ViaCell, Inc. and Genzyme Corporation have entered into a collaboration related to diabetes. Over the next 18 months Genzyme will conduct research to improve production and characterization of islet stem cells, and to undertake preclinical proof-of-concept studies for the transplantation of adult islet stem cells derived from donated pancreatic tissue. ViaCell will work with Genzyme and conduct complementary preclinical research. No financial terms of the agreement were announced.

ViaCell has been issued US Patent No. 6,866,843 entitled, "Method of Transplanting in a Mammal and Treating Diabetes Mellitus by Administering a Pseudo-Islet Like Aggregate Differentiated from a Nestin- Positive Pancreatic Stem Cell" recently. This patent, exclusively licensed from the Massachusetts General Hospital (MGH) in Boston, broadly covers methods for the treatment of type I insulin-dependent diabetes mellitus and other conditions using nestin-positive islet derived progenitor cells (NIPs), which can be expanded and differentiated into pancreatic islet cells, i.e., insulin- producing beta cells.

"Our collaboration that we entered into with Genzyme in December 2004 and the patent issuance are two important milestones for ViaCell's pioneering program in diabetes," Marc Beer, CEO of ViaCell said.

Georges Gemayel, executive vice president at Genzyme, commented, "This agreement represents a natural evolution of our four-year relationship with ViaCell. ViaCell has an exciting platform in stem cell therapy, and we look forward to applying our expertise to the preclinical development of this programme."

ViaCell's diabetes program uses nestin-positive pancreatic stem cells, and, to date, the Company has successfully expanded and differentiated these cells and demonstrated their ability to produce insulin, the release stated.