The bad news was that Sen. John Kerry, who had promised to lift restrictions on stem cell research imposed by President George Bush, lost. The good news was that California passed a ballot initiative authorizing $3 billion over 10 years for stem cell research.
It wasn’t an even split, however. Kerry’s defeat and the loss of any hope that he would lift federal sanctions hammered some of the leading companies in this controversial field.
Stem Cells Controversial
Human embryonic stem cell research is controversial because it destroys embryos and some feel that is the same as taking a human life.California, led by movie star turned governor Arnold Schwarzenegger, is betting that stem cell research and the biotechnology associated with it will be the growth industry of this decade.
The promises, yet unrealized, of the benefits of stem cell research seem too good to be true. Human embryo stem cells have the ability grow into any cell in the body.
Proponents believe that human embryonic stem cell research could lead to cures and treatment for diseases and conditions ranging from Alzheimer’s disease to paralysis.
Stem Cell Research
President Bush clamped restrictions on research in the area that has severely slowed the expansion of knowledge, according to industry and academic insiders.There are still companies involved in stem cell research. Some are involved in researching stem cells that come from sources other than embryos. These stem cells do not have the same universal capabilities as embryonic stem cells; however, they do hold some promise in specific applications.
Here are some of the companies involved in stem cell research:
Human embryonic stem cell research remains controversial. It faces moral/ethic and legal obstacles that will not easily be overcome.
What Should Investors do?
How should investors approach this new industry?First, if you have moral/ethical objections to the use of human embryos in the research, you should not invest in this industry or any business that conflicts with your core values. If you abandon your core values for a quick buck, your values aren’t worth very much.
Secondly, you should acknowledge this technology may be years from producing commercial products. This is not cutting edge, this is bleeding edge.
Thirdly, picking winners now is very difficult. Everyone wants to pick the next Microsoft or Apple in its infancy, however if you look back at the tech boom, for every survivor there are 500 companies that don’t exist anymore.
