Well, it’s September and the summer is winding down. Despite the fact that I’m sure everyone is distracted by the thought of a long weekend coming up, let’s get to the biotech news:

NEW STEM CELL TREATMENT BEING USED BY PATIENTS TO AVOID HIP REPLACEMENTS – A new treatment is being pioneered by doctors in Southampton England, where a patient’s damaged bones are repaired using their own stem cells. Six patients have so far received the treatment, with only one failure. After the procedure, many patients found they could walk normally again without any pain and without the need for hip replacement surgery. The Telegraph reports:

Prof Richard Oreffo, of Southampton University, said he hoped to improve the technique even further by replacing donated bone with an artificial material which used chemicals that helped stem cells grow.

“Bone is a living vibrant tissue. These stem cells generate new tissue and drive new blood vessel formation to bring in nutrients,” he said.

“Just as people need cornflakes and sugar in the morning, so cells need nutrients to grow and survive – and that is what is so important here.

NY COMMITS $20M TO STEM-CELL RESEARCH – In other stem cell news, Gov. David Paterson of New York announced that the state planned to invest $20.4 million in stem-cell research. Business First reports:

Gov. David Paterson announced that $5.4 million will be earmarked to recruit research fellows to research institutions in New York. The remaining $15.4 million will be used to establish “multi-institutional research facilities” that will be shared by researchers from across the state.

“Investment in stem cell research is part of our vision to make New York a global leader in the new economy,” Paterson said.

OPINION: ARE BIOTECH’S TOUGH TIMES OVER? – John Carroll, Editor-in-Chief of Fierce Biotech writes an interesting analysis of the biotech industry and his predictions about a possible turnaround already in progress.

Signals Magazine, an online pub which tracks biotech trends, concluded that in the first half of this year, “biotech and specialty pharma firms raised more than $8.3 billion from all sources (excluding revenues and payments from corporate partners).” In the first half of 2008, that figure was $5.9 billion. Public offerings ginned $1.2 billion, up 78 percent. Alternate financing routes, which includes private placements, soared 75 percent to $4.8 billion.

That’s hard evidence that the green shoots are appearing everywhere. Of course, if some of the bears are right and we’re headed into a second recessionary shock, it’s the tender plants that will get hit the hardest. Still, when I see more billions flowing into the industry, it’s reasonable to conclude that the worst may well be over. It’s been a heck of a storm. Something to tell the grandkids.

CONVERTING WASTEWATER TO BIOPLASTIC – Midcromidas, Inc. has developed a strain of microbes that can convert the carbon in wastewater into PHA (polyhydroxylalkanoate), a high performance plastic. PHA biodegrades quickly in compost piles and landfills, but otherwise it behaves the same or better than conventional petroleum-based plastic. Reuters reports:

Micromidas takes the wastewater feedstock ball and runs with it, noting that petroleum price spikes have contributed to devastating volatility in plastics manufacturing. In contrast, municipal wastewater virtually guarantees a steady supply of feedstock rich in carbon from human waste. Aside from the potential for long term price stability and potential for managing global warming through carbon sequestration, the many advantages of wastewater-to-bioplastics over petroleum include easing pressure on landfills, converting a municipal waste disposal liability into a marketable asset, reducing the amount of petroleum-based plastic in the waste stream, and virtually eliminating environmental disasters related to oil spills and accidents. Add the logistical and job-creation advantages of siting bioplastic manufacturing facilities near the feedstock source, and it’s a no-brainer.