The world’s best-known company dealing in embryonic stem cells may have to close its doors. Advanced Cell Technology is a Massachusetts company which claimed in 2001 that it had cloned human embryos. That set off a firestorm of controversy. Since then, it has developed several innovative techniques for dealing with human embryonic stem cells, and has tried to clone extinct species. Its scientist have often been quoted in the press and in scientific journals about the potential of embryo research.

However, in a terse announcement to the Securities and Exchange commission, it said that it may have to shut up shop if it can't obtain additional funding by July 31. It has US$17 million in current liabilities, but only $1 million in cash and other current assets. It could even be forced to file for bankruptcy.

One problem with ACT was its CEO’s reputation as a publicity hound. When Michael West announced that ACT had cloned a human embryo, he was given a special section in Scientific American, appeared on Meet the Press and testified before Congress. But it turns out that the claim, even if true, was ultimately a failure. The embryo was impaired. Now West has left the company and is suing for UD$26,250 in unpaid consulting fees, plus interest and legal fees.

The problem also lies with the concept of therapeutic cloning. With no results to show for a lot of cash burned, investors are less than enthusiastic. Recent advances in adult stem cells, an investment banker told The Scientist, such as Shinya Yamanaka’s induced pluripotent stem cells, have pointed investors in a different direction. "We've had advances in adult stem cells and [FDA] approvals. Where do you think Wall Street money is going to go?" he asked. ~ Boston Globe, July 17; The Scientist, July 23