation medicine and for discovery of genes and factors controlling differentiation of ES cells.

Chief executive officer Robert Klupacs said he was pleased the state government had shown support for stem cell research through the grant.

"The grant will be used by ES Cell International to develop infrastructure and employ Victorians to meet the demand for embryonic stem cells around the world, while continuing its focus on the development of therapeutic products."