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Stem cell firm to open in NJ after getting $589K in grants

By TOM HESTER Jr. | Associated Press Writer

May 1, 2008

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PISCATAWAY, N.J. - A California-based stem cell research company will get $589,000 in state grants to open a New Jersey facility and create 12 new jobs, a plan questioned by those worried about the governor's proposed budget cuts.

"It does seem questionable to be writing checks to companies that are going to hire 12 people when you're cutting higher education and can't pay for transportation," said Jon Shure, president of the liberal-leaning New Jersey Policy Perspective that has criticized taxpayer-funded business incentives and tax breaks.

Democratic Gov. Jon S. Corzine, who joined officials from StemCyte and Rutgers University on Thursday to announce StemCyte's plan to open a facility in Ewing, defended the incentives.

"The addition of StemCyte to our portfolio of companies represents an important economic investment that brings with it the promise of discovery and cures for some of our most devastating diseases and injuries," Corzine said as he toured a Rutgers stem cell lab. "I am proud to welcome StemCyte to the Garden State."

The Ewing facility will house executive management and therapeutics team members, and serve as an East Coast base for the company.

StemCyte and Rutgers recently entered into a research agreement for a spinal cord injury therapy.

The therapy developed by Rutgers professor Wise Young uses umbilical cord blood stem cells from StemCyte, which boasts one of the world's largest cord blood stem cell banks.

The Covina, Calif., company also has operations in Taiwan and is developing a unit in India.

The New Jersey Economic Development Authority said the company was approved for the grant under a state business employment incentive program.

The program is costing the state $152 million this fiscal year. Corzine has proposed increasing it 18 percent next fiscal year, making it one of the few proposed spending increases in his budget plan.

"The proposed state budget cuts funding for higher education and the transportation trust fund is on verge the bankruptcy," Shure said. "It would seem that investing in higher education and transportation are better ways to build the economy than writing checks to businesses."

But Kenneth J. Giacin, the StemCyte chairman, said the state's "collaborative research environment, their commitment to stem cell therapeutics and their reputation as a leader in the life science industry were important elements in our decision to move to the state."

He said the state's "generous" grant was among the considerations that helped it decide to move to New Jersey.

StemCyte's move to New Jersey comes even though voters in November rejected borrowing $450 million to provide stem cell research grants for 10 years. The measure was backed by Corzine but was voted down amid concerns about mounting state debt and high taxes.

"This confirms that the cures of the future lie in non-embryonic stem cell research and do not require funding by the overburdened taxpayer in order to move forward," said Marie Tasy of New Jersey Right-to-Life, which opposes stem cell research that destroys embryos.

But Corzine said he hopes voters will soon get another chance to approve such funding.

"I intend to revisit this issue," Corzine said, but he added, "We haven't crossed that bridge yet."

Before November's vote, lawmakers and Corzine approved $270 million to build five stem cell research facilities in the state. Corzine said he's still made no decision on how that money would be spent.

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On the Net:

StemCyte: http://www.stemcyteinc.com/

Rutgers stem cell project: http://keck.rutgers.edu/center/center.html

New Jersey Economic Development Authority: http://www.njeda.com/web/default.aspx