Biotech Company Regeneus Under Fire For Saying AFL Approved Stem Cell Treatment, Claims Made to Patients

In August, Sydney-based biotech company Regeneus, which raised $12 million by listing on the stock market last year, put out a press release headed "ASX Announcement" which said the AFL "approved" the use of its liposuction-based stem cell procedure for injured players.

But the ABC's 7.30 program has obtained a letter of complaint written by a group of Australia's leading stem cell scientists, alleging the company withheld information about its procedure's efficacy in a price-sensitive announcement to the market.

Sports physician and stem cell researcher Dr Mark Young is concerned about Regeneus' claims.

"I think we're all concerned that patients are being given treatments where there's no evidence of benefit and they're paying an awful lot of money for it," he told 7.30.

Regeneus has had much fanfare for its product, which costs $10,000 per treatment.

Its announcement said an independent clinical trial had demonstrated the procedure "reduces pain and halts cartilage degeneration in arthritic joints".

However, the complaint letter obtained by 7.30 points out the statement left out some key information.

"It is misleading because the control (placebo) group...