Stem Cell Sciences, the pioneering Edinburgh University spin-out, yesterday said it had signed a deal with US-based Myelin Repair Foundation that will boost efforts to discover new treatments for multiple sclerosis.

The Alternative Investment Market-listed company said it could have access to sustainable sources of uniform human brain cells for drug testing.

Under the terms of the agreement, the MRF-supported Human Neural Assay Centre in Cleveland, Ohio, will perfect sustainable methods for culturing Stem Cell Sciences' human neural stem cells, providing a reliable source for drug testing.

The move is notable because most early-stage drug tests are currently done using animal cells, which have a high failure rate in drug development because of the differences between animals and humans.

Historically, access to primary human brain tissue suitable for cell culture has also been extremely limited and tissue that was available has been difficult to sustain in culture.

The company said the use of human neural stem cells overcomes this problem by "providing a constant, dependable and unlimited source of brain cells".

Stem cells are the building blocks of other cells, which researchers believe can be coaxed and grown into any type of cell in the human body.

The firm aims to create the technology for stem cells to be implanted directly into the body to repair the damage caused by a range of degenerative disorders, and eventually to play a major role in curing diabetes, Aids, multiple sclerosis, Parkinson's and Alzheimer's, as well as helping patients who have suffered strokes and spinal cord injuries.

Shares in the company were yesterday flat at 25.5p.