San Francisco (Reuters) Apr 24 - A California judge on Friday opened the way for the state to begin funding $3 billion of stem-cell research, ruling the controversial voter-approved California Institute for Regenerative Medicine is constitutional.

But opponents can still appeal the decision.

California has been at the center of the stem-cell debate since voters in 2004 approved using state funds for research. The debate pits groups that morally oppose using fertilized human eggs for study against others who see stem cells as key to curing many diseases such as Alzheimer's and diabetes.

US President, George W. Bush, in August 2001 restricted federal funding of embryonic stem cell research to existing batches of the cells, which are taken from days-old embryos and are able to be turned into all types of human tissues.
Academic researchers and biotechnology companies have complained that a lack of U.S. funding for stem cells has stymied research in the field.

California, the most populous US state, has attracted many biotechnology companies since the 2004 vote approving state funding, but companies have been frustrated while the issue was tied up in court.

"This should enable us to recruit the kind of personnel from around the world who are highly qualified yet are unable to work with stem cells in their home facilities," Dr. Irving Weissman, director of Stanford's institute for stem cell biology, said in a statement.

California voters approved the institute's formation by passing a November 2004 ballot measure. It allows the institute to sell up to $3 billion in state debt to fund stem-cell research that many scientists believe will lead to breakthroughs for treating various illnesses and ailments.

(edited statement)
Reuters Health Information 2006. © 2006 Reuters Ltd.