A third stem-cell research company is in the works in Madison, spearheaded by two big names in University of Wisconsin research.

Former executive director of the WiCell Research Institute Beth Donley and UW stem-cell researcher Gabriela Cezar are co-founders of Stemina Biomarker Discovery, scheduled to open in early 2007.

"We'd like to have a physical facility up and running by the first quarter of next year, but that may be an optimistic schedule," Donley said.

Donley said she and Cezar had been discussing a new company over the last six to nine months. They were not planning on beginning the project so soon, Donley added, but decided now was the right time because the funding for the project is available.

Several venture capitalists have shown interest in investing in Stemina Biomarker Discovery, and the entrepreneurs will be seeking federal grants as well, according to Donley.

Donley said she is meeting next week with Gov. Jim Doyle — who in April allocated $5 million to stem-cell companies –and the project will likely receive money from the state.

Carl Gulbrandsen, managing director of the Wisconsin Alumni Research Foundation, said when Donley left her position at WiCell, he knew her interest was to move to the private sector.

According to Gulbrandsen, leaving non-profit companies to start companies in the private sector is becoming more common.

"One attraction is the satisfaction of having been part of something from conception," Gulbrandsen said. "It goes the other way, too; we have people that [work] in the private sector and want to go to the non-for-profit sector … so it becomes kind of a two-way street."

Donley said after working at WiCell for more than eight years, she felt ready to take on an entrepreneurial position. Donley enjoyed working with WARF and would consider working there again one day.

"WARF is a large organization associated with the university; it tends to not be quite as entrepreneurial as a startup company," Donley said. "The opportunity to run something of my own and shape it the way I think is appropriate is part of what made [Stemina Biomarker Discovery] very attractive."

Gulbrandsen said one of WARF's goals is to make sure technology is used to benefit the community, and the people at WARF are enthusiastic about the new stem-cell company.

"We're anxious to see this area of technology really start to develop more commercially [nearby]," Gulbrandsen said. "We're enthusiastic about it, we think it's a good thing to have happen."

Cellular Dynamics International and Stem Cell Products are the other two stem cell companies in Madison. UW biology professor James Thomson, the first person to successfully isolate human embryonic stem cells, collaborated on both of those projects.

Donley and Cezar's company will be the first stem-cell company in Madison not to involve Thomson.

Donley said Stemina Biomarker Discovery would have a different research focus than the other two because it will focus mostly on metabolomics, which is Cezar's area of expertise.

Donley defined metabolomics as "the study of the metabolism of the cells."

"I have a strong relationship with Dr. Thomson," Donley said. "He may have an advisory role, but he is not a founder."